State of Paid Search Reports Click Traffic Increased 27 Percent in the Past Year; U.S Search Impressions Up 21 Percent

  State of Paid Search Reports Click Traffic Increased 27 Percent in the Past
  Year; U.S Search Impressions Up 21 Percent

The Search Agency Report Also Finds Smartphone and Tablets Driving Paid Search
   and Yahoo!-Bing Network’s Traffic Growth Outperform Google Quarter Over

Business Wire

LOS ANGELES -- October 30, 2012

The Search Agency, a global online marketing firm and the largest independent
U.S. search marketing agency, today released its State of Paid Search Report.
The report found that across all search engines, click traffic increased by 27
percent year over year, and U.S. impressions have increased by 21 percent. The
quarterly report analyzes aggregated client data on paid search marketing
trends across search engines, devices, and industries on a year over year
(YoY—Q3, 2011 to Q3 2012) and quarter over quarter (QoQ—Q2 2012 to Q3 2012)

“The search industry overall is continuing to thrive. Over the last quarter
we’ve seen higher quality traffic on Yahoo!-Bing, driving advertisers to
invest more in the growing search engine,” said Keith Wilson, vice president
of Agency Products at The Search Agency. “Another area of rapid growth is on
tablets and mobile—we expect this growth to continue to pick up pace,
especially as we hit the holiday shopping season and new tablets are
introduced in to the market.”

Additional findings from The Search Agency’s State of Paid Search Report

Yahoo!-Bing Network traffic growth surpasses Google quarter over quarter

Google remains the dominant search engine; however, Yahoo!-Bing outperforms
Google QoQ in traffic growth – evidence of growing competition in the search
engine marketplace. Yahoo!-Bing’s click traffic increased by 9.6 percent in Q3
2012, while Google’s click traffic only increased by 0.7 percent.

Mobile is driving growth in paid search; tablets are picking up speed

Smartphone click traffic increased by 105 percent YoY, with a 13 percent
increase in cost per click (CPC). Tablets traffic has spiked, with click
traffic increasing by 339 percent YoY with flat CPCs.  Smartphone CPC
discounts remain unchanged; in contrast, CPC discounts on tablets more than
doubled from 7.6 percent in Q3 2011 to 17 percent in Q3 2012. Additionally,
smartphones showed the largest increase in CTR (click through rate) with a 27
percent increase YoY.

Google’s product listing ads showed triple digit growth

Spend on Google’s Product Listings increased by 378 percent QoQ, and share of
click traffic increased by 656 percent, indicating steady growth over the
quarter. Product listing ads were largely valuable to advertisers this
quarter, with QoQ increase in CTR of 25.4 percent and a CPC decline of 36.5

Consumer goods, consumer services, and media and entertainment industries
flocking to mobile and shifting away from computers

In the consumer goods industry, overall clicks were up 9 percent YoY. The
share of clicks on smartphones and tablets jumped from 4.9 percent in Q3 2011
to 21.1 percent in Q3 2012 (a 331 percent increase YoY). In consumer services,
click traffic on mobile devices increased by 117 percent and CPCs increased by
19.3 percent in Q3 2012. Computer click traffic decreased 30 percent YoY and
sustained an 8.8 percent increase in CPCs. In the media and entertainment
industry, smartphone and tablet click traffic share increased by 132 percent

To uncover key trends for the Q3 State of Paid Search Report, The Search
Agency extracted client data from search engine advertising tools. The
research sample included advertisers who had 15 consecutive months of data
with The Search Agency, and had an established and stable business model from
Q3 2011 to Q3 2012. All results are based on U.S. campaigns only.

To download the report, go to

About The Search Agency

The Search Agency is a global online marketing firm that combines high-tech
and high-touch strategies to help clients engage their customers online and
measure ROI beyond a reasonable doubt. With a deep-rooted history in paid
search and SEO, The Search Agency understands how activity on the web
intersects at search, and executes smart digital marketing strategies that
drive measurable results across multiple platforms. Services include Paid
Search, SEO, Landing Page Optimization, Display Media, Social Media and
Comparison Shopping Management, which are strategically leveraged to maximize
the efficacy of clients' integrated marketing campaigns. The company is one of
the nation's largest and fastest growing search marketing firms – named the
largest independent U.S. search marketing agency by Advertising Age and among
Deloitte's 2011 Technology Fast 500™. Founded in 2002, The Search Agency has
grown to more than 180 employees worldwide with headquarters in Los Angeles,
CA, and additional offices in San Francisco, East Greenwich, Baltimore, Tampa,
London, Sydney, Toronto and Bangalore. For more information, go to


Dotted Line Communications for The Search Agency
Stephanie Cooley, 510-922-8416
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