The Growth of Global Search Spending
May 17, 2013
What is going on with search? According to Search Engine Watch in “Kenshoo Global Search Spending Grows 15%, CPCs Drop In Q1” the trends point to global search spending going up, but the costs-per-click are in the doldrums. Kensoo’s Global Search Advertising Trends tracked the search trends and found many positive factors: click-through-rates are up 62%, search spending is 15% up year-over-year, and the total spending is up 32% from 2011. It all looks great, but then the global average CPC dropped $0.39.
It seems the search market is an inevitable seesaw, but what is making it rise and descend so much? Possibly the lack of marketers who have not caught onto mobile. The immediate culprit would be social media, but the just might be a red herring:
“Social media is certainly sucking up all the buzz, but is this what’s depressing CPCs? Not according to Aaron Goldman, CMO of Kenshoo. ‘Social is certainly hot, but we’re not seeing it cannibalize search budgets,’ Goldman said. ‘Rather social is being funded from other channels, such as display and offline.’ He adds that social ad platforms including Facebook Exchange are taking budget from other ad exchanges and networks.”
We’ll just pin it on a bunch of economic factors that mesh together and form near indecipherable tracings. Bet your dollar that Google will be affected; the Google Glasses won’t be able to protect them from this burn if it continues.
Whitney Grace, May 17, 2013
Sponsored by ArnoldIT.com, developer of Beyond Search
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