MediaPost: Advertisers To Spend 15% More On Paid Search This Year With Mobile Driving Growth

According to Media Post,  citing an “Advertising Expenditure Forecast for June 2012 by Publicis Groupe company ZenithOptimedia, advertisers will spend about 15% more in 2012 on paid-search marketing, up 15% in 2013, and 13% in 2014.”

“The report points to three growth drivers: new opportunities to create custom experiences, integration of four screens, and an uptick in mobile.”

“Mobile paid-search spend sits at 15% of all paid-search spend, up from 5% in April 2011″

“Today, mobile CPCs remain relatively low compared with desktop, but the study points to mobile CPCs rising due to more competition as major shopping days and holidays approach, beginning with back-to-school in mid to late summer.”

“A reality check with search engine marketing experts reveal that second-quarter 2012 search budgets should grow between 15% and 20% compared with the prior year, according to Citi Analyst Mark Mahaney.

“CPC trends appear to remain negative, although there are select signs of improvement,” he wrote in a research note published Friday. “Mobile continues to be viewed as an Incremental driver of search spend and not as a headwind.”

“If you’re an online marketer, you also know we’ve entered the dawn of mobile advertising for both search and display.”

While people may search on mobile devices I would expect that less do so with type in domain traffic than traditional desktops and laptops but I’m not sure anyone has done a study on that.

Comments

  1. Anon says

    Other than random curiosity browsers- of which there can be many if you own the right keyword- nobody’s seriously “navigating” with keyword . com anymore, on any device.

    Domainers had their chance.
    Instead of delivering content, they served up 15 years worth of Netsol shovel men and PPC landers, thus blowing that opportunity out of the water. Shudder to think how much money was pissed away in the meantime but then again, this ‘industry’ has always been defined by clueless idiots just thrilled with the fact that they’ve managed to take an opportunity to make billions and turn it into millions. That ship has sailed.

    Ironically enough, PPC might actually be the very best medium for type-in traffic in the year 2012, since the people who arrive that way are usually nothing more than curiosity browsers and not coming to actually buy anything.

  2. Louise says

    4 screens means: tv, laptop, smartphone, and tablet. Rest assured most households still have PC, but PC is an older demographic. Half of cell phone users have smartphones, about 46% of American households. Going online is one of the big uses, and of going online on any screen, search is one of the highest activities, about 92%, according to Pew research.

    Smartphones uses are different, because of the features they offer, such as location-based. That is why, Google mobile search is keen on location with its maps feature, because location info is on the phone. The GAKT filter shows searches on, “mobile.”

    It’s good news for domainers, as far as I can see. Francois is going to let me post an article, when I get it ready from research on my own sites . . .

  3. Grim says

    In my family, desktops and laptops are the younger demographic, and tablets and smartphones (and desktops) are the older. I like a quick bit of entertainment on an iPad or iPhone, but can’t spare that much time to play a more involved game on my desktop. The younger crowd in my family are the complete opposite, preferring more complex games on PCs or consoles.

    PCs will still be around for a long time. It’s just that there’s less reason to upgrade as often, since a Quad Core with a good graphics card bought 4 years ago still plays 96.87% of anything you can throw at it. (Or in my case, still runs my development software and Adobe Creative Suite, just fine.)

    This, I think is one of the main reasons for declining PC sales, although I’m sure competition from mobile devices also is having some influence on how people are spending their money. But people just don’t need the latest, greatest PC anymore, like they once did not too long ago.

    P.S. @Anon – Everything will be okay.

  4. BrianWick says

    Grim –
    “The younger crowd in my family are the complete opposite, preferring more complex games on PCs or consoles.”

    We use laptops in my family for educational purposes – in addition to entertainment.

    And Anon – you still need to get that app on the smartphone – either tons of marketing money or a nice intuitive / generic self-marketing, self promoting .com

    And finally – how many people want to feel “smart” in this world – so they use a smartphone to check their facebook account 30 times an hour – to find out when their “friends” are going to the bathroom, rubbing one out, walking the dog, pumping the dog, going to the medical marijuana store or just want to see what the person sitting across the table from them at a starbucks is doing (because they no longer know how to talk to a person).

  5. Leopold says

    @Anon …… was I supposed to go for Billions instead of Millions? Who says so?
    Maybe I enjoy my life more while others are slaves to the grind. Did you ever think of that?

    Does anyone do any serious work on a smart phone or tablet? Can you really bang out a long email or work on a job resume?

    I could never work as efficiently or as fast on anything other than a desktop. Desktops are not going anywhere for now. They are must if you want to do domaining right.

  6. Back in the real World says

    Leopold – does anyone do any serious work on a smart phone or tablet? No.

    Grim – I read an article just yesterday (sorry no link) that backs up exactly what you are saying, its the younger generation that access their social media through laptops and the older through phones, against conventional wisdom and thinking.

