Data Scout is Localogy’s series that curates and draws meaning from third-party data. Running semi-weekly, it adds an analytical layer to the industry data that we encounter in daily knowledge building. For Localogy original data, see the separate Modern Commerce Monitor™️ series.
New data from Kenshoo shows modest to strong increases in both ad spend and ad prices across CPC, social media, and eCommerce channel advertising. eCommerce advertising was the star of the show. That channel saw the highest growth rate driven by volume, rather than from rate increases.
The martech company’s latest Monthly Paid Media Spend Snapshot shows how media spend and ad prices track from July to August this year. Kenshoo launched this monthly report as a supplement to its Quarterly Trends Report. That report involves mining Kenshoo’s massive advertising account dataset to spot trends in key media channels.
Making it up in Volume
The Monthly Snapshot also mines Kenshoo’s account data to spot short-term trends in spending and pricing patters. The eCommerce numbers stood out, given the focus on eCommerce accelerating adoption during the pandemic.
Specifically Kenshoo is measuring spend on eCommerce channel advertising. The best example of this is the product ads served up contextually on Amazon. This was a $14.1 billion business for Amazon last year.
According to Kenshoo’s data, considerably more advertisers increased their per click budgets than cut them in this channel. In fact, 43% of advertisers spent at least 10% more on eCommerce ads in August than in July. Just under 30% of accounts were roughly neutral. The remainder cut their spending by 10% or more.
And the August increase in eCommerce ad spend is tied more to volume that to price increases. As the following chart shows, more than 45% were in the neutral zone for pricing in August.
Further, 32% of eCommerce accounts paid 10% or more per click in August versus July. This compares to 22% that spent -10% or less. Only 2% of accounts paid +50% or more per click in August. Meanwhile, 1% of accounts payed -50% or less.
Partnership with Instacart
Also this week, Kenshoo announced that it now supports Instacart advertising on its platform. The deal signals both the exploding growth of online grocery sales, as well as the rising clout of eCommerce channel advertising. Both no doubt boosted by the stay-at-home reality of the COVID era.
Kenshoo cites data from Coresight Research and Supermarket News showing a 22% jump in 2019 online grocery sales, with a 40% increase expected this year.
“We made it easier to profitably scale Instacart advertising independently or alongside campaigns on other top eCommerce marketplaces,” said Nich Weinheimer, general manager, Ecommerce for Kenshoo, in a statement. “With COVID-19 accelerating already-robust online grocery sales, CPGs understand that growth in 2020 and moving forward will be won or lost online.”