Covario: Paid search increases 52% for Tech Brands

Paid search may be one of the oldest forms of online advertising but it isn't losing steam. According to new research from Covario, paid search revenue has increased 52% year over year. The study focused on technology brands.

by Kristina Knight

Covario researchers compared Q1 2007 to Q1 2008 to reach that figure. More than 128 Covario clients search spending habits were examined; researchers found that Google platforms dominate search spending in Africa, Europe, the Middle East and North America. Google platforms account for just under 90% of search budgets; comparatively, Yahoo platforms are losing part of their search share. Yahoo's search platforms have seen a 12% decrease in spending YoY.

Though the news for search spending appears to be quite strong, other areas of online advertising are not faring as well.

Several firms have downgraded their 2008 online advertising forecasts. ZenithOptimedia is the most recent downgrade, revising their expected 3.7% ad spend growth to 3.5% ad spend growth. The company says that though online advertising revenue continues to grow worldwide, the spend is slowing. Especially in the Western Hemisphere where the American economy is slowing because of high gas and grocery prices, advertisers are taking another look at their budgets to conserve cash because the consumer base is not spending as they have in the past.