The convergence of consumer’s increasing reliance on the web and recent Google changes has resulted in an increased importance and interest in paid online advertising.
It is estimated that for the first time ever, US online advertising spending will surpass print ad spending in 2012 and almost double it by 2016.
The average click through rate (frequency as a percentage that an ad is clicked) on Google was up 48% from Q4 2010 to Q4 2011. Meaning, more people are clicking on paid ads.
One reason for the increase in clicks is that Google has been making it more difficult for consumers to differentiate between paid and organic listings on their results page. In the past, the paid ads would have prominent background shading that made them stand out from the organic listings. Recently, that shading has become almost invisible, leading to more consumers clicking on paid ads without knowing they are paid ads.
While the number of paid search platforms is almost unlimited with the majority of high traffic websites offering the opportunity to pay to have ad space on their website, Google is still king. Google’s Adwords network is the largest in the world. Google currently collects 74% of all US search ad revenues, and that is expected to increase to 79% by 2014.
If you haven’t done so already, you should seriously consider reallocating your offline advertising budget to the web. Your ROI will thank you. Click here to learn more about the Paid Search (PPC) process.