May 16, 2014, 11:15 AM

U.K. paid search marketing budgets will increase in 2014

A new report also says that mobile accounts for 9% of paid search spend.

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Retailers and other organizations in the United Kingdom will spend more on search marketing this year than last year, according to a new report from market research firm Econsultancy.

The firm found that 58% of survey respondents plan to increase their paid search budgets this year. That compares with 55% who said the same thing for the 2013 “UK Search Engine Marketing Benchmark Report.”

Among the paid search programs U.K. marketers will direct money toward, the report notes, is Google Inc.’s Enhanced Campaigns,  which rolled out in February 2014 and apply to AdWords ads. Those campaigns allow retailers to manage in a single AdWords campaign their ads across desktop computers and smartphones, while also factoring in such variables as time of day and location.

For natural search—a.k.a. search engine optimization—55% of respondents will increase spending to boost their rankings in search results. That compares with 51% in last year’s report.

Econsultancy bases its findings on a survey conducted this spring of more than 700 companies and agencies and produced the report with Latitude Digital Marketing. The firm did not immediately say how many of those respondents were retailers. . “The market is clearly more competitive for paid search as it’s a lucrative channel and worthy of increasing investment for many brands,” says Richard Gregory, Latitude managing director.

The report also found that:

• 44% of respondents say they can measure the return on investment from paid search “effectively,” down from 53% last year.

• 55% of companies report spending at least 50,000 pounds (US$84,000) per year on paid search, up from 51% last year. 36% of respondents spend less than 25,000 pounds (US$42,000) per year, down from 40%.

Mobile search accounts for 9% of paid search budgets. The percentage from the previous year was not immediately available.

• 74% of respondents advertise on Facebook, 37% on Twitter and 37% on LinkedIn.

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