According to SearchIgnite, a provider of performance marketing technology and services, paid-search spending in the U.S. rose 18.5 percent year-over-year in 2010, which sets the stage for a strong showing in 2011.
Though 2009 was a weak year for PPC, 2010 saw strong growth, particularly in the fourth quarter, which saw spending rise 35.5 percent year-over-year. In contrast, the fourth quarter of 2009 was flat. The retail sector in particular surged in the fourth quarter of 2010, rising 36.6 percent.
Clicks in the fourth quarter rose 20.6 percent year-over-year, while impressions rose 2.3 percent and CTR rose 17.9 percent, according to SearchIgnite.
Momentum built up through the quarter, as spend was up 25.4 percent in October, 35.3 percent in November and 44.8 percent in December.
For retailers, not only did search spending rise significantly, but the average order value (AOV) also increased 31.3 percent year-over-year, and conversion rates rose 22.5 percent in the fourth quarter. The increase in AOV seems to indicate improved consumer sentiment. In December, AOV was up 48.3 percent. Back in the fourth quarter of 2009, AOV actually decreased by 13 percent year-over-year.
According to SearchIgnite, Google’s share of ad spending in the fourth quarter rose to 82.6 percent, up from 80.2 percent in the third quarter. “YaBing,” the name given to the Bing-Yahoo search marriage, claimed 17.4 percent of spending in the fourth quarter.
In the fourth quarter, the CPC on Google increased 9 percent, while CPC on YaBing remained flat.
Though 2010 was great, “Even more promising is the revival of consumer spend throughout the year and the strength of Average Order Values in Q4. We expect 2011 to be a strong year for search and online advertising overall,” said Roger Barnette, CEO of SearchIgnite.
According to the Efficient Frontier, marketers are set to increase their search budgets by 15 percent this year in the U.S. The company also notes that paid-search spending rose 23 percent year-over-year in the fourth quarter. ROI, however, fell 10 percent.
Google finished 2010 with 79 percent of spending, up from 75 percent in 2009. The search giant also increased its click share by 7.7 percent.
Sources:</strong
http://about.searchignite.com/en/press/u-s-paid-search-market-bounces-2010-strong
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=143089
http://www.efrontier.com/about-us/press/press-releases/digital-marketing-closes-strong-in-2010
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=143104
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