Q4 Report: Strong Quarter for Tablets in Paid Search Advertising

This morning, IgnitionOne released its quarterly report, which revealed that YoY US paid search spending growth for tablets doubled that of smartphones, as mobile devices in their entirety grew to 18% of total search budgets.

The report also indicated that the Yahoo! Bing Network saw a 48% increase in spend YoY, compared to Google’s 12%, elevating their ownership of the US search market to 24%, its greatest share since Q1 2009. Total paid search spending grew at 19% YoY, representing a continued acceleration from last quarter.

Download the Q4 2012 Online Advertising Report here.

Additional findings include:

  • 2012 ends with a strong Q4 for search – Ending with a robust holiday shopping season, U.S. search saw advertising spend up 19% YoY in Q4. The fourth quarter also saw YoY increases in impressions (19%), and clicks (6%).
  • Tablet search breaks away from smartphones as mobile devices continue to explode – U.S. YoY search ad impressions for tablets are up 212% compared to smartphones’ increase of 20%. Spend for tablets is also double that of smartphones with increases of 163% vs 87%.  Mobile devices now account for 18% of total search budgets.
  • Yahoo! Bing Network picks up steam – Yahoo! Bing continued to accelerate their growth in the U.S. with a YoY increase in Q4 spend of 48% compared to Google’s 12%. This helped Yahoo! Bing grab the biggest share of market (24%) since Q1 of 2009
  • Shoppers splurged on higher value orders in Q4 – U.S. Retail search advertising saw YoY increases greater than average on impressions (+28%) and clicks (+10%) and Average Over Value (AOV) increased an impressive 46%.  However, transactions decreased 31%, pointing to consumers checking out with fewer, but higher-value carts.
  • 2012 was a good year for paid search – When comparing to 2011 for our top U.S. clients, paid search metrics for the full year increased across the board with spend increasing 31% and impressions and clicks increasing 21% and 22% respectively.

“Tablets have become a very important device for advertisers, especially retailers,” said Roger Barnette, President of IgnitionOne. “Smart marketers took advantage of the high level of engagement on these devices during the critical Q4 shopping season and we will continue to see budget shifts to mobile campaigns in the New Year.”

This report is the latest in a series reviewing trends across the online advertising landscape. This and previous quarterly reports can be downloaded here.

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