Facebook ad budgets increasing faster than search budgets, Kenshoo study finds

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By Brittany Darwell Comment

Marketers are increasing their Facebook advertising budgets at a faster rate than they are for search ads, digital marketing software company Kenshoo has found.

For the first half of 2012, Kenshoo clients’ Facebook ad budgets are up 36 percent, whereas paid search budgets are up 12 percent. At a time when many are questioning the effectiveness of Facebook ads, Kenshoo and other social ad software and services companies are finding that clients are regularly spending more.

Kenshoo CMO Aaron Goldman says he’s seen signs that Facebook is becoming a part of brands’ “always-on” advertising. Kenshoo did not offer data from previous years or quarters, but Goldman says Facebook¬†ad spend growth is generally more consistent than in the past. He cited May as an anomaly when clients increased their Facebook budget more significantly.

Search spend is still increasing, showing that brands aren’t necessarily cutting search budgets in favor of Facebook. Instead,¬†marketers are spending more across the board. With Facebook launching its own search advertising product this week, Kenshoo and others are watching closely to see whether this dynamic changes.

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