Growth Slows For Paid Search Spend
Clicks also slowed to 13.2% in Q2 2012, compared with 29.1%, in the prior quarter. Click-through rates came in flat year on year, ending an upward trend. Impressions, however, grew faster than last quarter with a 13.7% increase year on year, compared with 7.2%, sequentially.
The cost per click (CPC) rose 2.1% year on year, but clicks on Google fell slightly to 3.1%. The IgnitionOne report points to an increasing reliance on mobile paid search ads that support less expensive clicks, as well as new ad formats generally lower in price.
Yahoo and Bing experienced a 24.3% jump in CPCs, which the report suggests continues a sequential shift toward the two companies touting best practices. It has led to greater competition in auctions through the rise of broad match keywords used as stepping stones to highlight other match types.
The report points to a shift in market share during Q2. Google holds 79% of share, compared with the Yahoo and Bing alliance at 21%, representing a 1% point year-on-year uptick for the quarter. Marketers increased the ad spend with Yahoo and Bing by nearly 33% year on year, which tops Google's 11% growth.
Google's push toward mobile devices, as well as search and display advertising will clearly pay off. Mobile search ad spending rose 333% year on year. Mobile search ads also had greater growth in engagement as click grew 325%, while impressions grew 130%.
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