Tech and Consumer Electronics Marketers Boost Paid Search

The recession seems to be abating in some industries. As a result, companies in growing sectors like technology and electronics, are putting more money into advertising. Specifically, vendors in these industries are using paid search to increase sales and market share.

Covario, Inc., in its quarterly Global Search Spending Analysis, says that high-​tech and electronics marketers spent 20% more on paid search during the second quarter this year when compared to 2009. Analysts also believe that by the end of 2010, the total increase for the year will be an 18% jump in paid search spending.

Craig Macdonald,  senior vice president and chief marketing officer of Covario, notes a couple of market changes that have accompanied the increased demand for paid search services. Google Instant debuted in September and makes use of key-​phrase prediction technology to yield real-​time search results. As a result, paid search clicks are up 4% and have stolen market share from organic search. Marketers are also shelling out more to compete for great results on the new Yahoo! Bing platform. In general, the allocations here have been about 5% higher. I mentioned in a post last week that advertisers were expect to spend more money in this platform, partly because of confusion and partly because the merged platform affords them fewer opportunities to bid.

Marketers in many consumer products categories are expected to spend heavily on paid search through the end of the year. As they compete to improve their yields from this investment, the main beneficiaries of this spending continue to be Google with its 76.1% market share and the Yahoo Bing! Alliance with 23.9% of paid search spending.

[Sources: Covario Sees 20 Percent Uptick in Search Spending Among Tech Clients, Now Expects 18 Percent Growth for Year. Covario​.com. 5 Oct. 2010. Web. 18 Oct. 2010; Macdonald, Craig. Paid Search Market share Up Strong at 3rd Quarter Mid-​Point. ActionableInsights​.covario​.com. 20 Aug. 2010. Web. 18 Oct. 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.