Q2 Findings Indicate a Growth in Global Paid Search Activity

Kye Mou
July 13, 2012

Marin is excited to announce the release of our 2012 Q2 online advertising report. This report, which identifies significant year-over-year paid search trends, was compiled using data from over 1,800 advertisers and agencies who invest over $4 billion annually in online advertising through Marin.

At a glance, our study revealed an overall increase in cost-per-click (CPC), with click-through-rate (CTR) remaining relatively consistent year over year. However, in the US, we found a significant increase in clicks and impressions on Google, with CTR increasing by 3%. Some of the key findings in our study include:

  • 13% increase in clicks and 0% increase in CPC on Google
  • 14% increase in clicks and 22% increase in CPC on Yahoo!|Bing
  • 5% increase in CTR on Yahoo!|Bing

US YahooBing Metric Changes - Q2 Benchmark

So what does all this mean? The 14% increase in year-over-year clicks certainly benefits Yahoo!|Bing from a growth perspective. However, it’s effective monetization that allows Google to capture 81% of total ad spend and 80% of the click share; despite only having 66.7% of the overall US search volume. The 22% year-over-year increase in CPC on Yahoo!|Bing, compared to Google’s 0%, provides some evidence of more effective monetization, and the likely increase in competition amongst a growing number of advertisers.

US Click Share - Q2 Benchmark

Device targeting, specifically smart phones and tablets, continues to soar in popularity. This increase in popularity is not only evident year over year, but also quarter over quarter. Click share on tablets increased from 6% to 8%, while desktops dropped from 84% to 82%, based on our Q1 analysis. Increases in click share give evidence of the growth in consumer adoption. With smart phones and tablets showing higher CTRs and lower CPCs compared to desktops, mobile search should continue to be top of mind for advertisers.

Want to see other Q2 industry trends from 2012? Download the full report here.

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