Q1 Report Search Ad Spend
Expenditure in the search market through mobile devices rose by 250 % during 2012 first quarter, as compared with 2011. However, total growth of the search market is relatively low in the UK, when compared with the US (2 % vs. 16 %), probably due to the slow economic recovery Europe is undergoing. This situation has an impact on sectors that account for a great percentage of total expenditure in the search market, for example, tourism.
One of the main reasons for the increase in expenditure is to be attributed to tablets, since the cost per click is disproportionately low, while maintaining similar conversion rates with desktop computers.
The first quarter study for 2012 indicates that CPCs have experienced a different development depending on the search engine involved. CPCs in Google have gone down 5 %, while they have risen by 18 % in Yahoo/Bing and their “Search Alliance”, and therefore, the existing differences in terms of ROI have disappeared.
Finally, social networks stand out as an emerging market, especially Facebook, were the increase in YoY expenditure reaches 93 %. Today, Facebook and its advertising platform account for 3 to 5 % of total expenditure in the search market.