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Online advertisers spend more – and earn more – from paid search

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Online advertisers are spending more on search and earning more from it, according to new figures.

Search advertising spend has grown by almost 24% over the last year across Europe, the Middle East and Africa, according to Kenshoo‘s EMEA Search Advertising Trend Q2 2014.

While spend has risen, income is also rising, the figures show. Sales revenue from paid search grew by 23% over the quarter, suggesting that marketers in the region are getting strong results, with more clicks on ads and more sales conversions, from their search advertising spend.

The total volume of clicks on search ads was up by 11%, year-on-year, during the quarter, while total impressions were down by 6%. Click-through rate is up by 17% on last year, to 1.8% in the quarter.

“The data shows a healthy paid search market in EMEA, with advertisers enjoying increasing revenue from their advertising through more efficient campaigns,” said Justin Thorne, regional marketing director for EMEA at Kenshoo, a leader in predictive media optimisation technology. “Advertisers’ confidence in the paid search channel and strong demand for keywords means the price of search advertising has continued to rise – reaching a cost-per-click (CPC) of €0.43, up from €0.38 in 2013.”

In the UK alone, some 36% of paid search spend was on ads shown on mobile devices, the highest on record. Moreover, some 38% of all paid search clicks came through mobile ads.

“The increased share of spend and clicks taken by mobile could in part be due to the success of Google’s enhanced campaigns which simplifies the process of creating Google AdWords campaigns. Since migration to enhanced campaigns, search advertisers no longer have to run separate campaigns targeting desktops, tablets and mobiles – all devices can be served with ads within the same campaign, making it much easier to target mobile devices,” said Thorne.

An infographic with more information is available here.

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