Search Ad Spending rises 23 percent in last Quarter

Search Ad Spending rises 23 percent in last Quarter

18th January 2011

It feels like the year has only just started, and in fact the first Quarter is only a few weeks old, but the first signs of how we are doing in the New Year are already here, at least, if we look at what went on in 2010. In the last Quarter of 2010. compared to how we did the year before, Ad Spending in Search is up no less than 23%.

The latest report from Efficient Frontier (download here) shows us that search is rising in all sectors they track. All of them show a huge gain over at least 10% in spending.

Some of the sectors they highlighted:

  • Retail: Spend was up 18% YoY on CPC gains as well as increased consumer demand
  • Travel: Spend was up 42% YoY on CPC and click through rate gains
  • Finance: Spend was up 30% YoY on CPC gains
  • Auto: Spend was up 33% YoY on CPC gains as well as increased in consumer demand

With the upcoming numbers of Google coming up this Thursday this is good news for the search giant, as it is expected that Google will announce a 22 percent increase in sales.

Part of the reason why Google sees this increase according to Efficient Frontier is the fact that Yahoo and Bing joined forces. They however also believe that Bing and Yahoo will be major players. Especially smaller and medium sized advertisers with increased budgets will be looking at the new platform.

Efficient Frontier also expects Display and Social Media will be growing in 2011, especially Facebook.

In another study, in which they look at tools and practices for search, Efficient Frontier finds that Search and display are the most widely used online marketing channels. “More than one-quarter of respondents spend 50% or more of their total marketing budget on these two channels.”

Written By
Bas van den Beld is an award winning Digital Marketing consultant, trainer and speaker. He is the founder of State of Digital and helps companies develop solid marketing strategies.
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