Report: Global PPC Spend Rises 15% On Higher Click Volume And Click-Through Rates In Q1

Global search ad spend rose 15% in Q1 2013 versus the previous year, according to the Kenshoo Global Search Advertising Trends report released today. That rise in spend was driven largely by a 62% increase in click-through rates and a 21% increase in clicks year-over-year.

 

Kenshoo Global CTR Q113 U.S. ad spend rose 24%, spurring the overall global increase. However, PPC spend fell 4% in the E.U. and 11% in the U.K. CPCs fell in both the U.S. and U.K and remained relatively flat for continental Europe. CPCs in the U.S. continued to be higher, at $0.44, than the U.K. at $0.38 USD. Kenshoo CPC Trends Q1 2013The report highlights that fairly significant cost efficiencies still exist on smartphones as mobile CPCs have not kept pace with the surge in mobile click volume. In the U.S., computer and tablet click-to-spend ratios were fairly even, yet phone clicks accounted for 8.7% of total paid search clicks and only 5% of total spend. In the U.K., phone CPCs were 33% lower than computer and tablet and accounted for 11.5% of total clicks and just 7.8% of total spend. Mobile Phone Share KenshooIn all, 2012 paid search ad spend increased 32% versus 2011, and Kenshoo points to  Q1′s 15% rise in global ad spend as a positive sign for the remainder of 2013.

Related Topics: Channel: Strategy | Stats | Stats: General | Stats: Spend Projections | Top News

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About The Author: writes about paid online marketing topics including paid search, paid social, display and retargeting. Beyond Search Engine Land, Ginny provides search marketing and demand generation advice for ecommerce companies. She can be found on Twitter as @ginnymarvin.

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  • Anatoly Aleksandrovich

    Good job Google! Now, let’s create a few more Penguin & Panda updates, so we can move up low quality sites and force decent sites and businesses to move to PPC.

  • Lee

    Its not surprising companies are being forced to go back to paid search and Gs profits are up. This is a reflection of the amount of businesses that have been penalised by the recent algorithm updates. Its certainly not wise to have all eggs in one basket!

  • http://twitter.com/JuntaeDeLane Juntae DeLane

    Great point Lee!

  • http://ftc.gov/ MonopolizedSearch

    I think its host crowding that is really turning many webmasters off. I’ve counted 50+ occurrences of the same domain in the top 100 search results for one query. Diversity has been tossed out the door. Few will rank in the top 100 when those positions are occupied by just 20 or 30 sites. And without surprise, it’s mostly small business websites that are nowhere to be found.

  • Rajesh

    Absolutely correct Lee, The updates are one of the major reasons why paid ad spend has increased, In fact business are forced to increase their paid advertising budget, obviously by Google

  • http://twitter.com/buildforsearch Alex – BFS

    I believe there’s a mistake in the article. Kenshoo reports that – “In the U.S. and U.K., average CPC values declined to $0.38 and $0.44 respectively”.

    In this article – “CPCs in the U.S. continued to be higher, at $0.44, than the U.K. at $0.38 USD.”

    http://www.kenshoo.com/q1searchadvertisingtrendsreportpr

  • http://twitter.com/buildforsearch Alex – BFS

    Still a good article btw!

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