13 Jan '12, 4pm

Search spend to grow 15%-20% in 2012 but CPC down

Rise of mobile has big affect on CPCs. I just reviewed Efficient Frontier’s Q4 report for online advertising, which includes predictions for 2012. The good news? The company predicts search spend will increase 15%-20% in 2012. On the downside for domain parkers, CPC will decrease 4% on top of 5% Quarter-over-quarter that they reported in Q4. To be fair, this isn’t an across the board drop in CPC. A lot of it is attributed to an increase in mobile ad clicks, which currently cost less. Here’s some other interesting data. Mobile ads are exploding. It’s 7%-8% of search spend right now, up from 2% a year ago. Efficient Frontier expects it to be a whopping 16-22% of all paid clicks by the end of 2012! This includes tablets, which I think should be a separate category from mobile phone traffic. Yahoo/Bing ROI tops Google. The combo continues to have a better return-on-click for a...

Full article: http://domainnamewire.com/2012/01/13/search-spend-to-grow...

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