Adobe Finds Search Advertising Spend Continues to Climb With Untapped Opportunity in Mobile

Adobe Systems Incorporated (Nasdaq:ADBE) today released findings from its Adobe® Digital Index report focused on digital advertising industry insights for Q2 2012, plus an outlook for the remainder of the year. Each year, Adobe analyzes advertiser and user behavior from more than $2.5 billion in annualized spend under management. According to the report, search spend among advertisers remains strong with a growing emphasis on mobile devices as tablet conversion rates surpass desktop conversion rates. Additionally, the report shows that consumer engagement on Facebook has increased dramatically as marketers find ways to utilize improvements to Facebook’s platform.

Key Report Findings for Q2 2012

• Search advertising continued to grow in both the United States and Europe, representing a key channel for digital marketers. Search spend in the United States grew by 13 percent Year over Year (YoY) while ROI steadily improved. Additionally, growth rates for search spend were strong in the UK and Germany, representing an 18 percent and 12 percent increase, respectively, YoY.
• Mobile traffic, notably from tablets, continued to demonstrate a significant opportunity for advertisers. While tablet Cost Per Click (CPC) remained lower than desktop CPCs, conversion rates were 20 percent higher. This indicates there are significant opportunities for marketers to increase ROI by shifting advertising spend to tablet devices.
• Brands continued to invest heavily in Facebook to drive fan growth, which grew by 21 percent Quarter over Quarter (QoQ) and 84 percent YoY worldwide. Facebook engagement among brands also grew by 60 percent QoQ and 338 percent YoY.

Outlook for Q3-Q4 2012

Based on a client index from the past three quarters (beginning in Q3 2011), some key trends are emerging:

• Search spend in the United States is expected to increase at a rate of 10 to 15 percent YoY. If digital advertising continues to be robust, we can expect 15 percent growth in both the UK and Germany, two of Europe’s biggest digital markets.
• Tablet and smartphone traffic (projected to represent 16 to 20 percent of all search spend by year’s end) is estimated to represent 20 percent of all online traffic by the end of the year. Additionally, marketers are likely to allocate more search spend to mobile, especially tablets, to increase return on advertising investment.
• Facebook brand pages are estimated to grow an additional 45 percent by the end of 2012 – which could help brands boost consumer engagement. This will likely be attributed to changes in the Facebook platform, such as Facebook timelines for brands, and Facebook measurement.

Quote

David Karnstedt, senior vice president, Media and Advertising Solutions, Digital Marketing Business, Adobe

• “With accelerated consumer adoption of tablets and smartphones, as well as social marketing growth, marketers are shifting to adopt a multi-channel digital advertising approach to reach their target audiences. Advertisers should be cognizant of the next generation of digital marketing to better measure, manage and optimize their marketing investments for maximum return.”

Global Digital Advertising Update Methodology

Full details of the Q2 2012 Global Digital Advertising Update, including other Adobe Digital Index reports, can be downloaded here or at CMO.com. The analysis of digital marketing and Facebook performance is based on data derived from Adobe AdLens™ and Adobe Social, part of the Adobe Digital Marketing Suite. Data is based on a client index across key verticals including retail, entertainment, CPG, automotive and finance.

About Adobe Digital Index

Adobe Digital Index publishes research on digital marketing and other topics of interest to senior marketing and e-commerce executives across industries. Research is based on the analysis of select, anonymous and aggregated data from over 5,000 companies worldwide that use the Adobe Digital Marketing Suite, powered by Adobe technology and solutions, to obtain real-time data and analysis of activity on their websites.

About the Adobe Digital Marketing Suite

The Adobe Digital Marketing Suite offers an integrated and open platform for online business optimization, a strategy for using customer insight to drive innovation throughout the business and enhance marketing efficiency. The Suite consists of integrated applications to collect and unleash the power of customer insight to optimize customer acquisition, conversion and retention efforts as well as the creation and distribution of content. For example, using the Suite, marketers can identify the most effective marketing strategies and ad placements as well as create relevant, personalized and consistent customer experiences across digital marketing channels, such as onsite, display, e-mail, social, video and mobile. The Suite enables marketers to make quick adjustments, automate certain customer interactions and better maximize marketing ROI, which, ultimately, can positively impact the bottom line.

About Adobe Systems Incorporated

Adobe is changing the world through digital experiences. For more information, visit www.adobe.com.

© 2012 Adobe Systems Incorporated. All rights reserved. Adobe, the Adobe logo, and Adobe AdLens are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.

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