Facebook Challenging Google on CPC Front


searchADOTAS – So far its mostly been anecdotal, merely whispers on the wind and “this is what the kids are doing” chat, but the notion that Facebook is cutting into Google’s search dominance has appeared on another front: CPC advertising.

As Efficient Frontier reported on Monday that Facebook CPC rates have grown 40% quarter over quarter due to rising popularity, a study from SEMPO and eConsultancy suggests that nearly half of marketers are using CPC campaigns on the social network — 47% of North American respondents and 45% of those elsewhere in the world.

Beyond CPC campaigns, 84% of companies are using Facebook as a promotion tool versus 73% that said the same last year. While 75% have a Twitter presence, only 52% are using LinkedIn as a promotional tool. However, more than a quarter of North American operations are running PPC campaigns on LinkedIn.

In general, search marketing is expected to grow from a $16.6 billion industry in 2010 to a $19.3 billion dollar one in 2011. Efficient Frontier also reported that paid spend is up 17% during the first quarter of 2011 alone.

While Facebook may be bringing in more CPC revenue, advertising on the social network was not the most important issue to the majority of respondents. Around 80% said that the growth of the mobile Internet was “significant” or “highly significant.” Agencies and publishers both claimed local search had ascended in prominence, with agencies reporting 34% of client search budgets were spent at at a regional, city or sub-market level.


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