Search Budgets in Q4 2009 Relative to Q2 and Q3

Compared to the average of Q2 and Q3 2009, search budgets in Q4 are up as much as 30%, with the highest increase in retail and electronics.Even non-seasonal services like financial services are up as much as15%, suggesting a more fundamental shift in spending.

Q4 Notable Sector Gains Versus Q2/Q3 Average: Retail: +30%; Travel:+20%; Services/Legal: +20%; Services/Insurance: +15%; Auto: +10%.

Seasonal Spending Recovery 

In November, overall search spend was significantly higher than in September (+25%), though only slightly higher than October (+5%). This reflects seasonality and correlates highly with recent improvements in the economy. It also reflects Cost Per Click (CPC) spikes as advertisers spend more to meet competition, protect their brand terms and offload their end-of-year budgets.

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Gary

www.phillyadwords.com