Q1 2018

Paid Search and Paid Social

Benchmark Report
 Welcome
The year started with an optimistic outlook for great returns from paid advertising, and
so far that’s proven to be the case. As the industry faces increased scrutiny around data
practices and marketers adapt to policy changes, we expect that 2018 will present its
own set of challenges. How advertisers react to those challenges will drive digital
strategies for the remainder of the year.

At AdStage we understand paid advertising metrics. We publish our benchmark report

as an indicator for where the market is headed and provide insights into where your ad
dollars have the most impact.

JD Prater
Director of Growth Marketing, AdStage

Q1 2018 Paid Search and Paid Social Benchmark Report

 Contents
FACEBOOK
News Feed

Audience Network

Messenger

INSTAGRAM

LINKEDIN

TWITTER

GOOGLE SEARCH NETWORK

GOOGLE DISPLAY NETWORK

YOUTUBE

BING ADS

Q1 2018 Paid Search and Paid Social Benchmark Report

 FACEBOOK

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook News Feed Placement Q1 2018

In Q1 2018, we analyzed over 3 billion desktop and mobile New Feed placement ad
impressions and 80 million clicks. Among advertisers on the AdStage platform, the
median CPM was $11.20, CPC was $0.48, and CTR was 2.36%.

Key metrics decreased across the board after a year of increases for both CPC and CPM,
while click through rates remained consistent from Q4 2017.

Key Takeaways
● CTR on Facebook ads decreased by 0.84% since Q4 2017
● CPC on Facebook ads decreased by 12.7% since Q4 2017
● CPM on Facebook ads decreased by 12.5% since Q4 2017

$11.20
Q1 CPM
$0.48
Q1 CPC

2.36%
Q1 CTR

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Placement Q1 Benchmarks

Facebook refocused its effort to make the News Feed more personal, signaling they will
be showing more relevant ads. While many thought there would be a drastic drop in
engagement, the data proves that targeted advertising still provides results.

Among AdStage advertisers, Q/Q CTR rates remained consistent, dropping 0.84% in Q1.
Retaining the Q4 2017 increase we observed in after the two quarters of declines in 2017.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Placement Q1 Benchmarks

Q1 CPCs decreased slightly 12.73% Q/Q compared to Q4 2017, but continue the upward
trend we observed in 2017 with a 92% Y/Y gain.

Facebook News Feed continues to be one of the most affordable placement

opportunities and prices look to be stabilizing in the short term.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Placement Q1 Benchmarks

Facebook placement CPMs dropped 12% after a year of Q/Q gains. Although still up 91%
Y/Y, CPM remains a strong indicator of audience quality and size.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Audience Network Q1 2018

In Q1 2018, we analyzed over 390 million ad impressions and 5 million clicks on the
Facebook Audience Network. Among advertisers on the AdStage platform, the median
CPM was $2.41, CPC was $0.19, and CTR was 1.32%.

CTR Y/Y decreased 50.2%, continuing the trend we observed in 2017. While CPC
decreased 27% Q/Q, Q1 ended 46% higher Y/Y from Q1 2017. CPM decreased for the
second quarter in a row, dropping 36.7% Q/Q, ending the quarter down 29% Y/Y.

Key Takeaways
● CTR on Audience Network ads decreased by 4.1% since Q4 2017
● CPC on Audience Network ads decreased by 26.9% since Q4 1017
● CPM on Audience Network ads decreased by 36.7% since Q4 2017

$2.41
Q1 CPM
$0.19
Q1 CPC

1.32%
Q1 CTR

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Audience Network Q1 Benchmarks

Q1 marks three quarters of relatively stable CTRs, ending the quarter slightly down from
Q4 2017. CTRs are down 50% Y/Y, but continue to remain strong at 1.32%.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Audience Network Q1 Benchmarks

Q1 CPCs dropped for the second quarter in a row, but remain 46.3% higher Y/Y. With
stable CTRs and lower click prices, advertisers will find it easier to identify trends and
forecast Audience Network performance.

We suspect that increased use of the Automatic Placement feature has contributed to
better optimization and lower costs.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Audience Network Q1 Benchmarks

As seen with CPCs, CPMs have also dropped for the second quarter in a row, ending 29.3%
lower Y/Y. This is the largest drop in CPMs that we’ve seen in recent history on the
Audience Network.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Messenger Q1 2018

In Q1 2018, we analyzed 80 million ad impressions and over 400K clicks on Facebook

Messenger. Among advertisers on the AdStage platform, the median CPM was $5.91, CPC
was $1.09, and CTR was 0.54%.

