Search Still Drives Ad Spend, Social Emerging

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What ad channel provides the biggest bang for your buck? Come on, you know. That’s right – search!

Adobe just released data showing that search-based digital advertising still remains the biggest driver of ROI for marketers, despite increased ad spending on social and mobile. Spending on mobile platforms for example reached eight percent of all search spend, with tablets alone accounting for four percent of total search spend. Findings from the Adobe Digital Index also indicated that social, while still an emerging channel, is poised for a big move. Facebook spend grew 93 percent year over year (representing between three and five percent of search spend).

“Investing resources in social has undoubtedly become a key focus for marketers over the last year,” said David Karnstedt, vice president and general manager, Advertising Solutions at Digital Marketing Business, Adobe. “While social is absolutely on the rise and an important channel, search is still the key driver of digital marketing ROI. With the emergence of tablets, mobile creates a new opportunity for search investment with efficiency gains to their overall program, at least in the short-term.”

Some additional highlights include:

- Adobe expects that search spend in the US will increase at a rate of 10 to 15 percent for the rest of 2012.

- Conversion rates on mobile devices are comparable to desktop performance even though mobile CPCs are 30 percent lower.

- Traffic on mobile devices, specifically tablets, increased four-fold YoY, and advertisers were quick to respond, growing search investments in mobile and tablets by 250 percent YoY.

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