  7. BrianWick says

    @Back and Leopold –
    When you boil it all down A smartphone is a vibrator. To see 75% of any large group of people anywhere in any forum at any given time using their vibrator – just tells me what a brain dead society we live in.

  8. says

    Hello, MHB

    Google.com has laid their foundation, and already has the largest Mobil Platform on the Planet.

    Those who would argue for FB to win this endeavor are smoking some pretty powerful stuff. Google.com decyphers human language to no equal and Apple has a dominant Brand. look for the both of them to dominate the field. Oh, and buy the way Googles passive residual income makes them a formidable force. The two actually play off each others strengths “Governing Dynamics”

    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

  9. says

    Leopold- yes they do
    Pew: 45% of Younger Users Access the Internet Primarily via Mobile: The US Center for Disease Control tracks the… http://t.co/zzWgoTuA

    Now the web will be more mobile and its navigation verbal. That doesn’t mean domains are sea, just certain premium dot com domain which pass the SIRI/Radio test will be worth 1000x more.

    You think of it as working on a phone but not when it’s a microphone that controls your tv your computer at home etc- a master remote controller with your voice as commander.

    That’s the future- wait that’s coming by end of year!

  10. says

    Sorry for typos- corrected
    Now the web will be more mobile and its navigation verbal. That doesn’t mean domains are dead just that certain premium dot com domain which pass the SIRI/Radio test will be worth 1000x more.

    You think of it as working on a phone but not when it’s a microphone that controls your tv your computer at home etc- a master remote controller with your voice as commander.

    That’s the future- wait that’s coming by end of year!

  11. L says

    Frager- kudos the blog post giving a bit of exposure to City Year.

    I worked along side them in 2003- in a different Federal service program- and they’re definitely doing great things. I won’t delve into details or specifics, but they’re a program I definitely support.

  12. Louise says

    @Jeff Schneider said:

    Those who would argue for FB to win this endeavor are smoking some pretty powerful stuff.

    But Facebook is doing something interesting with ads, which is unique and highly targeting.

    Facebook Exchange: A New Way For Advertisers To Target Specific Users With Real-Time Bid Ads
    http://techcrunch.com/2012/06/13/facebook-exchange

    When I posted this same link on Morgan Linton on June 13th, Facebook closed 27.27. It only went up after this news, to today’s close of 33! I picked the bottom, based on this news!

    Facebook Exchange will enable companies to optimize ads for Facebook members based on what they looked at when visiting their websites. For example:

    For example, Ford could drop a cookie on a user who looks at the new Escape SUV on its website, but doesn’t request a local quote. Then Ford could bid to show that user ads stating “Ford Escape: Just $21,000″. These would be much more relevant than generic Ford ads showing sedans or trucks that the user might not be interested in. And Ford would likely be willing to pay a high price to reach that qualified lead.

    It’s huge news!

  13. Back in the real World says

    Owen -

    The idea sounds great, just like Siri, but the reality is this is tech that solves a problem that doesnt exist, just like Siri.

    The vast majority of people are not going to speak into their phones to change the TV station, because theres an invention that exists for that already called a remote. The small minority of people who do speak into their phones currently, those that actually use Siri now, may take up this tech. Those small minority of people who talk into their phones in public are not early adopters or any indication of a future trend, those small minority of people are what most sensible people like to refere to as wankers.

    In 10 years 99% of people will still use a remote, you can bank on that.

  14. says

    @ Back in the real World??? Excuse Me

    The fact of the matter is usage of SIRI is ramping up at a dramatic pace. Audio types of people are eating this up! We think you may just may want to re-evaluate here. You need to use FACTS not opinions. Steve Job is literally shaking his head at you in disbelief.

    Gratefully, Jeff Schneider (Contact Group) (Metal Tiger)

  15. says

    Hello MHB

    It is terribly evident that there are many MOLES from other competing industries to ours. These nasty little Green eyed Monsters are very capable of spewing venomous lies to try to disrupt Domainers, the real visionaries.

    Good Luck Boys We own the high ground. Your lies may wash on other Blogs but just remember you are all losers in the truest sense. Why dont you all migrate over to FaceBook and see if someone LIKES you.

    Gratefully Jeff Schneider (Contact Group) (Metal Tiger)

  16. Louise says

    @MHB, here is an article deciphering Pews’ recent study about the move to mobile:

    Americans moving to mobile Internet: survey
    http://phys.org/news/2012-06-americans-mobile-internet-survey.html

    The Pew Internet & American Life Project found 88 percent of US adults had a cell phone of some kind as of April, and 55 percent of them use their phone to go online.

    One out of six, or 17 percent of cell phone owners do most of their online browsing on their phone, rather than a computer or other device.

    Sorry, @ Jeff! Thought it was an interesting point about Facebook, that’s all! :D

  17. says

    One of the other reasons why Mobile Search ads is growing is because of reporting & tracking technology is compatible with Android & iOS. With other systems we couldn’t track conversions sales etc easily as a whole.

    Conversions are not only sales, but sales do happen on mobile phones also.

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