New report: mobile and social boost growth in paid search technology
Econsultancy published an update to its PPC Bid Management Technology Buyer's Guide. The report estimates that the market for PPC bid management technology will grow by 17% in 2012, in line with the overall North American search sector, which is predicted to grow from a value of $22.9 billion, to $26.8 billion in 2013.
The report shows that many areas of digital are increasingly integrated, with the biggest opportunities for growth in this sector coming from mobile paid search, a focus on multichannel retailing and the continuing forward march of social media.
Social media has huge implications for the future of pay-per-click ads, since social gives marketers access to a vast array of user data that enables them to make advertising highly personalised and targeted and increasingly relevant. Social websites also enhance the familiarity of the brand, which can have a significant impact on clickthrough rates.
Part of the impact of social media on pay-per-click ads stems from the increasing significance of recommendations from a trusted network of family and friends, which has a strong influence on customer purchase behaviour and the path to conversion.
In 2011, Google added the +1 button onto text ads, illustrating how personal recommendations can be incorporated into paid search. As well as the +1 button, AdWords now also includes seller rating extensions. These extensions add reviews and star ratings from Google Product Search onto paid search ads in Google.
Beyond Google, ads on social media platforms (including Facebook, Twitter and LinkedIn) offer marketers the ability to deliver targeted and relevant ads, based on the data provided by the user in their profile information.
As social network advertising continues to develop, for the bid management technology industry, this means thetools and technologies need to evolve to manage new types of inventory.