SEM Continues Seeing Healthy Growth in Q1 of 2013

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Advertisers Continue Spending and Users Continue Searching as Q1 2013 Kicks Off to a Healthy Start

The digital space is certainly a growing advertising marketplace. As marketers, so focused on crafting the perfect bids, campaigns and consumer journeys for our audiences, we can often lose sight of the macro-level trends developing around us. The Search Agency’s State of Paid Search Report summarizes current paid search marketing trends across search engines, devices, and industries to give you eyes into where our industry is headed.

To uncover key trends of Q1 2013, the agency extracted client data from search engine advertising tools. The sample included advertisers who had fifteen consecutive months of data with The Search Agency and an established and stable business model from Q1 2012 to Q1 2013. All results are based on U.S. campaigns only. Our findings and forecasts are based on year-over-year (YoY) and quarter-over-quarter (QoQ) analyses on aggregated client data that includes:

  • Overall, search engine advertising demonstrated healthy growth–Paid search advertising continues to experience healthy growth—overall impressions increased 4%, click-through rate increased 15%, and clicks increased 11.7% YoY.
  • Advertisers spent 20.1% of their search budget on smartphones and tablets, which is a 37% increase in share of spend on smartphones and tablets YoY. Overall, spend increased 68% on smartphones and 135% on tablets YoY.
  • Google spend increased 17% YoY, driven by a 9% increase in clicks and a 7.5% increase in CPC YoY. Bing spend increased by 42% as a result of a 7.4% increase in CPC YoY, and CTR increased 46% YoY
  • Smartphone CPCs decreased 10.4% and tablet CPCs increased 19% YoY, demonstrating the shrinking CPC discount from desktop on tablets and growing CPC discount from desktops on smartphones.

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TOPIC: Search Engine Marketing

HIGHLIGHT: SEM Trends – Q1 2013