PPCMobile Paid Search Spend Up 98% Globally vs. Last Year [Report]

Mobile Paid Search Spend Up 98% Globally vs. Last Year [Report]

Covario released its quarterly report that looks at global paid search spend. Mobile online advertising saw a 98 percent increase in spend year-over-year (YoY) and 6 percent increase quarter-over-quarter (QoQ) globally. Overall, spend was up 21 percent YoY and 2 percent QoQ worldwide.

Covario released its quarterly report today that looks at global paid search spend. Mobile online advertising was the undisputed star of the findings, with 98 percent increase in spend year-over-year (YoY) and 6 percent increase quarter-over-quarter (QoQ) globally.

In Q2 2014, mobile search advertising made up 25 percent of total worldwide advertising spend.

media-spend-by-device-covario

Overall, Covario’s report showed a 21 percent year-over-year (YoY) spend increase and 2 percent QoQ boost amongst the search agency’s high tech, consumer electronics, and retail clients globally.

From the report:

The increases in media expenditure were driven by an 18% rise in traffic year-over-year, but conversely by a 15% decrease in impression volume. This follows a trend we have seen for several consecutive quarters, where quality trumps quantity. With Google’s larger ad units coming into play more and more, the click-through rates (CTRs) on those ads have been increasing along with the budgets.

paid-search-activity-q2-covario

Click-through rates increased 39 percent QoQ, but were down YoY. Cost per click was up 2 percent on average YoY. “This was due in large part to the increased desktop competition for the falling impression levels buoyed by higher performing ad units,” the report said.

Russia’s Yandex saw the largest increase in cost per click YoY with a 30 percent increase worldwide. Google held steady YoY but saw a 10 percent decrease QoQ.

cost-per-click-covario

How should advertisers prepare? Based on global trends, the report gives ad spend planning by region as follows:

  • The Americas: Budget for 15 to 20 percent increase in paid search spend in 2014, “emphasizing top growing countries of Mexico, Brazil, Chile and Argentina. The Americas’ budget should allocate 80 percent of search spend to Google, with anywhere from 15 percent to 20 percent going to Bing,” the report stated.
  • EMEA: Budget for 10 to 15 percent increase in paid search spend in 2014, “focusing both on the larger and stronger Tier 1 markets, as well as emerging markets in the Middle East and African countries,” the report said. “We further recommend that 95 percent of this spend be allocated to Google, except in Russia and parts of Eastern Europe where spending on Yandex should dominate budgets.”
  • APAC: Budget for 10 to 15 percent increase in paid search spend in 2014. “We expect most of that growth to be spread among China, South Korea, Japan, South APAC countries, Australia, and New Zealand,” said the report. “Chinese market search engine investments should focus on Baidu with about 95 percent of the budget, with an eye on upstarts Qihoo 360 and Sogou.com that are gaining momentum there. South Korea’s Naver search platform now garners 98 percent of the budget there, while the rest of the APAC region should be allocated with budgets split 80 percent Google and 20 pecrent Yahoo.”

For the full details of the report, download it here.

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