Trends in Paid Search Q2 2013The Search Agency

P ropr i e t a ry and Con f i den t i a l

Overall Paid Search Trends

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3P ropr i e t a ry and Con f i den t i a l

Overall Trends in Paid Search

Overall impressions increased 7.5% YoY and 20% QoQ.

4P ropr i e t a ry and Con f i den t i a l

Overall Trends in Paid Search

Overall search engine clicks increased 5.2% YoY but decreased 6.4% QoQ.

5P ropr i e t a ry and Con f i den t i a l

Overall Trends in Paid Search

CTR across search engines decreased 2.1% YoY and 22% QoQ.

6P ropr i e t a ry and Con f i den t i a l

Overall Trends in Paid Search

Overall CPC across search engines increased 10% YoY and 17.3% QoQ.

7P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Google’s clicks increased 4.1% YoY and Bing’s clicks increased 12.9% YoY. Total clicks fell on both engines in Q2, dropping 7.1% on Google and

4.1% on Bing QoQ.

8P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

CPCs increased across both search engines YoY. Google’s average CPC increased 8.3% YoY and 21.2% QoQ, while Bing’s average CPC

increased 18.9% YoY and remained relatively flat QoQ.

9P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Google’s desktop CPCs increased both YoY and QoQ, by 9.6% and 20% respectively. Smartphone CPCs decreased 4.9% YoY but increased

23.8% QoQ. Lastly, tablet CPCs increased 25.3% YoY and 27.8% QoQ.

10P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Bing desktop CPCs increased 21.9% YoY and 1.1% QoQ. Smartphone CPCs decreased 3.7% YoY and more dramatically QoQ, by 13.8%. Tablet

CPCs increased 8.9% YoY and remained relatively flat QoQ.

11P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Google’s click share fell to 86.9% in Q2, marking a minimal decrease YoY and QoQ.

12P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Google’s spend share fell to 83.8% in Q2—a 2.5% decrease YoY and a 3.1% increase QoQ.

13P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Smartphones and tablets continued to gain click share on Bing in Q2. Desktop share fell to 83.5%—a 9.1% decrease YoY and a 3.1% decrease

QoQ.

14P ropr i e t a ry and Con f i den t i a l

Trends in Paid Search by Search Engine

Smartphones continued to gain share on Google in Q2, while tablet share increased YoY and decreased QoQ. Desktop click share fell to 71%,

marking a 14.9% decrease YoY and a 1.2% decrease QoQ.

P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

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16P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Desktop spend share decreased by 12.5% from 85.2% to 74.5% YoY and decreased by 2.5% from 76.5% QoQ. Smartphone spend share increased by

70.4% from 8.4% to 14.2% YoY and increased by 12.0% from 12.7% QoQ. Tablet spend share increased by 74.7% from 6.4% to 11.2% YoY and increased 4.2%

from 10.8% QoQ.

17P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Desktop impression share decreased 12.4%, from 89.2% to 78.1% YoY.

Tablet impression share increased 77.9%, from 5.3% to 9.5% YoY.

Smartphone impression share increased 131%, from 5.4% to 12.4% YoY.

18P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Desktop click share decreased 14%, from 84.5% to 72.7% YoY.

Tablet click share increased 53.7%, from 7.2% to 11% YoY.

Smartphone click share increased 97.1%, from 8.3% to 16.3% YoY.

19P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Smartphone CPC decreased 4.8% YoY but increased 21% QoQ.

Tablet CPC increased 25.1% YoY and 24.5% QoQ.

Desktop CPC increased 12% YoY and 15.9% QoQ.

20P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Google’s share of total clicks on tablets decreased from 93.9% to 89.1% YoY.

21P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Google’s click share on smartphones increased from 93.4% to 94.1% YoY but fell from 94.7% QoQ.

22P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Device

Google’s share of total clicks on desktops decreased 2% from 86.7% to 84.9% YoY.

P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Ad Format

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24P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Ad Format

PLA spend increased 347.2% YoY and decreased 14% QoQ.

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Paid Search Trends by Ad Format

PLA clicks increased 382.5% YoY but decreased 35.7% QoQ.

26P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Ad Format

PLA CPC decreased 7.3% YoY but increased 33.8% QoQ.

27P ropr i e t a ry and Con f i den t i a l

Paid Search Trends by Ad Format

13.1% of total PLA clicks came from tablets. Share of PLA clicks from smartphones more than tripled QoQ and desktop clicks decreased 12.5%

QoQ.

Trends in Paid Search Q2 2013The Search Agency