Brand new research by ClickZ, in collaboration with Kenshoo, has identified the key trends among advertisers for this holiday season. With 46% of advertisers set to spend more than they did last year and a further 46% set to spend "at least the same amount", a host of new trends and tactics will play out over this vital ecommerce period. This report will reveal a host of exclusive findings, including: - Where - and how much - brands plan to spend this holiday season - How and why plans have changed since 2017 - How digital marketing strategies differ across industries - The role of Amazon Advertising over the holidays - The new tactics advertisers are planning to employ, across search and social

1. DIGITAL
ADVERTISING
TRENDS 2018 HOLIDAY
SEASON
NOVEMBER 2018
IN PARTNERSHIP WITH:

2. In partnership with
Kenshoo, ClickZ presents
Digital Advertising Trends
for the 2018 Holiday
Season, a comprehensive
report based on a
survey of more than 300
marketers identifying
specifically where brands
will be spending, how this
spending differs from last
year’s, and what new media
formats are being utilized.
Within this report, we will
delve beyond the surface
of product announcements
to see what advertisers are
really prioritizing in their
holiday spending plans.
While Amazon edges
towards a central position in
the advertising landscape,
both Google and Facebook
have rolled out new
capabilities to improve
their respective advertising
offerings as well. Meanwhile,
Pinterest and Snapchat offer
an enticing complement
for brands seeking value
beyond the emerging triopoly
of Google, Facebook, and
Amazon.
In the process, the report
also reveals a number of
illuminating points about
how brands believe their
audiences will research,
compare, and purchase
products over the holidays.
Brands will naturally use
2017’s holiday performance
data as the yardstick for
2018’s projections, but that
also brings with it some
limitations. The context
has changed markedly
and there are plentiful new
opportunities out there for
those willing to experiment.
We aim to offer an additional
set of data points to feed
these plans by revealing
how the competition views
the market, from Facebook
Stories to Messenger ads,
from Amazon ads to Universal
App Campaigns (UACs).
As a result, we hope this
document will shed light on
the advertiser and consumer
trends that will define this
crucial sales period for so
many businesses.
Clark Boyd
Editor and Research Lead
Digital Advertising Trends for
the 2018 Holiday Season
ABOUT THE
REPORT

3. CONTENTS
Section 1. Foreword from Kenshoo . . . . . . . . . . . . . . . . .01
Section 2. Acknowledgements . . . . . . . . . . . . . . . . . . . .02
Section 3. Key findings . . . . . . . . . . . . . . . . . . . . . . . . . . .04
Section 5. The Facebook / Instagram
combination is compelling for advertisers . . . . . . . . . . . 11
Section 6. Social and search work
together towards advertisers’ goals . . . . . . . . . . . . . . . . . 14
Section 4. Marketers continue
to reward size and scale . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Section 7. Amazon ads are growing
in importance for retailers . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Section 8. Social media “Stories”
matter and advertisers are tuning in. . . . . . . . . . . . . . . . .19
Section 9. Pinterest and Snapchat
offer expanded reach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Section 10. Mobile leads the way . . . . . . . . . . . . . . . . . .25
Section 11. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Section 12. Key takeaways . . . . . . . . . . . . . . . . . . . . . . .30

4. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
ABOUT THE
REPORT
FOREWORD
FROM KENSHOO
The holiday season has
always been a juggernaut
for both consumers
and advertisers, but in
today’s hyper-connected,
omnichannel environment,
the volume and complexity
of online advertising
continues to reach new
heights each year.
Fear of missing out isn’t just
a viral meme for social media
users anymore. It applies
equally well to marketers
trying to reach potential
customers across all sorts of
hashtags and all manner of
media platforms.
So how can we make
sense of it? As our industry
simultaneously monitors
signals and data trails from
dozens of disparate sources
and draws conclusions from
isolated anecdotes, we
thought the simplest thing to
do would be just to ask.
Kenshoo, in partnership with
ClickZ, interviewed more than
300 respondents across the
spectrum of digital marketing
and asked what they did last
year for holiday marketing,
what they’re doing this year,
and how they’re doing it.
Based on more than $10
million in advertising dollars
managed on our platform
every day, we know that
the search, social, and
ecommerce channels are
critical for marketers this time
of year, but how critical? And
how are they being affected
by new publishers and new
formats?
Our research will shine a light
on some of the hot topics
as we head into the colder
temperatures, including
adoption of publishers
and platforms, shifting of
spending priorities over time,
and the emerging realities of
our mobile world.
Much like Charles Dickens,
we see this effort as visiting
holidays past, present, and
future.
There are insights here that
may serve to validate your
own strategy. You may find
something that will help
you correct your course as
we barrel into the heart of
the season. And you will
get a better sense of the
trends that will drive digital
marketing into the future.
ABOUT KENSHOO
Kenshoo provides
best-of-breed, full-funnel
marketing activation on
the channels with highest
customer engagement,
including search, social,
and ecommerce, enabling
success by maximizing
channel impact and
customer lifetime value.
As the industry’s leading
and award-winning digital
marketing platform, Kenshoo
delivers opportunities to
re-engage and grow
customers across the world’s
leading publishers and all
devices.
1

5. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
ACKNOWLEDGEMENTS
Christi Olson
Head of Evangelism
Microsoft
Christi is the Head of Evangelism for Bing at Microsoft and is on the Board of Directors for the Search Engine
Marketing Professional Organization (SEMPO) and the University of Idaho School of Business. She has been
recognized by PPC Hero and her peers as one of the Top 25 Most Influential PPC Experts in 2018, 2017, 2016,
and 2015. Her love for digital has driven her to speak at hundreds of conferences including AdWeek, the American
Marketing Association, ClickZ and SEW, Digital Dealer, Digital Marketing Conference Series, SMX, PubCon,
HeroConf, and Search Insider Summit.
Andrew Spikes
Head of Global Paid Search
UPS
Andrew Spikes is currently the Head of Global Paid Search at UPS. He’s a performance marketing leader with
domain expertise in paid search, marketing strategy, and digital advertising. He currently oversees UPS’s global paid
search program (36 countries including the US) and leads the digital media planning and optimization for UPS’s
international digital marketing campaigns inclusive of programmatic display and video advertising, paid social, CRM,
and SEO. Prior to UPS, he held similar digital marketing roles at national advertising agencies, venture capital-
backed start-ups, and other Fortune 500 organizations.
Chris Costello
Senior Director of Marketing Research
Kenshoo
Chris is a marketing research and analysis professional with over 20 years of experience in digital marketing
measurement, online behavioral analysis and traditional market research, playing an integral role in solving real
problems with real data and providing clear courses of action in competitive business environments. At Kenshoo,
he leads the planning and execution of a research agenda that delivers exceptional marketing value and thought
leadership.
Nikolai Zeinokov
Ecommerce Director
Heineken
Recently included in Shopper Marketing’s “Who’s Who in Ecommerce 2017” and “Who’s Who in Digital
Marketing for Shoppers 2018,” Nikolai has more than 10 consecutive years of winning in CPG Ecommerce
and Digital Marketing. He’s worked in 16 different countries across Europe, Asia, and the Americas. His career
includes senior ecommerce positions in companies such as The Walt Disney Company, Kimberly-Clark, and
most recently Heineken USA.
Cindy Krum
CEO
MobileMoxie
Cindy Krum is the CEO and Founder of MobileMoxie, LLC, a mobile marketing consultancy and host of the
most cutting-edge online mobile marketing and SEO tool set on the market. She brings fresh and creative
ideas to her clients, providing on-site training and workshops, as well as speaking at national and international
conferences on a regular basis. Cindy is an active member of the search community. She is passionate about
bringing creative online marketing solutions to clients. Cindy is also the author of Mobile Marketing: Finding
Your Customers No Matter Where They Are, published by Que Publishing and now also available in German,
Italian, Korean, and Chinese.
Sissie Hsiao
VP of Product, Mobile App Advertising
Google
Sissie Hsiao is the global product leader for Google mobile advertising. She leads product strategy and
development for App monetization, reaching millions of apps and billions of app users. Her areas of
responsibility include building a global business, leading both advertiser and publisher facing components of in-
app advertising, as well as leadership on Google’s broader cross-device initiatives. Prior to her work on mobile
ads, Sissie led all of Google’s cross-channel measurement and attribution efforts, and brought Google Display
Network and DoubleClick for Advertisers measurement to Google Analytics.
Prior to Google, Sissie was a Lead Program Manager at Microsoft, launching multiple versions of Microsoft
Office PowerPoint. Sissie has a BS in Electrical Engineering and Computer Science from University of
California, Berkeley.
2

6. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Today’s consumer can
get exactly what they
want, whenever they
want it, instantly and
effortlessly—which
is changing how they
expect brands to
engage them.
“”
SISSIE HSIAO
VP OF PRODUCT, MOBILE APP ADVERTISING
GOOGLE

7. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
KEY
FINDINGS
Marketers continue to reward size and scale.
ClickZ research finds that 46% of brands plan to increase
spending for the 2018 holiday season as compared to last year,
46% will spend roughly the same amount, and only 8% of brands
will decrease their marketing budgets.
Platforms such as Twitter, Pinterest, and Snapchat will receive
more marketing dollars than they did last year. However, Google,
Facebook, Instagram, YouTube, and display continue to be the
primary beneficiaries of the general increase in spending. 46% of
brands surveyed reported increased spending on Google Search,
40% on Facebook, and 36% on Instagram.
Instagram and YouTube are on the rise.
Instagram and YouTube have seen the biggest growth in digital
marketing this year, percentage-wise. YouTube saw the biggest
jump in advertiser participation, with 33% of brands planning to run
ads on the platform this year compared to 26% in 2017. Instagram
follows closely, with an increase from 40% last year to 45% in
2018. This growth suggests that advertisers are understanding a
need to move to image- and video-based ads to engage modern
consumers.
The Facebook / Instagram combination is compelling for
advertisers.
Facebook as a company is experiencing increased user and
advertiser activity. Survey results reveal that Facebook as a
specific channel will see a slight dip in the number of active
advertisers this holiday season, with 72% of brands planning to
run ads on Facebook compared to the 75% of brands who did so
in 2017.
However, spending on Instagram, owned by Facebook, is
increasing. 56% of brands who plan to invest in Facebook are also
increasing their Instagram investment compared to 2017. So, while
we are seeing a slight decrease in brands who plan to advertise on
Facebook this year, the company as a whole will still experience a
sizeable net gain in advertiser activity.
4

8. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Social and search work together toward advertisers’ goals.
Surveyed brands were asked about their biggest considerations in social versus search
when planning their 2018 holiday marketing budgets. In analyzing our findings, it’s
important to note that search and social serve different user and advertiser purposes.
For example, where social leads in achieving conversion goals and reach, brands are
considering search a slightly more valuable component for ROI. So, while search and
social serve distinctly different functions, the two converge at the same point of making
money for brands.
Amazon ads are growing in importance for retailers.
There’s no doubt that Amazon needs to be taken seriously as an advertising giant, with
56% of retail or ecommerce brands planning to maintain or increase their Amazon
advertising budget this year.
Advertisers view Amazon as an important component of a holiday sales strategy,
alongside Google. While some reports say that budgets are shifting en masse from
Google to Amazon1
, the heightened demand of the holiday season means brands are
opting to cover all the bases. 86% of brands who plan to run ads on Amazon will also
do so on Google.
Social media “Stories” matter and advertisers are listening.
Facebook and Instagram have adopted their own versions of Stories, providing users
the chance to post without the pressure of getting “enough” likes and comments.
Advertisers are starting to notice and aren’t letting the Stories opportunity slip by. 38%
of brands state that they have included Facebook Stories in their holiday marketing
plans and 37% have included Instagram Stories, making these two of the most popular
new advertising opportunities for the 2018 holidays.
1
https://www.cnbc.com/2018/10/08/google-search-losing-
some-adverrtising-business-to-amazon-ad-sources.html
Pinterest and Snapchat offer expanded reach.
Big brands are rounding out their holiday marketing strategies this year by increasing
spending on historically smaller platforms. Though these platforms won’t experience
quite the same level of marketing spend this holiday season as Google, Facebook, and
Instagram, they are still being considered valuable marketing opportunities for both
sales and awareness.
Mobile leads the way.
As in years prior, spending on mobile marketing is on the rise. Consumers rely
increasingly more on their mobile devices than they do on their desktops. In fact, 73%
of brands believe advertising on mobile will be more important than on desktop for
sales and 70% believe it will be more important for brand awareness, confirming that
mobile’s significance is not restricted to certain strategies. Rather, mobile is where
brands need to be spending and innovating, no matter their objective.
As far as app advertising, Facebook remains the leader, and Apple trails behind
in second, barely nudging out Google in third. Where we might expect Google
to be another clear leader, according to our survey results Facebook and Apple
advertisements appear to be more popular with marketers who are looking to drive app
downloads and purchases this holiday season.
5

9. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
MARKETERS
CONTINUE TO
REWARD SIZE
AND SCALE
As the 2018 holiday season
nears, online shopping
carts grow fuller.
Businesses and consumers
alike continue to go digital,
and marketers are following
suit. With the seemingly
constant emergence of new
social, search, and shopping
platforms, we’re seeing the
spending of brand marketing
dollars increase and the net
of spending cast a little wider.
Overall, the survey results tell
us that brands are investing
more marketing dollars
everywhere, from smaller
platforms to large ones.
Though marketing
opportunities continue
to diversify and channels
such as YouTube, Twitter,
and Pinterest gain speed,
the spending gap between
the smaller channels and
the big players—Google
Search, Facebook, Instagram,
and display—continues to
increase, providing evidence
that marketers know what
channels work best and plan
to invest accordingly.
78% OF
RESPONDING
BRANDS WILL RUN
GOOGLE SEARCH
ADS THIS HOLIDAY
SEASON, 72%
WILL SPEND ON
FACEBOOK ADS,
45% WILL SPEND
ON INSTAGRAM,
AND 39% WILL
RUN DISPLAY
ADVERTISING
CAMPAIGNS.
6

10. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
The year-on-year trend is one
of modest growth for most
channels in terms of sheer
advertiser volume.
Figure 1. Via which
advertising channels /
publishers will your
company run ads for the
holiday season?
(2017 vs. 2018)
This growth is put into sharper
focus when we analyze the
budgets advertisers have set
aside for the 2018 holiday
season.
Looking at only the brands
who plan to invest in
advertising on each channel,
the overwhelming consensus
is that advertisers will grow
their spend compared to the
same period last year.
CHANNEL
Google Search 75.5%
Facebook 75.2%
Instagram 42.3%
Display advertising 36.6%
YouTube 26.3%
77.6% 2.1%
71.8% -3.4%
44.8% 4.6%
38.7% 2.1%
33.4% 7.1%
2017 2018 YOY CHANGE
Bing Search 24.8%
Google Shopping /
Product Listing Ads
25.7%
Twitter 23%
Amazon Marketing Services 11.8%
27.3% 2.5%
26.4% 0.7%
25.8% 2.8%
15.6% 3.8%
Other search engines 10.6%
Pinterest 9.4%
Bing Shopping /
Product Listing Ads 6.6%
Snapchat 4.8%
13.2% 2.6%
12.9% 3.5%
9.8% 3.2%
8.3% 3.5%
20182017
Figure 2. By how much is
your company planning to
increase budget over the
holiday season compared
with 2017 for the following
channels? (Methodology
note: Includes only
advertisers that plan to
invest in each channel.)
A very small minority plan to
decrease their investment this
year, too:
Figure 3. Is your company
planning to increase or
decrease budget over the
holiday season compared
with 2017 for the following
channels? (Increase vs.
decrease)
100%
75%
50%
25%
0%
GoogleSearch
Facebook
Instagram
Displayadvertising
YouTube
BingSearch
GoogleShopping/
ProductListingAds
Twitter
AmazonMarketing
Services
Pinterest
BingShopping/
ProductListingAds
Snapchat
80%
60%
40%
20%
0%
GoogleSearch
Facebook
Instagram
Displayadvertising
YouTube
BingSearch
GoogleShopping/
ProductListingAds
Twitter
AmazonMarketingServices
Othersearchengines
Pinterest
BingShopping/
ProductListingAds
Snapchat
Plan to increase
spend versus
last year
Plan to deacrease
spend versus last
year80%
60%
40%
20%
0%
GoogleSearch
Facebook
Instagram
Displayadvertising
YouTube
BingSearch
GoogleShopping/
ProductListingAds
Twitter
AmazonMarketing
Services
Pinterest
BingShopping/
ProductListingAds
Snapchat
7

11. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
With 63% of Instagram
advertisers due to increase
their investment in the
channel, the overall Facebook
share of the social media
space is more impressive than
ever.
From this, we can see that
advertisers know which
channels deliver the highest
return on the metrics that
matter to them. As a general
rule, if brands are running
ads on a channel this holiday
season, they plan to increase
their investment.
The stakes are high at such
a crucial period. Nikolai
Zeinokov notes, “Advertisers
are risk-averse when they know
they need to deliver on their
numbers.”
This trend also leads to the
question of the specific tactics
advertisers plan to employ.
Christi Olson of Microsoft notes,
“There will be consistency in
where brands spend their ad
dollars this year versus last year:
search, shopping, and social.
Specifically, we will see more
investment in remarketing
and audience targeting,
as new and more effective
capabilities take center
stage. Advertisers have really
seen the value of Shopping
campaigns from the high
levels of engagement they
receive, particularly when they
prioritize image quality.”
Advertisers will tend to use
last year’s performance
figures as a benchmark for
this holiday season, but this
can be a limited source of
data for a traffic or revenue
projection. Numerous factors
can affect the nature and
location of consumer demand,
which means brands need to
pace their budgets and move
to where their audience is
active.
Cindy Krum, CEO of
MobileMoxie adds, “This year
we have also seen the launch
of a range of new mobile
technologies, both in terms
of smartphones and smart
home devices. The majority
of these are voice-enabled
and those interactions will
provide tech companies with a
new data source to feed their
advertisements.”
CHANNEL
Google Search 54%
Facebook 50%
Instagram 63%
Display advertising 52%
YouTube 55%
6%
4%
4%
3%
4%
PLAN TO INCREASE
SPEND VERSUS
LAST YEAR
PLAN TO DECREASE
SPEND VERSUS
LAST YEAR
Bing Search 39%
Google Shopping /
Product Listing Ads
58%
Twitter 51%
Amazon Market Services 43%
5%
4%
4%
4%
Pinterest 71%
Bing Shopping /
Product Listing Ads
48%
Snapchat 48%
2%
10%
1%
While last year’s data is a
helpful barometer, new trends
and behaviors will arise as
this year’s holiday season
progresses.
Sissie Hsiao, VP of Product,
Mobile App Advertising at
Google, builds on this point
to reflect on what is now
a lengthy holiday spell for
consumers rather than just
a collection of individual,
landmark dates: “It’s tempting
to dedicate the majority of
your marketing resources
to the busy Black Friday-to-
Cyber Monday period, but
most holiday shoppers are
active from October through
the end of December. If you’re
mainly (or only) targeting
those days, you’ll miss the
chance to connect with many
potential customers. The
trends we’re noticing reveal
key information about holiday
shoppers’ behavior: they are
browsing and purchasing over
longer stretches of time, and
it’s more important than ever
for brands to be there for
them earlier in the season.”
Instagram and YouTube
are on the rise.
Though we’re still seeing most
of the dollars spent on the
usual suspects, percentage-
wise, Instagram and YouTube
have seen the biggest growth
this year.
Compared to last year,
marketing spending on
Instagram went up by 5
percentage points and on
YouTube by 7 percentage
points.
The rise in Instagram
advertising activity is led by
three industries in particular:
publishing, retail, and travel.
Figure 4. Will your company
run ads on Instagram this
holiday season? (2017
vs. 2018, segmented by
industry)
0% 10% 20% 30% 40%
Publishing
Retail
Travel
20182017
8

12. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
The average across all
industries for brands planning
to run ads on Instagram
is 45%, while the average
among publishing, retail,
and travel—the top three
industries advertising on the
platform—nears 55%. The
brands in these industries
are clearly paying attention to
where their customers are.
On average, publishing,
retail, and travel increased
their budgets by 12% this
year, indicating that these
industries are seeing bigger
opportunity for awareness
and sales on Instagram.
Marketers are realizing that
they need to up their game
if they want to be noticed
amid the quick scrolling and
searching that characterize
the consumer journey
today. Sponsored posts on
Instagram aim for the elusive
“thumb-stopping” quality that
causes a user to pause and
engage with the content.
On the YouTube side, brands
need to rise to the challenges
of the platform as well, finding
the right balance between
promoting awareness
while not disrupting user
experience with irrelevant ads
before every video.
Just 78% of the brands who
plan to run ads on YouTube
this holiday season also
ran ads on the platform
over the holidays in 2017.
Of those who did spend on
YouTube last year, 62% plan
to increase their level of
investment this year.
This leads to the question
of what role YouTube will
play in a holiday marketing
strategy. Looking only at
those advertisers who will
run YouTube ads this year, it
is clear that its potential to
drive brand awareness is a
significant draw.
46% of YouTube advertisers
see the video sharing platform
as an important medium for
increasing brand awareness,
just edging out Facebook
at 45%. This contrasts with
the overall list of responding
advertisers, of whom 72% say
Facebook will be an essential
brand awareness channel
over the holidays.
Figure 5. Which channel
will be most important
for your business for
BRAND AWARENESS
this holiday season?
(YouTube advertisers vs. all
advertisers)
80%
60%
40%
20%
0%
YT advertisers All advertisiers
YOU NEED THE
RIGHT TECH ON
THE BACK-END
TO ENABLE YOU
TO SCALE YOUR
ADVERTISING
STRATEGY AS NEW
IMPRESSIONS
OCCUR,
THROUGHOUT THE
COURSE OF EACH
DAY.
- CHRISTI OLSON
MICROSOFT
“”
The picture is markedly
different when we look at
the importance of YouTube
for sales among these same
advertisers.
­­Figure 6. Which channel
will be most important for
your business for SALES
this holiday season?
(YouTube advertisers only)
82% view Google Search as
an important sales channel,
followed by Facebook at
41%. Just 23% of brands
who will advertise on YouTube
feel it will be important
for increasing sales. This
sheds some light on the role
YouTube will play within a
wider holiday advertising
strategy, alongside
sales-driving activities.
This provides a very healthy
supplementary source of
revenues for Google and
Facebook, of course, while
also allowing the duopoly
to move directly into video
advertising.
The increase in marketing
spend on both Instagram
and YouTube this year tells
us that brands are following
user preferences for more
image- and video-based ads
and embracing these digital
marketing changes.
In the next section, ClickZ’s
survey results reveal an
evolving relationship between
Facebook and its legion of
advertisers.
75%
50%
25%
0%
CHANNEL
Google Search 82%
YouTube 23%
Facebook 41%
76%
11%
47%
YT
ADVERTISERS
ALL
ADVERTISERS
YT advertisers All advertisiers
9

13. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Ecommerce has blurred
the boundaries between
landmark dates; the
holiday season now
spans a period of
months.
“”
ANDREW SPIKES
HEAD OF GLOBAL PAID SEARCH
UPS

14. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
THE FACEBOOK /
INSTAGRAM
COMBINATION IS
COMPELLING FOR
ADVERTISERS
Facebook as a company
continues to experience
increased activity from
both users and advertisers.
ClickZ survey results reveal
that Facebook as a specific
channel will see a slight
dip in the number of active
advertisers this holiday
season, with 72% of brands
planning to run ads on
Facebook compared to the
75% of brands who did so in
2017.
This still places Facebook in
a very strong second position
in terms of advertiser volume,
behind only Google Search.
IN FACT, OF THE
72% OF BRANDS
WHO PLAN TO
ADVERTISE ON
FACEBOOK, 50%
PLAN TO INCREASE
THEIR BUDGETS
COMPARED TO
LAST YEAR.
11

15. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Figure 7. Is your company
planning to increase,
maintain, or decrease
its Facebook advertising
budget this holiday season,
compared with 2017?
Notably, 82% of retail brands
and 91% of travel companies
plan to advertise on Facebook
this year, making it the
number one advertising
channel for these two
industries in the 2018 holiday
season.
Figure 8. (Right) Will your
company run Facebook
ads this holiday season?
(Segmented by industry)
Year-on-year decreases in
Facebook activity are most
notable in the financial
services and technology
industries. These advertisers
report an increase in spend
for display advertising
and LinkedIn, which may
represent a more targeted
distribution of budget based
on their audience’s behaviors.
Moreover, Facebook trails
only Google Search in most
categories. When asked to
select up to three answers,
76% of brands say Google
Search will be the most
important channel for driving
sales this holiday season, with
Facebook coming in at 46%
and Google Shopping at 23%.
Figure 9. Which of the
following will be most
important for your
company to drive BRAND
AWARENESS and SALES
this holiday season?
Please select up to three.
80%
60%
40%
20%
0%
Google
Search
Facebook
Instagram
YouTube
Display
advertising
Awareness Sales
Increase
50%
Increased
significantly
since last year
20.4%
Same
42%
Decrease
8% Facebook also harbors a very
successful Instagram under
its wing. While Facebook may
be seeing a 3% decline in the
pure quantity of advertisers
this year, Instagram is seeing
a clear increase in brands
who plan to run ads on its
channel: 45% compared to
last year’s 40%. While this
falls short of the 72% of
brands planning to advertise
on Facebook, it’s obvious that
advertising on Instagram is
growing.
In fact, when looking at the
two platforms in relation to
each other, 94% of Instagram
advertisers will also run ads
on Facebook and 59% of
advertisers on Facebook say
they will also run Instagram
ads.
Figure 10. Will you run ads
on Facebook this holiday
season?
94% of Instagram
advertisers will advertise on
Facebook
68% of non-Instagram
advertisers will advertise on
Facebook
While users and advertisers
alike might be adjusting
their habits, Facebook as a
whole is still seeing positive
growth and activity from both
platforms.
In the next section, ClickZ’s
findings reveal that though
social and search function
differently, the two channels
can work together to
accomplish brand conversion
goals.
0% 100%
0% 100%
100%
75%
50%
25%
0%
Financial
Services
Media/Publishing
Professional
Services
Retail
Technology
Travel
12

16. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Search and social need
to work together, but
advertisers also need
to bear in mind that
consumer expectations
are different on each
channel.
“”
CHRISTI OLSON
HEAD OF EVANGELISM
MICROSOFT

17. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
SOCIAL AND
SEARCH WORK
TOGETHER TOWARD
ADVERTISERS’ GOALS
In our survey, brands
were asked about their
biggest considerations in
social versus search when
planning their 2018 holiday
marketing budgets.
In analyzing our findings, it’s
important to note that search
and social serve different
user purposes. Therefore,
advertisers will use the
channels to achieve different
goals.
For example, where social
edges out search in
conversion goals and reach,
brands are considering search
a slightly more valuable
component for ROI.
All to say, while search and
social serve distinctly different
functions, the two converge
at the same point of making
money for brands.
14

18. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Figure 11. Which of the
following will most affect
your advertising budget
this holiday season? Social
vs. search
Where once social was
primarily used for reach and
brand awareness, it is now a
pivotal channel for sales and
conversions as well.
Of course, the term
“conversion” has a broad
set of potential meanings,
from “liking” a brand page to
visiting the brand’s website
and making a purchase.
Nonetheless, these results
make clear that social is a
fundamental component of
many advertisers’ conversion
strategies.
“Social is fantastic for luxury
research, but at a certain
price point the research
journey moves into search,
direct traffic, and referrals.
That’s where a strategy has to
take a comprehensive view of
the consumer journey, rather
than focusing exclusively
on social media.” - Nikolai
Zeinokov
Social is a multifaceted
category that houses
a number of separate
disciplines. A comparison of
Social Search
WHERE ONCE
SOCIAL WAS
PRIMARILY USED
FOR REACH
AND BRAND
AWARENESS, IT IS
NOW A PIVOTAL
CHANNEL FOR
SALES AND
CONVERSIONS AS
WELL.
40%
30%
20%
10%
0%
Conversion/
acquisitiongoals
Returnon
investment
Reach
Adpricing
Overallchannel/
publisherbudget
Instagram, Facebook, and
Pinterest advertisers surfaces
some subtle distinctions
between the advertising
purposes of each. Instagram
and Facebook both over-
index versus the overall social
media average for ‘conversion
/ acquisition goals,’ while
Pinterest is above average for
“reach” and “ROI.”
Figure 12. Which of
the following will most
influence your SOCIAL
advertising plan for
the holiday season?
(Segmented by individual
social networks)
Overall Instagram Facebook Pinterest
40%
30%
20%
10%
0%
Adpricing
Conversion/
acquisitiongoals
Channel
budget
Reach
ROI
15

19. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Search is currently more
distinctly defined by a
combination of conversions
and cost, with brands still
seeing search as having a
better return on investment
than social.
Due to sheer weight of
numbers, Google Search is
contiguous with the search
advertiser average. The sales
focus of Amazon Advertising
still comes through, with
brands who plan to run
Amazon ads particularly
interested in how it can help
meet their conversion goals.
They are also influenced
mostly by the price of ads
on Amazon, owing largely
to the nascent nature of the
platform.
Figure 13. Which of
the following will most
influence your SEARCH
advertising plan for
the holiday season?
(Segmented by individual
search engines)
In summary, social is
being considered a more
serious contender as far as
conversion and acquisition,
while search is being seen as
more valuable for a company’s
ROI.
The underlying distinction
between the two remains the
nature of consumer intent on
search versus social. Where
a searcher reveals their
intent—either implicitly or
explicitly—via their search
query, a social media user is
much less likely to do so in
this manner.
A social media user will
browse more often than
search, which fundamentally
shapes the challenge for
advertisers intent on reaching
their audience at the right
time.
As search moves up the
traditional conversion funnel
by becoming more visual
and social moves down that
same funnel with increasing
emphasis on conversion and
customer acquisition, the two
will continue to converge in
evermore powerful ways.
Chris Costello, Senior Director
of Marketing Research at
Kenshoo, notes, “Search and
social advertising are both
aspiring to be full-funnel
experiences, which means
they are starting to overlap in
form and function.
Similarities for product ads
based off of data feeds is the
number one example.
Still, recognizing that there
are strong suits to each, and
that consumers will shift
across these channels is
critical to successful online
advertising.
You can, and will, activate
your target audience in one
channel, and then capture
the resulting demand in
another. Plan, and measure,
accordingly.”
In the next section, we will
explore the unique role ads on
Amazon will play during this
upcoming holiday season.
40%
30%
20%
10%
0%
Adpricing
Conversion/
acquisition
Channel
budget
Reach
ROI
Overall
advertiser %
Google Search
advertisers%
Google Shopping
advertiser %
Amazon
advertiser %
16

20. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
AMAZON IS GROWING
IN IMPORTANCE—
ESPECIALLY FOR
RETAILERS
Advertising on Amazon
will increase significantly
over the 2018 holidays
compared to 2017, with
retailers viewing the
ecommerce giant as a vital
component of their sales
strategy.
According to ClickZ data,
for those who do plan to
advertise on Amazon this
holiday season, advertising
during special occasions
seems to be a top priority.
Brands see Amazon ads
served to shoppers in closer
proximity to their final
purchase click as the perfect
place to boost revenue when
those shoppers are in a
buying mood for the holidays.
This tallies with the recent
Era of Ecommerce report,
which found that 50%
of ecommerce consumer
journeys start with a retailer
and 50% start with a search
engine.
Within the list of 20 retailers
in the Era of Ecommerce
research, Amazon is a
dominant presence and that
position will only be cemented
by the offers available
for Christmas and the
Thanksgiving weekend.
Similarly, 67% of brands
advertising on Amazon will
run Black Friday campaigns
and 63% will run Cyber
Monday campaigns, compared
to 47% and 38% respectively
of overall brands.
82% OF BRANDS
THAT PLAN TO
ADVERTISE
ON AMAZON
THIS HOLIDAY
SEASON WILL
RUN CHRISTMAS-
SPECIFIC
CAMPAIGNS,
COMPARED TO
72% OF OVERALL
BRANDS.
17

21. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Figure 14. For which of the
following occasions will
you run specific advertising
campaigns this holiday
season? (Amazon vs.
survey average)
In fact, brands who are
including Amazon in their
marketing plans will allocate
an average of 21% of their
budgets to this channel.
Another third of their budgets
will go to Google in the form
of Search or Shopping ads.
Even though Google still
edges Amazon out in that
category, 21% is a substantial
proportion of a marketing
budget, making Amazon a
crucial consideration for
holiday marketing.
Figure 15. How will
your holiday advertising
budget be split across the
following channels?
Figure 16. How will your holiday advertising budget be split
across the following channels? (Amazon advertisers only)
100%
75%
50%
25%
0%
Black Friday Cyber Monday Christmas
Paid search
(incl. Product
Listing Ads)
35%
Paid social
20%
Ecommerce
channels
(incl. Amazon)
16%
Display ads
(incl. programmatic)
13%
Email
6%
Other
6%
Native ads
4%
Paid search
(incl. PLAs)
33%
Ecommerce
channels
(incl. Amazon)
21%
Paid social
17%
Display ads
(incl. programmatic)
17%
Email
7%
Other
3%
Native ads
2%
According to Figures 14 and
15, surveyed brands reported
an average of 35% of
marketing budgets allocated
to paid search, while brands
who plan to advertise on
Amazon reported an average
of 33% of budgets going
towards the channel.
For all brand marketers
surveyed, paid social is the
next biggest investment
after paid search. However,
when looking at just
Amazon marketers,
ecommerce—rather than
paid social—is the next
biggest investment.
This allocation and these
occasion-specific marketing
plans point to one clear goal:
sales.
Brand marketers know that
many consumers are ditching
the malls and heading to
ecommerce stores in droves,
filling up online shopping
carts and even paying yearly
subscription fees to receive
two-day or same-day shipping.
Equally, marketers know
that consumers research
online and then make their
purchases in-store as well.
Recent ClickZ data from the
Era of Ecommerce report
found that 70% of consumers
do so “Sometimes,” and 15%
perform online research then
purchase offline “Always.”
That “Always” figure rises to
25% for consumers aged
18-34.
This pattern surfaces in the
new data from the holiday
advertisers’ survey, too.
In fact, 50% of marketers
planning to advertise on
Amazon will run local ads this
holiday season (compared to
41% of all advertisers), in an
effort to connect offline and
online stores.
Amazon
advertisers All advertisers
18

22. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
SOCIAL MEDIA
“STORIES” MATTER
AND ADVERTISERS
ARE TUNING IN
“Stories” are becoming
an integral part of the
social media experience,
giving users of Snapchat,
Instagram, and Facebook
the ability to post photos
and short videos for just 24
hours.
As this feature is becoming
more popular on Instagram
and Facebook (with a
reported 1 billion Facebook
Stories shared daily2
), brands
are including it in their
marketing budgets.
A further 31% considered
Messenger ads but did not
include them in this year’s
strategy.
38% OF BRANDS
ARE INCLUDING
FACEBOOK
STORIES INTO
THEIR HOLIDAY
MARKETING
PLANS AND 37%
ARE INCLUDING
INSTAGRAM
STORIES.
2
https://s21.q4cdn.com/399680738/files/doc_financials/2018/
Q3/Q318-earnings-call-transcript.pdf 19

23. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Figure 17. Which of the following new opportunities are you
including in your advertising for the 2018 holiday season?
Interestingly, Snapchat, the
app responsible for beginning
the Stories craze, will receive
very little of these marketing
dollars this holiday season
comparatively, with only
10% of brands planning to
advertise on the platform.
Although Snapchat initially
popularized this content
format with a mass audience,
its moves to attract
advertisers were slower to get
off the ground.
Instagram has taken the
format and run with it,
fine-tuning and improving
Snapchat’s innovation. In
the process, it has started
to prove to advertisers
that Stories can drive the
engagement they crave with
their target audiences.
This dynamic plays out in the
survey results. 62% of brands
who do plan to advertise on
Snapchat Stories will also
invest in Instagram Stories,
making it clear that marketers
will go where the users go.
If a brand advertises on
Snapchat, but their audience
starts to migrate to Instagram,
that brand will allocate money
to Instagram as well.
50%
40%
30%
20%
0%
Localads
10%
FacebookStories
Automatedads
InstagramStories
Visualsearch
In-appads
Messengerads
Callintelligence
Pinterestads
Included
in plan
Considered for plan but
not included
ADVERTISING
OPPORTUNITY
Local ads 41.6%
Facebook Stories 37.8%
Automated ads 37.5%
Instagram Stories 36.9%
Visual search 24.1%
25.3%
29.4%
27.2%
30%
23.7%
INCLUDED IN PLAN
CONSIDERED FOR
PLAN BUT NOT
INCLIDED
In-app ads 20.5%
Messenger ads 20.3%
Call intelligence 16.4%
Pinterest ads 15.1%
30.8%
20.8%
23.7%
24.6%
Instagram has seen the most
success with its Stories
feature since rolling it out in
2016, claiming more than
400 million daily users3
of the
popular feature. Facebook
as a platform is relatively
new to the concept and is
still finding its groove, having
only rolled out the feature in
the beginning of October this
year4
.
This begs a question with
myriad possible answers:
What is it about Instagram
and Facebook Stories that’s
making advertisers latch on?
With the evolution of Stories,
brands see an opportunity
for more direct user
engagements through social
media, potentially in the form
of increased conversions.
However, they should
be viewed as a broader
marketing play rather than
a direct attempt to deliver
acquisitions.
Chris Costello of Kenshoo
builds on this: “These ad types
are going to be more about
activating intent through
branding rather than capturing
it, which means you still need
to convert those potential
customers with other ads and
across other channels.”
This dynamic is clear within
the survey results. When
asked which trends they
see as the breakthrough
developments this holiday
season, answers from
advertisers include,
“Humanizing brand stories,”
“Making an emotional
connection through digital
ads,” and “Developing an
engaging narrative journey.”
Where the typical Instagram
post might fall short, the
Instagram Story has a
solution. Brands can now
connect with their audience
beyond sponsored products or
posts, and link to an outside
website through a Story.
The introduction of Stories
also allows brands to post
more frequently without
compromising style or
aesthetic.
Of brands who do plan to
invest in Facebook Stories
this holiday season, 71%
of them think Facebook
will be the most important
channel for awareness and
63% think it will be the most
important for sales. 73% of
these brands plan to spend on
Instagram Stories as well.
While this newer option of
Stories is experiencing a
certain level of marketer
experimentation, many
brands still turn to smaller but
valuable channels as well, as
the next section will explore.
THESE AD TYPES
ARE GOING TO
BE MORE ABOUT
ACTIVATING
INTENT THROUGH
BRANDING RATHER
THAN CAPTURING
IT, WHICH MEANS
YOU STILL NEED
TO CONVERT
THOSE POTENTIAL
CUSTOMERS WITH
OTHER ADS AND
ACROSS OTHER
CHANNELS.
- CHRIS COSTELLO
KENSHOO
“”
3
https://www.cnbc.com/2018/06/28/instagram-
stories-daily-active-users-double-snapchats.html
4
https://www.campaignlive.co.uk/article/facebook-
launches-advertising-stories/1494100 20

24. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Visual search will be
a real growth area
this holiday season.
Advertisers should be
building their brand on
Pinterest if they want to
take advantage.
“”
NIKOLAI ZEINOKOV
ECOMMERCE DIRECTOR
HEINEKEN

25. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
PINTEREST AND
SNAPCHAT OFFER
EXPANDED REACH
This year more than ever,
big brands are rounding
out their holiday marketing
strategies by increasing
spend on historically
smaller platforms such
as Pinterest, Twitter, and
Snapchat.
Though these platforms won’t
experience quite as much
marketing spend this holiday
season as Google, Facebook,
and Instagram, they should
still be considered valuable
marketing opportunities for
both sales and awareness.
Some brands are particularly
keen on this.
One respondent to our survey
reported that their business
plans to “spend 10% on
something different to avoid
following the pack.”
“At Heineken, we’ve had
great results from Pinterest.
It allows brands to develop a
lifestyle aesthetic that goes
beyond just showcasing the
product.” - Nikolai Zeinokov,
Heineken
Nikolai Zeinokov builds on
this point: “Also, Pinterest’s
demographic base is a bit
more senior than Instagram’s
and tends not to be mobile-
only, as is so often the case
with Instagram use. Therefore,
we found it easier to link out
to our website ecommerce
platform from Pinterest and
have seen some direct returns
on our investment.”
Even though the usual
suspects continue to get the
most user and marketing
traffic, people still are turning
to these other platforms in
significant numbers.
Brands will and should
continue to advertise on the
big channels, but allocating
dollars to the smaller ones will
gain them access to markets
that aren’t as saturated.
Chris Costello of Kenshoo
notes, “For Pinterest, it’s
discovery, but in a way that is
22

26. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
perhaps more comprehensive
than traditional search
engines.”
According to the ClickZ
survey, many of the brands
that plan to advertise on
smaller platforms have the
luxury of large budgets that
allow them to do so.
Figure 18. (Right) Via
which advertising channels
/publishers will your
company run ads this year
for the holiday season?
(Annual digital advertising
budget of >$5M vs. budget
of <$5M)
Pinterest reports that more
than 1.5 million companies5
use the platform to advertise
each month.
Advertisers are able to
target users with the classic
Promoted Pins in three
different ways: customer or
email list targeting, website
visitor retargeting, and
lookalike targeting, which
allows brands to access
people who fit the profile
of their already existing
audience.
Pinterest also allows
advertisers to utilize Promoted
Video ads, citing a 2016
internal study which found
that people who watch
Promoted Videos were 2.6
times more likely to make a
purchase after watching a
brand’s ad6
.
On the Pinterest mobile app,
brands can advertise with a
Promoted App Pin, allowing
users to download different
brands’ apps directly from the
Pinterest app.
Snapchat also has a unique
edge this year, having formed
a partnership with Amazon.
Here’s how it works: A
Snapchat user simply needs
to open the app and take a
photo of the desired item or
the item’s barcode. If the item
is available on Amazon, the
user can click through directly
to Amazon and make the
purchase.
25%
20%
15%
10%
0%
Pinterest
5%
Snapchat
Channel
>$5M <$5M
25% OF BRANDS
WITH AN
ANNUAL DIGITAL
MARKETING
BUDGET OF $5
MILLION OR MORE
WILL INVEST
IN PINTEREST
ADS THIS YEAR,
VERSUS JUST 9%
OF ADVERTISERS
WITH A SMALLER
BUDGET.
While marketers may need
time yet to adjust to this new
technology, the ability to shop
directly from social media
could certainly be a game
changer.
With a variety of marketing
opportunities and large
user bases—albeit fewer
than on Facebook or
Instagram—these smaller
platforms can be a crucial
element to a brand’s
marketing plan.
This sentiment is reflected in
ClickZ’s survey findings, which
revealed that 68% of brands
who spend on Pinterest
will also be increasing their
Google Search spending,
compared to 46% of the full
survey set.
Similarly, 74% of brands who
plan to invest in Snapchat ads
have increased their overall
budget since 2017. This
indicates a continued interest
in advertising on smaller
platforms. However, many
of these dollars are coming
from mature brands that can
already afford to spread and
maximize their bets.
Read on to the next section
for details about mobile’s
dominance and increased app
advertising.
5
https://business.pinterest.com/en/blog/250-
million-people-now-use-pinterest-each-month
6
https://business.pinterest.com/en/blog/the-
retailers-guide-to-awareness-campaigns-on-pinterest 23

27. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Mobile advertisers
should aim to create
consumer confidence by
providing better on-site
experiences.
“”
CINDY KRUM
CEO
MOBILEMOXIE

28. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
MOBILE LEADS
THE WAY
While brands are still
increasing spend on search
and social platforms for
desktop, mobile seems to
be where the money really
is.
73% of brands in our survey
believe that advertising on
mobile will be more important
than on desktop for sales
and 70% believe it will be
more important for brand
awareness, confirming that
mobile is not limited to only
certain tactics.
Rather, mobile is where
brands need to spend most of
their money, no matter their
marketing goals.
As Sissie Hsiao of Google
highlights, “Our experiences
with technology are becoming
universal (car, home, TV),
more natural (voice, Lens) and
more intelligent. As a result,
today’s consumer expects
brands to deliver experiences
that are helpful, personal, and
frictionless in everyday life.”
25

29. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Figure 19. Do you think
advertising on mobile
devices is more important,
less important, or about the
same for DRIVING SALES
during the holiday season,
compared to desktop?
Figure 20. Do you think
advertising on mobile
devices is more important,
less important, or about
the same for BRAND
AWARENESS during the
holiday season, compared
to a desktop?
That said, advertisers must
have the agility to adjust their
approaches in real-time to
reflect user behaviors.
Mobile-first does not mean
mobile-only, which can make
it challenging for advertisers
to plan their cross-device
strategy.
Christi Olson of Microsoft
notes that mobile usage
will increase at different
points during the day, across
different industry verticals.
Advertisers must ensure that
their approach is fluid and
delivered by the right tools
and technology to cater to
these changing consumer
needs.
Andrew Spikes, Head of
Global Paid Search at UPS,
adds, “For us, it’s having
a robust and accurate
view of your cross-device
conversions. For conversion
events that are less efficient
on mobile devices, specifically
for B2B purchases, it’s
important to know the role
that mobile has had on
desktop transactions.”
It is in this interplay of device
usage that brands will find the
most success. Even if mobile
dominates awareness or
sales, desktop will often play
a vital assisting role.
The lack of screen space on
mobile means consumer trust
in the brand comes to the
forefront, as fewer options are
displayed without intentionally
scrolling to the next set of
results.
Cindy Krum of MobileMoxie
states, “The mobile advantage
this holiday season will
go to brands that have
already worked to develop a
relationship with consumers.”
Slightly less
important
6.6%
Much more
important
39.9%
Slightly more
important
32.6%
About the
same
16.6%
Much less
important
4.3%
Slightly less
important
3.5%
Much more
important
38.8%
Slightly more
important
31.4%
About the
same
20.5%
Much less
important
5.8%
FOR LUXURY
BRANDS, MOBILE
IS FANTASTIC
FOR INITIAL
AWARENESS,
BUT DESKTOP IS
VITAL FOR BOTH
COMPARISON AND
PURCHASE.
- NIKOLAI
ZEINOKOV
HEINEKEN
“”
Just 26% of responding
brands state that they have
a standalone app. However,
that number rises dramatically
to 55% when looking at
brands with an annual
digital advertising budget
of $5 million or more. When
narrowed to all responding
retail brands, 42% say they
have a dedicated mobile app.
Naturally, these advertisers
will want to promote their
mobile app as part of their
holiday advertising strategy.
We see evidence of this in
increased spending on social
platforms and app advertising.
Facebook is the leader in
app advertising and Apple
trails behind in second, barely
edging out Google in third.
Where we might expect to
see Google as the leader
in this category also, app
marketers know to reach their
audiences through Facebook
and Apple instead. This
suggests that ads for apps
across the Google ecosystem
may be lagging somewhat
behind.
Figure 21. In which of the
following digital channels
do you advertise for your
mobile app? Please select
all that apply.
0% 10% 20% 30% 40% 50%
Facebook
Apple Search
Google Universal
App Campaigns
Display ads
(outside of apps)
Bing
In-app ads
Pinterest
Snapchat
26

30. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
It is important to bear in mind
the different advertising
capabilities that each platform
provides. Where Facebook
offers enviable reach and
branding opportunities, Apple
and Google ads run mostly
within their respective app
stores, targeting users as they
browse or search items to
download to their devices.
The advantage for Apple here
may very well stem from how
“the app store” has largely
come to mean the Apple App
Store, rather than, say, Google
Play.
However, it is worth
considering that this is not
an either/or decision for
many advertisers. These
different strengths become
complementary when
incorporated into a full-funnel
app advertising strategy.
For example, Facebook can
play to its strengths by acting
as an upper-funnel awareness
channel, while Apple and
Google can focus on direct
conversion within their
respective storefronts.
Chris Costello of Kenshoo
adds, “While social advertising
has always been a
primary channel for app
advertisers—Facebook,
Instagram and Snapchat
all do well in this
regard—we’re seeing more
scale from Google and Apple,
which gives advertisers more
opportunities to get in front of
potential customers closer to
the point of conversion in the
app stores themselves.
App advertisers have
always been particularly
sophisticated when it comes
to measuring acquisition
costs against broader metrics
like lifetime value, so they
KNOWING A LARGE
PORTION OF
TIME SPENT ON
SMARTPHONES
TODAY HAPPENS IN
APPS, DEVELOPERS
AND MARKETERS
ARE PARTNERING
TO GET SMARTER
ABOUT FINDING
WAYS TO MEET
CONSUMERS ON
THEIR OWN TURF.
- SISSIE HSIAO
GOOGLE
“”
are well-positioned to take
advantage of that increasing
opportunity.”
Sophisticated advertisers
are mirroring the multi-
channel purchase paths
of their audiences with a
cross-channel marketing
strategy. This applies to the
area of app advertising just
as it does to cross-device
targeting and to the
search-social dynamic.
27

31. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
Mobile set the stage for
consumer expectations,
and advances in data
and machine learning
are enabling a world
where technology is all
around us—not just a
physical device that we
carry.
“”
SISSIE HSIAO
VP OF PRODUCT
MOBILE APP ADVERTISING
GOOGLE

32. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
CONCLUSION
The holiday season is a
time for community and
togetherness, celebration
and laughter, charity and
generosity.
As the season of giving
inches closer, brand
marketers are vying for
consumers’ attention and
dollars. According to ClickZ
and Kenshoo’s survey results,
we can conclusively say that
digital marketing spending
is on the rise and growing
more diverse, utilizing what
has worked in the past while
experimenting with new
opportunities as well.
As brands build upon a solid
marketing foundation that
has shown success in the
past, we expect to see a
shift in just how marketers
plan to deliver on acquisition
goals, using a more fluid
combination of spending on
search and social. We’ll see
a lot of advertiser activity
on the big platforms such
as Google, Facebook, and
Instagram. Retail marketers in
particular plan to go Amazon-
heavy, taking advantage of
major online shopping days
and events.
While past data is giving
brand marketers an idea
of how to use the most
popular channels for regular
marketing over the next
couple months, channels
and opportunities such as
Snapchat, Pinterest, and
Stories will see marketing
dollars as well, attracting
users and consumers from all
sides.
Marketers have an
opportunity this year to
adapt to and experiment
with innovative marketing
methods. The success of
these experiments will be
dictated by the snappers, the
shoppers, and the scrollers.
Analyzing what causes users
to pause and notice an ad
this year will help brand
marketers plan for the future,
predicting user habits and
preferences. Until then,
advertisers march onward,
hoping to reap the benefits
of consumer generosity this
holiday season.
29

33. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
KEY TAKEAWAYS
Based on the ClickZ survey
and interviews with leading
brands, advertisers, and
publishers, it is clear that
this holiday season will
both consolidate existing
trends and create entirely
new ones in the digital
world.
With so much to take account
of, the following is a handy
summary of the eight core
trends that will shape the
advertising landscape over
the coming months.
30

34. DIGITAL ADVERTISING TRENDS
2018 HOLIDAY SEASON
The big players will maintain their positions
At a time that can make or break a company’s year, advertisers are understandably
standing by what worked for them last year. 78% of responding brands will run ads via
Google Search, while 72% will invest in Facebook ads. That said, new opportunities
still arise within these platforms. Search advertisers are shifting more budget towards
remarketing and audience-based targeting, while visual search continues to emerge.
The Facebook / Instagram combination is compelling for advertisers
50% of brands advertising on Facebook over the holidays will increase their budget
from 2017, and just 8% plan to spend less. 45% of all responding brands will spend
on Instagram ads. Of those who spend on Instagram, an overwhelming 94% will also
run ads on Facebook. The Facebook / Instagram coverage of the social landscape is
compelling for both users and advertisers.
Search and social will work together to deliver on conversion goals
Where search may once have been viewed as the core sales driver and social the
queen of engagement, advertisers now see both as vital components of an acquisition
strategy. 36% say their conversion goals will be the driving force behind their social
strategy this holiday season, compared to 30% for search strategies. The interplay
between the two will help advertisers both create and capture demand.
Amazon Advertising means big business for retailers
Brands who plan to run Amazon ads will dedicate 21% of overall budget to this
channel, second only to Google Search at 33%. Moreover, 82% of these advertisers
will create Christmas-specific campaigns, and 67% will run dedicated campaigns for
Black Friday. For retailers in particular, holiday advertising means investing in Amazon
this year.
Stories formats point to a new potential future
Of the new advertising opportunities available in 2018, advertisers are gravitating
towards Facebook Stories (38% will invest in this format) and Instagram Stories
(37%). Facebook has long extolled the virtues of Stories and advertisers appear to be
listening. The possibilities are not lost on our survey respondents, many of whom view
new ways to tell stories as the key to connecting with consumers in the coming months
and years.
The holidays still provide room for experimentation
Although advertisers may be drawn to conservatism at such a pivotal time of year, many
are still leaving room in their plans to try something completely new. This is notable
among brands with annual digital marketing budgets of $5 million or more. 19% of
this subset will spend on Pinterest, compared to 9% of brands in the full survey set.
Nonetheless, some smaller advertisers say they will set aside “roughly 10%” of their
budget to try to go where their audience is active and their competitors are not.
Mobile is huge—but desktop isn’t going away
73% of responding brands believe mobile will be “more important” or “much more
important” than desktop for sales this holiday season. Just 10% believe desktop will
be the primary device for sales. However, these purchasing patterns are affected
by numerous factors including time of day, item price, and product category. Savvy
advertisers will pace their budgets accordingly and look into their data before
prioritizing one device over another.
Real-time optimization is essential for success
Last year’s performance data offers vital insight into how this year will go, but it offers
no guarantees that the same series of events will occur. Advertisers need to look
beyond their analytics dashboards to understand the current climate and project how it
will affect consumers. Next, they must use the right technology to respond to real-time
increases in impressions across platforms and devices. This precise and agile approach
will allow brands to maximize the sales potential of such a crucial period.