With two full quarters of Messenger ad data we are beginning to see variability in
engagement while reach costs remain steady.

Key Takeaways
● CTR on Facebook Messenger ads decreased by 62% since Q4 2017
● CPC on Facebook Messenger ads increased by 137% since Q4 1017
● CPM on Facebook Messenger ads decreased by 1.5% since Q4 2017

$5.91
Q1 CPM
$1.09
Q1 CPC

0.54%
Q1 CTR

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Messenger Q1 Benchmarks

We expect that Messenger will continue to have varying performance as advertisers

continue to optimize and test the placement. While CTRs dropped 62%, we cannot
determine if this was due to seasonality or is an indicator of a longer trend.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Messenger Q1 Benchmarks

Q1 2018 CPCs spiked over the last quarter, but remain to be priced in line with the quality
of users engaged with Messenger ads.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Facebook Messenger Q1 Benchmarks

Q1 2017 CPMs remained stable, dropping 1.5% from the previous quarter. As with CPCs
and CTRs, we expect that reach performance will vary from quarter to quarter as
advertisers dial in their Messenger strategies.

Q1 2018 Paid Search and Paid Social Benchmark Report

 INSTAGRAM

Q1 2018 Paid Search and Paid Social Benchmark Report

 Instagram Q1 2018

In Q1 2018, we analyzed over 390 million ad impressions and 5 million clicks on the
Facebook Audience Network. Among advertisers on the AdStage platform, the median
CPM was $2.41, CPC was $0.19, and CTR was 1.32%.

CTR Y/Y decreased 50.2%, continuing the trend we observed in 2017. While CPC
decreased 27% Q/Q, Q1 ended 46% higher Y/Y from Q1 2017. CPM decreased for the
second quarter in a row, dropping 36.7% Q/Q, ending the quarter down 29% Y/Y.

Key Takeaways
● CTR on Instagram ads increased by 37% since Q4 2017
● CPC on Instagram ads decreased by 45.8% since Q4 1017
● CPM on Instagram ads decreased by 20% since Q4 2017

$7.91
Q1 CPM
$1.41
Q1 CPC

0.52%
Q1 CTR

Q1 2018 Paid Search and Paid Social Benchmark Report

 Instagram Q1 Benchmarks

Instagram continues to deliver great engagement performance. A slight drop in Q4 has

been corrected in Q1 2018, ending the quarter up 41% Y/Y.

Better CTAs, shopping, and video features have allowed advertisers to continue to find
new ways to engage with their audiences and provide value in the ads they are delivering.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Instagram Q1 Benchmarks

Q1 CPCs dropped 45.8% from a spike in Q4, and ended 33.6% lower Y/Y.

We continue to see increased variability in Instagram CPCs as new ad types and features
are introduced into the mix.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Instagram Q1 Benchmarks

Instagram CPMs deceased 20.1% since Q4 2017, ending 5.8% down Y/Y.

CPMs continue to show variability quarter to quarter and we expect to see them remain in
the $8 - $10 range.

Q1 2018 Paid Search and Paid Social Benchmark Report

 LINKEDIN

Q1 2018 Paid Search and Paid Social Benchmark Report

 LinkedIn Q1 2018

In Q1 2018, we analyzed over 2.5 billion ad impressions and over 3 million clicks on
LinkedIn. Among advertisers on the AdStage platform, the median CPM was $6.59, CPC
was $5.26, and CTR was 0.13%.

CTR Y/Y increased 58%, continuing the trend we observed in 2017. While CPC decreased
11.6% Y/Y. Q1 CPM decreased 17.6% after four straight quarters of increases, but remains
up 29% Y/Y.

Key Takeaways
● CTR on LinkedIn ads decreased by 26% since Q4 2017
● CPC on LinkedIn ads increased by 3.6% since Q4 1017
● CPM on LinkedIn ads decreased by 17.6% since Q4 2017

$6.59
Q1 CPM
$5.26
Q1 CPC

0.13%
Q1 CTR

Q1 2018 Paid Search and Paid Social Benchmark Report

 LinkedIn Q1 Benchmarks

LinkedIn CTRs decreased 26% Q/Q but remain 58% higher Y/Y in Q1 2018. Although
advertisers experienced lower CTRs this quarter versus Q4, we believe the Q4 spike was
mostly due to high B2B engagement during end of year vendor reviews. Q1 CTRs
continue the overall upward trends we’ve observed through 2017.

