Mobile takes 38% of all paid search clicks in the U.K., the highest on record; and Germany’s high CTR and low CPC makes it very attractive for paid search advertisers

London (August 4, 2014) – Quarterly search advertising spend across Europe Middle East & Africa (EMEA) has increased by 24% year-on-year (YoY) in Q2 2014 with sales revenue from paid search up 23% according to the latest quarterly data from Kenshoo (www.Kenshoo.com), the global leader in predictive media optimisation technology. The study indicates that EMEA marketers are getting strong results from search advertising with more clicks on their ads and more sales conversions.

The data is presented in a new Kenshoo infographic, EMEA Search Advertising Trends Q2 2014, highlighting key quarterly metrics and benchmarks for paid search based on advertisers and agencies who manage search advertising on the Kenshoo platform across EMEA.

The research reveals the total volume of clicks on search ads rose by 11% YoY in Q2 while total impressions have fallen by 6%. This indicates that advertisers are getting better at targeting their ads and running more efficient campaigns which also means click-through rate (CTR) has risen by 17% YoY to 1.8% in Q2 2014.

“The data shows a healthy paid search market in EMEA, with advertisers enjoying increasing revenue from their advertising through more efficient campaigns,” said Justin Thorne, regional marketing director for EMEA at Kenshoo. “Advertisers’ confidence in the paid search channel and strong demand for keywords means the price of search advertising has continued to rise – reaching a cost-per-click (CPC) of €0.43, up from €0.38 in 2013.”

In the U.K., ads shown on mobile devices accounted for over a third (36%) of all paid search spend in Q2 2014, which is the highest on record. In turn the U.K. also witnessed the highest proportion of clicks coming through mobile ads – 38% of all paid search clicks during the quarter.

“The increased share of spend and clicks taken by mobile could in part be due to the success of Google’s enhanced campaigns which simplifies the process of creating Google AdWords campaigns. Since migration to enhanced campaigns, search advertisers no longer have to run separate campaigns targeting desktops, tablets and mobiles – all devices can be served with ads within the same campaign, making it much easier to target mobile devices,” explained Thorne.

The growth and competition for mobile search ads in the U.K. has driven up the price (CPC) of mobile paid search. The price of ads on phones has seen a big rise, reaching a CPC of €0.44 (from €0.31 in Q2 2013), while ads on tablets continue to be sold at a premium with a CPC of €0.46 (up from €0.40 in Q2 2013).

Germany continues to demonstrate efficiency in paid search advertising with high a relative CTR of 2.0% and low relative CPC of  €0.31. The CPC for France in Q2 was €0.45 with the CTR of 0.7% reflecting a more discerning French consumer carefully evaluating adverts before clicking. Paid search in France is expected to increase by 5% in 2014 per Zenith Optimedia and will accelerate more quickly in the next 5 years.

Country-level Cost-per-Click and Click-through Rate

counry-cost-per-click

The paid search results in the study are based on five quarters of performance data from over 6,000 Kenshoo advertiser and agency profiles across all regions, including 17 vertical industries and 51 countries, spanning the Google, Baidu, Bing, Yahoo!, and Yahoo! Japan ad networks. Only accounts based in EMEA with five consecutive quarters of stable data from April 2013 through June 2014 were included in this analysis.

The Kenshoo infographic, EMEA Search Advertising Trends Q2 2014, can be viewed here: www.kenshoo.com/Kenshoo-Search-Ad-Trends-Q2-2014-EMEA

About Kenshoo
Kenshoo is a global software company that engineers cloud-based digital marketing solutions and predictive media optimisation technology. Brands, agencies and developers use Kenshoo Search, Kenshoo Social, Kenshoo Local, Kenshoo SmartPath, and Kenshoo Halogen to direct more than £120 billion in annualised client sales revenue through the platform. Kenshoo is the only Facebook strategic Preferred Marketing Developer with native API solutions for ads across Facebook, FBX, Twitter, Google, Yahoo, Yahoo Japan, Bing, Baidu and CityGrid. Kenshoo powers campaigns in more than 190 countries for nearly half of the Fortune 50 and all 10 top global ad agency networks. Kenshoo clients include Accor, GroupM, Havas Media, John Lewis, and Tesco. Kenshoo has 23 international locations and is backed by Sequoia Capital, Arts Alliance, Tenaya Capital, and Bain Capital Ventures. Please visit www.Kenshoo.com for more information.

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