Google Search Spend Growth Continues Deceleration, Despite Infusion of Google Shopping Traffic – Advertisers Faced Stronger Year-Ago Comps in Q3, Achieved Higher ROI

Charlottesville, VA (PRWEB) October 10, 2012

Across its client base, which includes over 40 of the top 500 internet retailers, RKG found same-site spending growth of 18% for Google in Q3, down from 34% in the previous quarter. Google paid click growth slipped to 21%, while average cost-per-click fell 3%.

RKG Senior Research Analyst Mark Ballard, who oversaw the report, pointed to two key factors to explain the trends, noting that above all, the year-ago comps have strengthened considerably. In the third quarter of 2011, Googles official revenue growth hit a rate not seen for three years before, and not seen since. Ballard added, advertisers are also seeing considerably higher ROI, largely due to the immaturity of the Product Listing Ads marketplace, which drove 20% of Google clicks.

The RKG Digital Marketing Report shows click volume from Product Listing Ads (PLAs), the ad format powering Google Shopping results, growing at a rate of 262% in Q3. But, the report found that to be down from an even stronger growth rate in the prior quarter. Ballard noted that, our results may be the exception here. Our clients were early adopters of this format and have achieved huge growth from it dating back to 2010. For Google, there may be some upside from those advertisers who have been slow to recognize the importance of this segment.

In the mobile space, RKG shows tablets nearly tripling their share of paid clicks to 9% and slightly narrowing the CPC gap with desktop to 5%. Smartphone CPCs remained 54% lower than desktop. Combined, mobile generated 16% of paid clicks, compared to a 21% share of organic visits, as advertisers sought to limit spending on lower quality smartphone traffic.

The full RKG report offers over 40 charts with additional insights and analysis on paid search, search engine optimization (SEO), social media, comparison shopping engines, multi-channel attribution and more.

Among their published results, RKG found:

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