Today we released the RKG Digital Marketing Report
for the fourth quarter of 2011, offering data and analysis for paid
search, SEO, CSEs, Facebook advertising and more. We’ve taken steps to
make sure our report is representative of the larger marketing fields
covered so that it can serve as a credible benchmark for individual
advertisers and offer insights into the numbers the major players like
Google and Yahoo end up reporting in their financials.
Historically, our approach to quarterly analysis has been a strong
predictor of the engines’ high-level performance and, if that connection
holds, it looks like year-over-year growth in Q4 was the strongest it
was for all of 2011. RKG also takes pride in being on the forefront of
uncovering and taking action on subtler industry trends and developments
and we’ve included some of those as well.
We hope you’ll take the opportunity to download the full Digital
Marketing Report, which features nearly 50 charts with our analysis.
Among the highlights include:
Paid search spend growth accelerated in Q4 to a 31% year over year
rate, up from 20.9% in Q3. Higher click-through rates were the primary
driver as impression growth was limited to 5.5% and cost-per-click
declined 1.4% Y/Y.
Google paid search spend increased 38.5% Y/Y on a 46% increase in
clicks. One of the most interesting metrics in Q4 was CPC, which we saw
decline 5.2% on Google. Google hasn’t reported a CPC decline in eight
quarters.
Bing and Yahoo non-brand paid search spend fell 6.1% Y/Y in Q4, an improvement from Q3 as 2010 comps weakened.
Google increased its search lead over Bing & Yahoo in Q4,
generating 86.5% of paid clicks and 83.5% of organic search visits.
Mobile, including both smartphones and tablets, contributed 9.6% of
paid and organic search traffic for the full fourth quarter of 2011, but
surged to 14.2% of paid traffic at the end of the year.
Facebook generated 3.6% of referral traffic to sites on average in Q4
and 0.6% of all traffic, speaking to a large growth opportunity.
Google Product Listing Ads
(PLAs) generated just 1.4% of our clients’ Google spend and 1.3% of
their Google revenue in Q4 2010. This year, PLAs grew sharply to make
up 7.5% of Google spend and 8.4% of Google revenues in Q4.

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