Paid Search Spend On The Rise, But So Is CPC & Advertising Efficiency

A recent study by Kenshoo, as reported by an article in eMarketer, reports that at the end of 2013, paid search clicks increased over 12% annually around the world, with 16% in the United States specifically, the biggest quarter for paid search ever worldwide. Cost per click (CPCs) metrics are also on the rise, increasing 6% in the same period, and impressions decreased by 10%, inferring that paid search advertisers are also becoming more efficient with their PPC budgets.

ppc clicks increaseSearch engine advertising in the Americas saw the greatest year-over-year gains in clicks, at about 16%, but more importantly saw little change in average CPC (1.7% increase). Search engine advertising in Asia-Pacific saw a 35.2% jump in CPC. In comparison, ad impressions dropped by almost 31% and overall clicks dropped nearly 5%, reflecting potential marketing adjustments in the face of rising CPC’s.

The increase in CPC did not curb broader search advertising budgets however, as the report also showed over a 28% growth in spend in the Asia Pacific region year over year; the largest increase for all markets.

Paid advertising is an attractive demand generation tactic for B2B marketers, primarily due to the ability to more closely align advertising cost to lead metrics. As illustrated in a recent budget study from Forrester and the Business Marketing Association, many marketers still face ongoing pressure to justify their budgets.

Per news release, “More than half of those surveyed said they feel challenged to connect marketing goals to business objectives in ways that defend budget requests, or find it difficult to attribute marketing activity directly to revenue results as another means to justify budgets.

That said, the budget study also indicated that B2B marketers plan to increase marketing budgets by an average of 6%, with technology, data analytics, and innovation topping the list of priorities CMOs must figure out how to fund in the New Year.

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