Q4 2013 recorded the highest search advertising spend in history

The final quarter of 2013 was the biggest in paid search advertising history according to the latest global data from digital marketing technology leaders, Kenshoo. Fuelled by a record December for online shopping, advertisers also found their search advertising drove 25% more clicks year-on-year, with fewer impressions.

The Kenshoo Global Search Trends analysis revealed that search marketers spent more on search advertising in Q4 2013 than any other quarter on record, with a 19% Year-on-Year (YoY) increase in spend and 29% growth Quarter-on-Quarter (QoQ).

The data is based on a representative sample of Kenshoo clients, which manage more than $5 billion in annualised global advertising spend on the Kenshoo platform, and indicates that search marketers improved overall efficiency of their advertising campaigns, driving more clicks via their ads with fewer impressions, resulting in a 25% YoY increase in click-through-rate globally.

In the Europe Middle East and Africa (EMEA) region, marketers spent 23% more YoY and QoQ on search advertising. These marketers generated greater volume and efficiency through their campaigns in Q4, with 24% more impressions QoQ and 29% more clicks.

The United Kingdom (U.K.), France and Germany all saw the traditional seasonal increases in quarterly search spend in Q4 with German budgets increasing by an impressive 34% QoQ.  Quarterly clicks also increased in all three countries, although the higher CPC in France and Germany meant relatively higher lifts in spend vs. click volume, while the U.K. experienced a lower CPC and greater overall campaign efficiency.

Total global revenues from PLAs increased 269% YoY with return on ad spend (ROAS) reaching €6.48 in 2013, more than a 6 to 1 return on advertisers’ investment. The click-through rate on PLAs rose 26% YoY in 2013 (it was 2.7% in 2012) to an average CTR of 3.4% in 2013. With this increased efficiency, retailers were able to generate 97% more clicks from only 57% more impressions YoY.

“Our data indicates that search advertising globally and in the EMEA region continues to see increases in spend, clicks and revenue, showing that leading brands and agencies are confident in its ability to deliver results,” said Rob Coyne, Managing Director for EMEA at Kenshoo.

“At Kenshoo, we’re committed to giving marketers the tools needed to effectively compete in this growing marketplace and our continued investment in R&D innovation reflects our clients’ continued investment in digital advertising.”