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Global Search Ad Trends You MUST Know

Posted on 4.29.2013

To be successful in digital advertising, you must always keep your virtual finger on the pulse of the industry. It’s essential to understand what is happening when it comes to click-through-rate, where spend is increasing/decreasing and the average cost-per-click.

Without that information, you just can’t make good decisions or plan effectively for paid search campaigns. Kenshoo's new report, which examines the performance of paid search marketing, provides exactly that.

Here are a few of the more interesting highlights:

Global CTR and Click Volume Spike: Q1 2013 global CTR reached 1.68% compared to 1.04% in Q1 2012, a dramatic 62% increase year-over-year (YoY) while Q1 2013 click volume increased 21% YoY. Meanwhile, impression volume declined 26% compared to Q1 2012.

Paid search ad spend increased globally but decreased in Europe: A 15% boost in global paid search ad spend was fueled by a 24% increase in U.S. search ad spend. Paid search ad spend decreased in Europe, however, with U.K. paid search advertisers spending 11% less YoY and search advertisers throughout the rest of continental Europe spending 4% less YoY.

Global average paid search CPC at five-quarter low: After reaching a peak value of $0.46 in Q3 2012, global CPC levels continued to decline in Q1, reaching a five-quarter low of $0.39. This average CPC falls just below the Q1 2012 value of $0.41. In the U.S. and U.K., average CPC values declined to $0.38 and $0.44 respectively, while continental Europe CPC remained flat at $0.36.

Mobile share of ad spend continues to trail relative share of clicks: In the U.S., mobile devices accounted for 19% of all paid search clicks while only accounting for 14% of total paid search ad spend. In the U.K., mobile devices accounted for 28% of paid search clicks while accounting for roughly 25% of total ad spend.

“After examining our Q1 data, what stands out most is the increase in paid search efficiency,” said Aaron Goldman, chief marketing officer of Kenshoo. “With global ad spend, click volume and click-through-rates all growing, it’s clear advertisers are becoming even more sophisticated with their campaign targeting and optimization techniques. This is a very healthy sign for Kenshoo clients and bodes well for a strong 2013.”

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