Each quarter, Search Engine Watch receives a number of reports from analysts in the online advertising space. Typically, the actual numbers vary, though looking at the figures as a whole helps marketers identify trends that can be helpful in strategizing for the coming quarter.
Covario just released their Q1 Global Paid Search Spend Analysis report, hot on the heels of the Adobe Systems Global Digital Advertising Q1 2012 Update and IgnitionOne Global Online Advertising Report, both of which we covered last week. Both Marin Software and the Rimm-Kaufman Group (RKG) just published their Q1 reports, the U.S. Online Advertising Report (Marin) and the Digital Marketing Report for Q1 2012 (RKG).
Covario’s analysis, which focuses on activity in the high-tech and consumer electronics sectors, showed a 15 percent YoY increase in PPC ad spend in the Americas, in line with the general trend shown by other analysts. In addition, they reported an 88 percent YoY increase in spend in the Asia-Pacific region, with a 2 percent decline in Europe (attributed to ongoing macroeconomic pressures).
In their report, RKG found that total paid search spend grew at 30 percent YoY in Q1 2012. Mobile comprised 12 percent of all organic search visits in Q1 and 13 percent of all paid search clicks. They also report that the tablet share of PPC nearly quadrupled from Q1 2011, and the iPad alone accounted for nearly 7 percent of all clicks.
Marin Software also found that increased click volume (46 percent higher YoY) more than made up for lower CPCs, with resultant robust growth in Google ad budgets leading to higher spend. This is in line with other reports. They point to algorithm changes, advanced match types, site links and mobile devices as potential reasons for the CPC decline.
So what sense can paid search marketers make of these trends? Analysts from each reporting company offered some tips for Search Engine Watch readers.
RKG data shows Google's Product Listing Ads format exhibiting huge traffic growth. In their report, they note, “...traffic to Google’s Product Listing Ads format continued its own surge, representing 11% of Google clicks, but PLAs commanded 18% lower CPCs than standard text ads.”
“While the revenue per click of PLAs is on par with standard text ads, our advertisers are paying significantly lower CPCs,” said Senior Research Analyst Mark Ballard. “This suggests competition for PLAs remains relatively low, making them a great opportunity to pick up incremental traffic at a good value.”
Dr. Siddharth Shah, Director of Analytics with Adobe Digital Marketing Business, told us, “With the growing impact of social as a marketing channel as well as the rapid increase in mobile device/tablet usage, the average consumer touches more devices and channels than ever before.” He recommends, “It is imperative for advertisers to measure the consumer path across the entire sales funnel and apply the right attribution to determine the correct media mix.”...Read More
Covario just released their Q1 Global Paid Search Spend Analysis report, hot on the heels of the Adobe Systems Global Digital Advertising Q1 2012 Update and IgnitionOne Global Online Advertising Report, both of which we covered last week. Both Marin Software and the Rimm-Kaufman Group (RKG) just published their Q1 reports, the U.S. Online Advertising Report (Marin) and the Digital Marketing Report for Q1 2012 (RKG).
Covario’s analysis, which focuses on activity in the high-tech and consumer electronics sectors, showed a 15 percent YoY increase in PPC ad spend in the Americas, in line with the general trend shown by other analysts. In addition, they reported an 88 percent YoY increase in spend in the Asia-Pacific region, with a 2 percent decline in Europe (attributed to ongoing macroeconomic pressures).
In their report, RKG found that total paid search spend grew at 30 percent YoY in Q1 2012. Mobile comprised 12 percent of all organic search visits in Q1 and 13 percent of all paid search clicks. They also report that the tablet share of PPC nearly quadrupled from Q1 2011, and the iPad alone accounted for nearly 7 percent of all clicks.
Marin Software also found that increased click volume (46 percent higher YoY) more than made up for lower CPCs, with resultant robust growth in Google ad budgets leading to higher spend. This is in line with other reports. They point to algorithm changes, advanced match types, site links and mobile devices as potential reasons for the CPC decline.
So what sense can paid search marketers make of these trends? Analysts from each reporting company offered some tips for Search Engine Watch readers.
Take Advantage of Google Product Listing Ads’ Lower CPCs
RKG data shows Google's Product Listing Ads format exhibiting huge traffic growth. In their report, they note, “...traffic to Google’s Product Listing Ads format continued its own surge, representing 11% of Google clicks, but PLAs commanded 18% lower CPCs than standard text ads.”
“While the revenue per click of PLAs is on par with standard text ads, our advertisers are paying significantly lower CPCs,” said Senior Research Analyst Mark Ballard. “This suggests competition for PLAs remains relatively low, making them a great opportunity to pick up incremental traffic at a good value.”
Attribute Conversions Across Channels & Devices to Maximize ROI
In their quarterly report, Adobe reported a 93 percent YoY increase in Facebook ad spend; they noted that this one channel now represents between 3 to 5 percent of total search spend. Social media, they said, continues to be a strong digital advertising channel.Dr. Siddharth Shah, Director of Analytics with Adobe Digital Marketing Business, told us, “With the growing impact of social as a marketing channel as well as the rapid increase in mobile device/tablet usage, the average consumer touches more devices and channels than ever before.” He recommends, “It is imperative for advertisers to measure the consumer path across the entire sales funnel and apply the right attribution to determine the correct media mix.”...Read More
ReplyDeleteI have read your blog its very attractive and impressive. I like it your blog.
Social Media Marketing Agency Social Media Marketing Services