PPC Up, CPC Down in Covario’s Global Paid Search Spend Analysis for Q1

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ADOTAS – Today, search marketing/SEO services provider Covario issued its Global Paid Search Spend Analysis for the first quarter of 2012, which showed, among other things, that paid search ad spend was up significantly from last year for technology and consumer electronics companies, PPC ad spend rose in the Americas and shot through the roof in the Asia/Pacific region, and CPC was down worldwide for the second straight quarter.

Study author and Covario research analyst Charles Gaylord said in a release that the results were basically what he’d expected. To break it down regionally, compared to the first quarter of 2011, PPC spend had increased 15 percent in the Americas, a mere 2 percent in Europe (a symptom of lingering economic woes in the Eurozone) and a whopping 88 percent in Asia/Pacific. The growth is considerably smaller when you stack it up to the fourth quarter of 2011 — Gaylord saw no more than 2 percent of an increase worldwide since last quarter. CPC (cost per click) rates dropped 3 percent from last quarter, though — Gaylord credited changes in search algorithms to that decline, and he predicted CPC will bounce back, as paid search spending grows at a projected rate of 1 to 4 percent worldwide in the second quarter and rolls toward “double-digit growth momentum” during the second half of 2012 (18 to 20  percent in the Americas, 15-18 percent in Europe and over 40 percent in Asia/Pacific for tech companies). He cited the Summer Olympics, European Football Championships and U.S. presidential elections as major events he expects will benefit advertisers, and he had bright predictions for “the PC industry, in particular… poised for enormous marketing pushes on behalf of Windows 8 and a flurry of new laptops and ultrabooks.” In the first quarter of 2012, technology and consumer electronics companies already had upped their ad spend by over 22 percent compared to the same quarter of 2011, and by 1 percent from the fourth quarter of 2011.

Google maintains the lion’s share of the search market around the world, at 76 percent thereof (including 79 percent in the Americas and 94 percent in Europe), but in China, Baidu now boasts 80 percent of the search market. The study shows Baidu’s grown 4 percent since last quarter and 142 percent since this quarter last year. Meanwhile, Yahoo/Bing, which now together holds 13 percent of market share worldwide, saw a 20 percent decrease in paid search ad spend since the first quarter of 2011, if it nonetheless ticked up 2 percent from the last quarter of 2011.

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