Q1 2018 Paid Search and Paid Social Benchmark Report

 LinkedIn Q1 Benchmarks

CPCs increase slightly in Q1 versus Q4, but remain 11.6% lower Y/Y, more than $1.00 lower
than the peak median CPC of $6.31 in Q3 2017.

Q1 2018 Paid Search and Paid Social Benchmark Report

 LinkedIn Q1 Benchmarks

Q1 CPMs ended 17.6% lower than Q4 2017. As with CTRs, we expect the spike in Q4 was an
anomaly and the median CPM of $6.59 in Q1 is more inline with the trend we observed in
2017.

Q1 2018 CPMs ended 29.3% higher Y/Y.

Q1 2018 Paid Search and Paid Social Benchmark Report

 TWITTER

Q1 2018 Paid Search and Paid Social Benchmark Report

 Twitter Q1 2018

In Q1 2018, we analyzed over 300 million ad impressions and over 6 million clicks on
Twitter. Among advertisers on the AdStage platform, the median CPM was $6.46, CPC
was $0.38, and CTR was 1.51%.

CTR Y/Y increased 72%, continuing the positive trend we observed in 2017. While CPC
increased 6.1% Q/Q, Q1 ended 35% lower Y/Y from Q1 2017. CPM increased for the
second quarter in a row, up 7.6% Q/Q, adding to the overall Y/Y 24% increase.

Key Takeaways
● CTR on Twitter ads decreased by 26% since Q4 2017
● CPC on Twitter ads increased by 3.6% since Q4 1017
● CPM on Twitter ads decreased by 17.6% since Q4 2017

$6.46
Q1 CPM
$0.38
Q1 CPC

1.51%
Q1 CTR

Q1 2018 Paid Search and Paid Social Benchmark Report

 Twitter Q1 Benchmarks

Twitter CTRs ended slightly lower, 8.9% down from Q4 2017, but remain 72% higher Y/Y.

We expect to see CTRs above 1% through the next quarter, but it’s too early to determine
if this will be a trend throughout 2018.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Twitter Q1 Benchmarks

Twitter CPCs remain low, down 35% Y/Y. Although we observed a slight increase over the
last two quarters, we don’t expect CPCs to return to 2017 highs anytime soon.

Twitter remains to be a cost effective placement for targeted engagement and brand
interaction.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Twitter Q1 Benchmarks

Increased engagement and better reach metrics lead to increased CPMs.

Q1 2018 CPMs ended up 7.59% Q/Q, and 29% higher Y/Y. An increase in prices for the
second quarter in a row.

Q1 2018 Paid Search and Paid Social Benchmark Report

 GOOGLE ADWORDS

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google Search Q1 2018

In Q1 2018, we analyzed over 110 million ad impressions and over 5 million clicks on
Google Search. Among advertisers on the AdStage platform, the median CPM was
$116.91, CPC was $2.76, and CTR was 4.23%.

CTR Y/Y decreased 47%, while CPC increased 117% Y/Y. Q1 CPM ended 13% higher Y/Y
from Q1 2017.

Key Takeaways
● CTR on Google Search ads decreased by 49% since Q4 2017
● CPC on Google Search ads increased by 203% since Q4 1017
● CPM on Google Search ads increased by 48.6% since Q4 2017

$116.91
Q1 CPM
$2.76
Q1 CPC

4.23%
Q1 CTR

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google Search Q1 Benchmarks

Search CTRs decreased for the first time in three quarters, down 47% Y/Y. While the
median CTR of 4.23% we observed is well below the 2017 average, we don’t expect this is
the new normal.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google Search Q1 Benchmarks

Q1 2018 CPCs spike, ending 117% up Y/Y, reversing the nice downward trend from the
second half of 2017.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google Search Q1 Benchmarks

Q1 2018 CPMs returned to previous levels after a dip in Q4, ending the quarter up 13% Y/Y.

Q1 2018 Paid Search and Paid Social Benchmark Report

 GOOGLE DISPLAY NETWORK

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google Display Network Q1 2018

In Q1 2018, we analyzed over 760 million ad impressions and nearly 3 million clicks on
Google Display Network. Among advertisers on the AdStage platform, the median CPM
was $2.80, CPC was $0.75, and CTR was 0.35%.

