February 14, 2011

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Ad Spending Up in US, Down in UK

Small businesses in the US are spending more on paid advertising and getting more online conversions than they were a year ago, according to a new report from online advertising company WebVisible.

According to the company, the average small business advertiser spent US$2,231 on search advertising in Q2 2010 – up 1.4 percent from Q1 2010 and 159 percent over Q2 2009. This increase in spending came even as cost-per-click rose 23 percent on Yahoo!, 9.8 percent on Bing, and 2.2 percent on Google.

WebVisible also found that nearly half of all clicks – 43 percent – resulted in a web conversion in Q2 2010, up 22 percent over Q1 2010 and 39 percent over Q2 2009.

“Over the past year, conversion activity increased on almost all website actions – filling out an online form, watching a video, bookmarking a page or printing driving directions,” said WebVisible CEO Kirsten Mangers.

“For advertisers this is great news,” Mangers adds. “The more options a company provides, the more actions a website visitor will take – giving advertisers multiple opportunities to establish a connection with each potential buyer.”

But WebVisible’s picture of online advertising in the UK isn’t so rosy. Cost-per-click rose by smaller percentages than in the US, with a 5.4 percent on Google and 3.7 percent on Bing. Still, average U.K. advertiser spending decreased by 1.8 percent from Q1 to Q2 2010.

According to the report, Bing’s click-through-rate in the UK dropped by 7 percent during the quarter. Google’s faired better, with an increase of 1.5 percent.


Related posts:

  1. US Ad Spending to Move to Mobiles
  2. Advertisers Boost Facebook Spending
  3. Fewer Click-Throughs for Facebook Ads

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