Tech Firms Increasing Paid Search Spends

Interesting research findings from Covario on the rise of paid search among tech firms. Covario reports that Q1 spending was up 26% compared with the year-ago quarter, although it’s important to qualify that there was a 15% drop between Q4 ’09 and Q1 ’10. Still, an increase is an increase.

What’s interesting to me is the impact of Google Instant on paid search spends. Indications are that companies are increasingly buying more pay-per-click ads even on those terms that they’re doing well on organically.

“Covario expects click-through rates, CPCs and overall spending to increase on Google this year as a result of the impact Google Instant has on transferring clicks from natural search to paid search. The company “documented a rise of between 3% and 4% of all clicks transferring to paid search, meaning advertisers need to spend more on paid search for keywords where they do rank highly on natural search in order to maintain the same levels of traffic and conversions,” according to the report. (These are the listings where clicks will be transferred to paid search.)”

So, how about you? How is paid search balancing in your search strategy?

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