June 28, 2012, 12:44 PM

Paid search spending increases nearly 16% in Q2

Mobile accounts for 14% of U.S. search ad dollars, IgnitionOne says.

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Paid search spending increased 15.5% year over year in the second quarter, according to a new report from IgnitionOne.

The digital marketing firm provided no spending figures in dollars, but said that the Q2 spending increase was roughly half of the 30.3% year-over-year jump in the first quarter of 2012. “This slowdown in growth can presumably be blamed on the weakness of the macro economy and the softness of the retail vertical in the quarter,” IgnitionOne said.

The report went on to say that paid search spending on Yahoo/Bing increased 32.9% in the second quarter compared with the same period last year. (Microsoft Corp.’s Bing search engine provides the search functionality for Yahoo Inc. sites as well as Microsoft sites.)  Spending on Google increased 11.4%. Still, Google captures 79.1% of search engine ad spend—up slightly from 78.83% in the first quarter—with Yahoo/Bing accounting for 20.9%—down from 21.17% in the first quarter.

Paid search clicks in the second quarter increased 13.2% year over year, IgnitionOne says, while impressions increased 13.7%. IgnitionOne bases its findings on ad spending by more than 500 clients.

The second quarter search spending points to the increasing popularity of mobile devices, including tablets. Spending on mobile search ads in the second quarter increased 333% year over year, while impressions jumped 130% and clicks increased 325%. In all, mobile search ads accounted for 14% of search ad spending in the second quarter, up from 12.3% in the first quarter of 2012.

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