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Marketers Increase Search Budgets by 16 Percent, Report Shows

11 Apr, 2012 By: Jackie Jones

SAN JOSE, Calif. – Digital advertising continues its upward trend in 2012, with search emerging as the strongest driver of ROI for marketers in the first quarter of this year, according to recent data from Adobe Systems.

Marketers increased their search budgets by 16 percent in the U.S. in Q1, and 3 percent in the U.K. when compared to same time period a year ago, according to Adobe System’s “Global Digital Advertising Q1 2012 Update.”

“As traffic on mobile devices, specifically tablets, increases four-fold year-on-year, advertisers are adding search investments to these devices,” Adobe said. “This indicates that search on mobile and tablets is just as strong of an emerging market as social media, and will continue to positively influence the growth in search spend globally.”

Marketers also increased spending on mobile campaigns, dedicating 8 percent of search budgets in the U.S. and 11 percent in the U.K.

Adobe’s report also highlighted the continuing emergence of Facebook as a dominant market. Facebook spend has grown by 93 percent year-on-year, and post-engagement increased 175 percent.

“Engagement in the brands’ Facebook posts have increased dramatically since the beginning of this year,” Adobe said. “This may be due to the new platform changes Facebook has made in the last two quarters. The most significant lifts were seen immediately after the release of Facebook Timeline for brands.”

Facebook’s share of U.S. online display advertising revenues has increased significantly since 2011, according to estimates from eMarketer, which added the shift is a positive move for DR advertisers (Response This Week, June 22, 2011).

“Facebook’s distinctive form of display advertising is increasingly attracting advertisers. These are mainly smaller companies, and some of them have a strong direct response focus,” eMarketer principal analyst David Hallerman said. “Google is going after many of the same advertisers to some extent, and this is where one facet of the competition between them will heat up. However, with the vastly different advertising experience each company offers, many marketers will run display ads on both platforms.”

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