CTR Y/Y decreased 27%, while CPC increased 83% Y/Y. Q1 CPM ended 51% higher Y/Y
from Q1 2017.

Key Takeaways
● CTR on Google Search ads decreased by 22% since Q4 2017
● CPC on Google Search ads increased by 34% since Q4 1017
● CPM on Google Search ads increased by 12% since Q4 2017

$2.80
Q1 CPM
$0.75
Q1 CPC

0.35%
Q1 CTR

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google Display Network Q1 Benchmarks

After two consecutive quarters of increasing Display Network CTRs, Q1 dropped 22% Q/Q
and 27% Y/Y.

We expect advertisers to continue seeing CTRs in the range of 0.3% to 0.5%.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google Display Network Q1 Benchmarks

Q1 CPCs are up 34% Q/Q and 83% Y/Y, continuing the upward trend in costs we observed
in 2017.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google Display Network Q1 Benchmarks

CPMs continue to remain stable over the past two quarters, up slightly at 12% Q/Q.
Q1 2018 CPM Y/Y increased 51%.

Q1 2018 Paid Search and Paid Social Benchmark Report

 YOUTUBE

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google YouTube Q1 2018

In Q1 2018, we analyzed over 330 million ad impressions and over 1 million clicks on
YouTube Among advertisers on the AdStage platform, the median CPM was $9.68, CPC
was $3.21, and CTR was 0.33%.

YouTube CTR Y/Y increased 22%, while CPC decreased 27% Y/Y. Q1 YouTube CPM
ended 15% lower Y/Y from Q1 2017.

Key Takeaways
● CTR on YouTube ads increased by 18% since Q4 2017
● CPC on YouTube ads decreased by 25% since Q4 1017
● CPM on YouTube ads decreased by 20% since Q4 2017

$9.68
Q1 CPM
$3.21
Q1 CPC

0.33%
Q1 CTR

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google YouTube Q1 Benchmarks

YouTube CTRs increased slightly in Q1, up 17.86% Q/Q and 22% Y/Y.
The Q1 median CTR remains below the 2017 high of 0.37%, and we expect that CTRs will
continue to fall between 0.25% and 0.35%.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google YouTube Q1 Benchmarks

Q1 2018 CPCs dropped after an increase in Q4, ending the quarter down 27% Y/Y.

We expect to see median CPCs stabilize through the next quarter as YouTube advertisers
optimize their spend.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Google YouTube Q1 Benchmarks

YouTube Q1 CPMs decreased 15% Y/Y, reversing an upward trend in Q4. It’s too early to
determine if this lower CPM is normal or an overcorrection of pricing reach.

Q1 2018 Paid Search and Paid Social Benchmark Report

 BING ADS

Q1 2018 Paid Search and Paid Social Benchmark Report

 Bing Ads Q1 2018

In Q1 2018, we analyzed over 39 million ad impressions and over 1 million clicks on Bing.
Among advertisers on the AdStage platform, the median CPM was $94.34, CPC was $3.36,
and CTR was 2.50%.

Bing ads CTR Y/Y increased 3.3%, while CPC decreased 0.9% Y/Y. Q1 Bing ads CPM
ended 22% higher Y/Y from Q1 2017.

Key Takeaways
● CTR on Bing ads increased by 3% since Q4 2017
● CPC on Bing ads decreased by 1% since Q4 1017
● CPM on Bing ads increased by 14% since Q4 2017

$94.34
Q1 CPM
$3.36
Q1 CPC

2.50%
Q1 CTR

Q1 2018 Paid Search and Paid Social Benchmark Report

 Bing Ads Q1 Benchmarks

Bing CTRs increased for the second quarter in a row, up 3.3% Y/Y. While median CTRs
remain below the 2017 high of 2.61%, we expect to see additional increases in 2018.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Bing Ads Q1 Benchmarks

After two quarters of increased CPCs in 2017, we have observed the second quarter of
declining cost per clicks, ending the quarter 0.9% down Y/Y.

Q1 2018 Paid Search and Paid Social Benchmark Report

 Bing Ads Q1 Benchmarks

Bing CPMs increased 13.7% Q/Q in Q1 2018, ending 22% up Y/Y. While Bing remains to be
more cost effective than Google Search, increasing CPMs may have advertisers
reconsidering budget allocation.

Q1 2018 Paid Search and Paid Social Benchmark Report

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