state of paid search report q1 2013

Trends in Paid Search Q1 2013The Search Agency

P ropr i e t a ry and Con f i den t i a l

Overall Paid Search Trends

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3P ropr i e t a ry and Con f i den t i a l

Overall Trends in Paid Search

Our spend analysis across search engines shows a 21.6% increase YoY and an 8.2% increase QoQ. Spend growth is due to CPC and CTR

increases of 9% and 15.9%, respectively.

4P ropr i e t a ry and Con f i den t i a l

Overall Trends in Paid Search

Total clicks across search engines increased 11.7% YoY and 8.7% QoQ.

5P ropr i e t a ry and Con f i den t i a l

Overall Trends in Paid Search

CTR increased 15% YoY and 30.7% QoQ.

6P ropr i e t a ry and Con f i den t i a l

Overall Trends in Paid Search

Our CPC analysis across search engines shows that CPCs increased 8.6% YoY, from $0.70 to $0.76, but decreased 0.5% QoQ.

7P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Our analysis of spend across search engines shows that Bing’s spend increased 42% YoY and 22.4% QoQ. Google’s spend increased 17.1%

YoY and 4.5% QoQ.

8P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Despite its decline in impressions, Bing’s clicks increased both YoY and QoQ, at 32% and 15.8%, respectively. Google’s clicks increased 9% YoY

and 7.9% QoQ.

9P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

According to our data, CPCs increased across both search engines. Bing’s CPCs increased 7.4% YoY and 5.5% QoQ. Google’s CPCs

increased 7.5% YoY but saw a slight decrease of 2.8% QoQ.

10P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Our analysis finds that smartphone CPCs on Google decreased from $0.65 to $0.58 YoY, but saw a dramatic increase of 28.9% QoQ. Tablet

CPCs increased 18.2% YoY but decreased 5.8% QoQ. And lastly, desktop CPCs increased 12.1% YoY but saw a 2.7% decrease QoQ.

11P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Our data shows that smartphone CPCs decreased 5.5% YoY but increased 17% QoQ. Tablet CPCs increased 3.8% YoY and 1.9% QoQ.

Lastly, desktop CPCs increased 9.4% YoY and 6.4% QoQ.

12P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Google’s click share fell to 86% in Q1 – a 2.5% decrease YoY and 1% decline QoQ.

13P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Google’s spend share fell to 79%, down 3.6% YoY and 3% QoQ.

14P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Smartphones and tablets continued to gain share on Bing. Desktop share was 85.8% in Q1, down 8% YoY and 4.7% QoQ.

15P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Tablet and smartphone share was also up on Google. Desktop share of total clicks was 72.4% in Q1, down 13.6% YoY and 7.1% QoQ.

P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

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17P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Desktop share of spend decreased 9.0%, smartphone share of spend increased 38.1%, and tablet share of spend increased 92.3% YoY.

18P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Desktop share of impressions decreased 10.8%, smartphone share of impressions increased 103.4%, and tablet share of impressions increased

80% YoY.

19P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Desktop share of clicks decreased 12.6%, smartphone share of clicks increased 65.9%, and tablet share of clicks increased 76.2% YoY.

20P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Smartphone CPCs decreased 10.4% from $0.67 to $0.60 YoY, but increased 27.7% QoQ; Tablet CPCs increased 19% YoY, from $0.58 to $0.69, and decreased 2.8% QoQ; Desktop CPCs increased 14.1% YoY,

from $0.71 to $0.81, and remained relatively flat QoQ.

21P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Google‘s share of total clicks on tablets decreased from 94.1% to 90.2% YoY.

22P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Google click share on smartphones decreased slightly YoY, from 95.3% to 93.9%

23P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Google click share on desktops decreased YoY, from 87% to 83.9%

P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Ad Format

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25P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Ad Format

PLAs continued to be popular in Q1 2013. PLA spend increased 530% YoY, but decreased 25% QoQ.

26P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Ad Format

PLA clicks increased 653% YoY and 25% QoQ.

27P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Ad Format

PLA CPCs decreased 16.2% YoY, from $0.68 to $0.57. Our QoQ analysis demonstrates that PLA CPCs declined by 33.7%.

28P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Ad Format

9.9% of total PLA clicks came from tablets. Smartphones made up more than 2% of PLA clicks for the first time.

Trends in Paid Search Q1 2013The Search Agency