Tech Firms Increase Paid Search Spending Despite Weak Economy
Year-on-year paid search spending by technology companies such as Intel and Lenovo grew from 43 percent in the second quarter of 2008 to 51 percent in the third quarter, despite the faltering economy.
This was a key finding from interactive marketing analytics firm Covario's Global Search Spend Analysis Vol. 3 (Q1 2007 to Q3 2008). The analysis in this report focuses on paid search spending at 12 U.S.-based technology firms, from the first quarter of 2007 to the third quarter of 2008. The combined paid search advertising spend of the companies represents more than $225 million.
The San Diego-based Covario says the paid search spending spike resulted from several factors. Among them was the summer Olympics, which brought unique advertising opportunities to marketers. Also of note were back to school advertising campaigns.
Other noteworthy findings from the report:
* paid search spending growth rates decreased from 83 percent in the first quarter of 2007 to 32 percent in the third quarter of 2008 in North America;
* advertisers shifted part of their budgets for paid search away from Google to Yahoo in the second quarter of 2008; and
* clickthrough rates for Google were 1.9 percent in the third quarter of 2008, down from 2.4 percent in the third quarter of 2007.
To download a copy of this report, please visit www.covario.com.