Stateofpaidsearch20152016 .pdf

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PPC Protect

Table of contents
03

Introduction

04

Who Participated

05

Annual PPC Spend

06

The Most Important PPC Channels For Advertisers

07

What’s Been The Most Important Aspect of the
Digital Marketing Industry Over The Last 12 Months?

08

How Advertisers Feel About The Current PPC Market

09

What Will Be The Most Important Aspect of the
Digital Marketing Industry In The Next 12 Months?

10

How Will Budgets Change In The Next 12 months?

11

Contact us

2

Introduction
The cornerstone of PPC has always been search, however the overarching theme from the past few
years is a sharp increase in technologies and platforms utilized by Search Marketers to aid the
performance of their overall PPC efforts. With the continued popularity of conversion rate
optimization strategies, more sophisticated capabilities within search and expanded targeting in
social and display advertising, it’s becoming easier to truly personalize a user’s experience based on
their behavior, preferences, and locations.
With the State of PPC, Hanapin Marketing’s annual survey of the pay per click (PPC) advertising
industry, we look under the hood of advertising’s fastest-growing industry and find out what makes it
tick, year by year.
This year, hundreds of search marketing professionals—both influencers and decision makers from a
variety of brands and digital marketing agencies —completed our survey and collectively reached some
very clear conclusions, including:





• Proven ad channels, like Text Ads, Mobile, and Remarketing continue to gain steam
• Many advertisers didn’t predict they would increase PPC budgets in 2015, however, the
majority of advertisers did see their spending increase in 2015 and now expect that trend to
continue into 2016
• Expanded targeting options available with social advertising combined with low CPCs
have made it a popular revenue channel for all advertisers

Keep reading for the most comprehensive statistical breakdown of the digital ad industry to date—and
to draw your own conclusions about where we’re headed.

About Hanapin Marketing
Hanapin Marketing is widely recognized as experts in the PPC industry. We publish several thought
leadership pieces annually, including the State of PPC and the 25 Most Influential PPC Experts lists.
Our blog, PPC Hero, and our all-PPC conference series, Hero Conf, provide the digital advertising
industry—and our clients—with cutting edge advice and leadership every step of the way.

The State of Ppc is an annual digital ad industry survey developed and maintained by Hanapin
Marketing. We collect anonymous, industry-forecasting opinions from leaders in the digital ad space
and deliver it to the industry as a resource, guide, and predictive analysis of the industry’s general
attitude, plans and outlook for the next year.

3

Who Participated?
Here’s what we know about
2015 State of PPC survey respondents:
55%

Are Managers within their company

20%

Specialists

55%
Managers

25%
Director

Level
and Above

Top Industries

60
40

Retail

15%

Agencies

Technology,
CPG, etc

Travel,
Entertainment,
etc

19%

All Others

Lifestyle

20
0

35%

31%

Across Multiple
Verticals

4

Annual PPC Spend
16%
43%

spending
over 2.5MM

spending between
1mM and 2.5MM

41%

spending less
than 1MM

Biggest Change:
Compared to 2014

Only 20% of respondents spent over
1MM annually on PPC last year,
however, this year 59% of respondents
spent over that figure.

Last Year

only10%

of the industry leaders
surveyed said they planned to
increase their PPC budget in 2015.

However

Over 70%

of this year's respondents
reported increasing their
budgets during 2015.
5

The Most Important
PPC Channels for Advertisers
100

80% 71%

80
60

3 "

40

90%

of advertisers say that
Text Ads are still the
most proven ads for
their business

20
0

Key Takeaway:
As the mix of PPC channels continues to expand; Text Ads, Remarketing, and Mobile Ads
remain the most proven channels, however shopping, social ads, programmatic, and native
ads are steadily growing in popularity and becoming more important to a business’
marketing mix.

KEY

100
80
60

54%

40

p

20
0

48%

U

40%

,

33%

&

25%

t

3
"
p
U
,
&
t

Text ads
Remarketing Ads
Mobile ads
Display Network Ads
Shopping
Social Network Ads
Programmatic
Native

6

What’s Been The Most Important Aspect of the Digital
Marketing Industry Over The Last 12 Months?
80
60

83%
70% 69%

65%

72%
62%

55%

50%

53% 56%

50%

64%

56%
47%

39%

40

44%
27%

33%

20
0

f , 4 i

"

l + & T

Key Takeaway:
Brands are still heavily favoring
automation software and conversion rate
optimization, while agencies have
started to focus on expansion
opportunities within the less proven
waters of social advertising, specialized
targeting, and social commerce.

KEY

Brands
Agencies

f
,
4
i
"
l
+
&
T

Conversion Rate Optimization
Social Advertising
Specialized Targeting
Automation Software
Mobile Location
Data Management
Social Commerce
Programmatic
New Ad Networks

7

How Advertisers Feel About
The Current PPC Market
PPC Success This Year
78% felt really good about their PPC Success this year
20% felt fair
Only 2% felt poor about their success this year

How people feel about
the market vs. last year

60% better
30% Same
10% Worse

48%

Say they plan to increase budgets next year

Key Takeaway:
The vast majority of businesses feel their PPC efforts have been successful over the
past year. Advancements in the industry have helped improve the momentum YOY and
marketers are feeling upbeat about the direction PPC is heading. As advertisers increase
their budgets and explore market expansion opportunities, the PPC industry will
continue to grow in 2016.

8

What Will Be The Most Important Aspect of the
Digital Marketing Industry In The Next 12 Months?
80
60

75%

74%

f ,

40

61%

60%

i

4

54%

"

52%

l

43%

42%

+ T

34%

&

20
0
KEY

Key takeaway:
While there are slight differences in opinions
on what has been and will be important in
PPC, both advertisers at agencies and brands
agree that social advertising and conversion
rate optimization are the two most important
aspects heading into 2016.
Over the next year we expect to see a surge
in agencies recommending that clients take
advantage of specialized targeting specifically
the use of mobile location as intent.

f
,
i
4
"
l
+
T
&

Conversion Rate Optimization
Social Advertising
Automation Software
Specialized Targeting
Mobile Location
Data Management
Social Commerce
New Ad Networks
Programmatic

9


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