Let the celebration begin! Media advertising spend forecasts become a reality in Q1. We’ve all been hearing the positive signs that the U.S. economy is improving. Slow. But, improving. In the Nielsen Wire, ad spend for the close of 2011 showed an increase of 24% growth on the internet. And, Nielsen shared a very optimistic outlook for continued growth in 2012. Analysts suggest the U.S. presidential election, The European Cup, and the London Olympics will also continue to a rise in ad spend. This all sounded great to me at the end of 2011. We could use some positive economic signs. But, honestly, I was holding my breath to see how Q1 ended and what industries were adjusting their forecasts for media spend. I can finally breathe…reports confirm we are on target. And, still analysts are sharing a positive outlook for the remainder of 2012.
Here are some highlights from Adobe’s Global Digital Advertising Q1 2012 Update:
- Search spend increased year over year 16 % in the U.S.
- In the U.S., ROI increased by 11 % year over year
- In Q1, mobile spend reached 8 % of all search spend in the U.S.
- Google CPC fell by 5 % year on year
- Google search algorithmic changes contribute to growth in search spend
- Facebook post engagement increased 176 % year on year
- Facebook spend has grown by 93 % year on year
- Display advertising continues to increase in strength
The report also highlights that Google’s search algorithmic changes more than made up for the drop in CPC. And Bing/Yahoo CPC rates increased by 18 % as marketers took advantage of better return per click (RPC) rates. The bottom line is that the Bing/Yahoo ROI advantage over Google no longer exists.
Adobe’s Outlook for Q2-Q4 2012

- Tablet and mobile spend will make up 15 to 20 % of all search spend by the end of 2012.
- Facebook CPC rates are expected to decelerate. Facebook Timeline for brands—Brands that measure success of Facebook via engagement will probably spend more on Facebook advertising to build their audiences and engage with fans in a meaningful way.
- Search spend in the U.S. will increase 10 to 15 % for the rest of 2012. This rate is consistent with macro trends. Search spend is typically indicative of the current state of the economy—as the medium allows advertisers to react quickly to marketplace changes—thus providing a positive outlook for both search and the U.S. economy.
It will be interesting to see how Google’s Adwords for Video is adopted. If you missed the launch of Google Adwords for Video, Search Engine Watch published a great article, Getting Started on Google AdWords TrueView Video Ads, during the beta launch. The screens may have changed, but the images of TrueView are very helpful for newbies.
I hope you find the report helpful as you review your budget planning for the remainder of 2012.
-Kim
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