Report: Search Ad Spend Jumps in July

After a rough first half of the year, retail advertisers in July increased their spending on search ads for the first time this year, according to a new report issued by the agency Performics. And Microsoft’s newly revamped search product Bing may be an indirect beneficiary of that growth.According to Performics, the search-specializing shop within Publicis Groupe’s VivaKi, its retail clients increased search spending in July by 13 percent versus the same month last year. That was the first such jump in monthly spending recorded this year—a year when Americans have been saving more and reluctant to spend during the ongoing recession (as evidenced by recent poor retail sales figures). Previously, during the first six months of the year, though spending was not on the rise, efficiency was; Performics’ retail brands saw their return on investment climb 8.8 percent as overall search spending slipped, in part driving down pricing. During that period, Performics noted a five-cent, or 8 percent, decline in the average cost-per-click paid by search advertisers.July’s surge in spending is providing hope for the rest of the year. Besides retail brands, the agency saw increased spending in the auto category, driven by the U.S. government’s Cash for Clunkers initiative. July also proved to be promising for Bing, Microsoft’s much ballyhooed search reboot. Performics’ clients spent 40 percent more in search dollars with Microsoft than during the previous month when Bing debuted. Competition for ad inventory on Bing is also on the rise, as Performics recorded a 19-cent lift in average cost-per-click on the new search engine.

Performance Marketing

Report: Search Ad Spend Jumps in July

Mike Shields

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Mike Shields