Investment in paid search continues to grow, albeit more slowly

3 min read

Is the purpose of paid search? Since the announcement that display advertising to search eclipse during 2016, there have been many doomsayers have predicted the death of the first format, although the data do not indicate that exactly.

The return to check on the report of Adobe Digital over the fourth quarter of 2015, where it is revealed that it is true that growth in investment in paid search has slowed considerably, in particular, up to 75%. Thus, if in 2014 the growth was 12% in 2015 decreased to 3% (in aggregate data, because in the case of the decline was more dramatic: a growth of 17% was spent to another 5%).

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But as explained from Adobe “The momentum of growth has slowed searches, but that does not necessarily mean paid search as a channel are shrinking, it’s just that growth will slow On the other hand, we see that money is being spent increasingly on mobile search, which is generating more traffic.”

And it is that during the last quarter of 2015 mobile captured 23% of spending on paid search, a considerable increase from 15% the previous year. Meanwhile, the percentage intended for computer fell from 69% to 62%, and that of the tablet from 16% to 14%.

Clearly, this transfer mobile responds to the habits of the users, which is increasingly connected through the smartphone than any other device. But we must also bear in mind that the cost per click of the phone is quite smaller than the computer (26% lower), so paid search on the small screen are very interesting for advertisers. Especially when you consider that, in addition, the ratio of click is higher and the difference increases every month. If during the second quarter of 2015, the ratio of click was 20% higher in Mobile, at year end the difference was 40%.

The display advertising has won the game in online marketing

The sluggish spending on paid search ads does not, by any means, the end of the format, which continues to grow year after year. But marks a point of no return, especially when compared with advertising display, a concept so far received less of the budget, but will capture more investment each year.

You may also like to read another article on Web-Build: The gamification market will grow by 48% over the next three years.

This was recently unveiled one study eMarketer explaining that this would be the first year that spending on display will be higher than in searches. According to his data, for the American market, the display accumulates 32,170 million while searches would stay at 29,240 million in 2016. Of course, we must bear in mind that on display include much more than traditional banners: too rich media, videos or sponsorships (these subcategories are the ones really driving the growth of display advertising).

In any case, these categories will separate further in the coming years and by 2017 eMarketer estimated expenditure of 32,320 million paid search and display 37,200 million, and by 2019, 40,600 and 46,690 million, respectively. It is showing that the display has won the game, but search ads have not yet started its decline.

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