Research Shows Search Advertising Up 30 Percent Year-Over-Year

April 12, 2012: According to research executed by Ignition One, search advertising experienced sustained growth in the first quarter of 2012, partially due to the rise of mobile device usage. The report, which analyzed more than 82 billion impressions and 1.9 billion clicks on Google and Yahoo!/Bing search networks, saw a year-over-year growth in search spend of 30.3 percent, more than doubling the rate of growth of first quarters in 2010 and 2011.

Over the past year, Yahoo!/Bing experienced the largest advertising spend increase at 46.4 percent, roughly 20 percent more than Google’s 26.6 percent growth within the same timeframe. From the fourth quarter of 2011 through the first quarter of 2012, Google saw a decrease of 5.4 percent. This is a common trend following holiday spending during the fourth quarter, according to the research. However, Yahoo!/Bing experienced a 14.3 percent spend increase quarter-over-quarter. From the report, “The robust quarter may be attributed to Yahoo!/Bing’s push for increased utilization of broad match keywords, which lead to more competition in auctions. This growth also propelled Yahoo!/Bing to a 21.2 percent market share—their best quarter since before the two combined forces.”

Report data shows mobile search served as a driving force behind the increase in search spend; it accounted for 12.3 percent of total search advertising spend in the first quarter of 2012. Mobile clicks went up as well, seeing a 246 percent year-over-year increase. This boom in mobile advertising spend can be attributed to the growing usage of tablet devices, which accounted for 67.4 percent of the mobile search budget for the quarter.

With the steady rise of advertising spend among search engines, specifically Google and Yahoo!/Bing, more Internet and mobile device users can expect to see featured advertisements on their preferred search engines.

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