Paid search investment 'up'

23rd June 2008

Spending on paid search increased in the four weeks following Google's changes to its trademark rules, a new report indicates.

Under the new regulations, trademarked terms have been open to bids from companies that do not own them since May 5th.

Robin Goad writes on his blog for web traffic monitoring service Hitwise that the changes preceded a hike in paid search budgets as brands attempting to maintain their hold over competitors.

He asserts: "It seems that the top brands in the UK have chosen to increase paid search activity on their own brand terms rather than lose traffic to competitors or affiliates."

The figures follow an Enders Analysis prediction, reported by Reuters, that internet advertising expenditure is to outgrow TV advertising investment by the end of the year.

According to the Hitwise statistics, the four weeks following May 5th saw travel companies hike their paid search spending to 26.6 per cent from 18.4 per cent, while retail brands increased their paid search rate to 16.2 per cent from 11.3 per cent.