John Waghorn

Paid Search and Mobile Spend Increases during First Quarter of 2012

11th Apr 2012 PPC Blog 2 minutes to read

SmartphoneSearch marketers will be pleased to know that paid search and mobile spend has increased during the first quarter of 2012, when compared to the same time last year.

Firstly, looking at search spend, the statistics compiled by the Adobe Systems Global Digital Advertising Q1 2012 Update show that spend increased 16% in the US and 3% in the UK. Obviously the improvements highlighted are greater in the US, although both generated an increased ROI of 11% and 5% retrospectively, which is a positive sign for online advertising moving forward into the second quarter of the year.

The figures show that there is room for even more spend in the coming months for companies who want to generate an improved amount of traffic to their site. In the US, the sectors that have increased their spend year-on-year include finance and automotive, whilst in contrast, the retail industry dropped by 5%. Overall, however, the current state of the market looks to be a healthy one.

The statistics for search spend on mobiles have seen a greater improvement, increasing 250% year-on-year in the UK. The same report states that during the first quarter of 2012, mobile spend accounted for 8% of all search spend in the US, and in the UK the amount was slightly better at 11%. Tablets equated for 4.25% of this spend alone due to the lower amount companies pay for each Cost per Click (CPC) via tablet devices when compared to the desktop computer.Traffic on mobile devices is improving as a result of the introduction of better technologies allowing mobile browsing on the Internet. The Tablet and Smartphone devices are prime examples, and with such positive statistics, there is now a greater incentive for advertisers to add search investments to these devices to attract more users.

Moving forward it is believed that search via mobile, as well as tablet, will continue to improve and have a positive effect on the growth of search spend around the world. The predictions for the rest of the year, Q2 – Q4, say that mobile and tablet will once again take a larger percentage of the overall search spend by the end of the year, believed to be around 15-20%. A separate study by Marin Software reported on Search Engine Watch predicted that mobile devices will account for 25% of paid search clicks on Google by the end of 2012.

The statistics reinforce the idea that businesses should focus their attention on marketing for mobile and tablet devices, alongside other marketing techniques, as there will be increasing opportunities in which to invest. Currently there are not enough companies who are taking hold of the market and attracting their potential customers that use these devices on a daily basis.

Mobile search spend has improved year-on-year, so inevitably businesses should take advantage of advertising on multiple channels, which will help to improve traffic and potentially conversions too.

Image Source

Modern Smartphone With Application Icons via BigStock

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John Waghorn

John used to be in a band. Hey, if he can still go on about it, so can we! He’s an Apple Sour drinker, a positive thinker and we’re always mesmerised by how he styles his hair. Answers on a postcard if you think you know how he does it.

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