Paid search continues to deliver for marketers. Hanapin Marketing’s new State of Paid Search report shows that a majority of businesses are increasing their budgets for this format and will do so next year. In 2014, businesses will be looking for ways to improve conversion rates in their pay per click (PPC) campaigns.
The Hanapin study includes marketers of all sizes but is more heavily weighted, 63%, to those that have PPC budgets exceeding $300,000. The industries represented in this study ranged from retailers (16%) to lifestyle marketers (8%) and education businesses (7%) to others (54%).
This year, these marketers say the following efforts are important or very important: Text ads (95%) and remarketing (64%). 68% of these businesses rate social ads as moderate to not important. In terms of where the search budgets are allocated, the following percentages apply:
- Facebook 52%
- All other social networks 20%
- Search networks 64%
Search leaders have positive feelings for the format. About 83% feel good or very good about the PPC market. At least 84% believe they should be spending more on PPC. That may explain why, in 2014, 72% of these businesses will increase their PPC budget. The increase in spending will be distributed across the following networks:
- Google Adwords 73%
- Bing Ads 55%
- Display networks 52%
- Facebook 52%
- LinkedIn 26%
- Twitter 24%
- Other social 18%
For 85% of marketers, conversion rate optimization will be a big focus in 2014. Other goals for next year include entering new ad networks (59%), investing in automation software (45%) and increasing tag management (12%).
These findings suggest that paid search is a key part of the marketing strategy for businesses who need to reach online consumers. If you're using paid search, are you planning to make conversion rate optimization a higher priority?