Search advertising sees 18 percent increase in revenue in first half of 2013
Marketing SEO

Search Advertising Sees Notable Gains in Revenue in First Half of 2013


With so many advertising options in the digital world, knowing where to invest a marketing budget can be difficult for business owners. Search advertising revenues increased to $20.1 billion during the first six months of 2013, a 18 percent year-over-year increase that marked a record high for the industry, a new advertising spending report from the Interactive Adervisting Bureau (IAB) finds.

The increased spending shows that more marketers are coming to realize the value of the pay-per-click (PPC) ad model. This growth doesn’t necessarily guarantee that PPC is any more effective than other means of advertising, but it has been known to deliver excellent visibility and engagement results. Clicks from paid search results produced 27 percent higher sales for online retailers in the first quarter of 2012 than a year prior, according to research by Internet Retailer

Other Big Winners

Mobile advertising continues to soar. The IAB report shows that the mobile channel generated $3 billion over the first six months of 2013, up from the $1.2 billion secured in the first half of 2012. That significant revenue gain not only represents an astounding 145 percent growth rate, but it now gives mobile 15 percent of the total online advertising pie. 

Digital video, which IAB files under display advertising, drove in $1.3 billion in the first half of the year, a 24 percent increase from the figures recorded for the same period in 2012. Video has quickly become one of the fastest-growing opportunities in online advertising. Its ability to elicit the viewer’s emotion and engage beyond traditional media makes it a powerful weapon for content marketing initiatives.

The IAB’s data shows that marketers are pouring their budgets into video; other research gives deeper insight into why. According to CMO, online video ads have tremendous potential to enhance visibility, engagement and retention. People are 27 times more likely to click a video ad than they are a standard banner ad. 

IAB also provided insight that might give marketers an idea of how active their niche is in the online ad game. Retail, financial services and automotive industry advertising accounted for 46 percent of all revenue, attributing to 20 percent, 14 percent and 12 percent, respectively. 

Conducted by PwC US, The IAB Internet Advertising Report is a bi-annual report that tracks revenue across all channels that sell online advertising. Search was the biggest winner in terms of revenue but, as the findings reveal, numerous other areas are thriving as well.

Photo credit: Flickr

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