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LOS ANGELES, CA -- (Marketwired) -- 07/17/14 -- The Search Agency, a global online marketing firm and the largest independent U.S. search marketing agency, today released its quarterly State of Paid Search Report for Q2 2014, which found that total clicks (36%), spend (22%) and CTR (58%) experienced YoY growth, with only CPCs decreasing (10%) from Q2 2013. Much of the growth can be attributed to increased advertising on mobile devices, including both tablets and smartphones, as overall mobile spend share has reached 29%. The quarterly report analyzed aggregated client data from various industries to identify paid search marketing trends across search engines and devices on a year-over-year (YoY -- Q2 2013 to Q2 2014) and quarter-over-quarter (QoQ -- Q1 2014 to Q2 2014) basis.

"Consumers are continuing to extend their use of mobile devices into daily life, especially shopping, and this trend is driving search growth," said Delia Perez, SVP Marketing Strategy at The Search Agency. "This trend is evident in the large jump in mobile clicks on Google's Product Listing Ads (PLAs). In the coming quarters, we expect to see continued smartphone share growth, as well as continued interest in the Bing platform."

Additional findings from The Search Agency's State of Paid Search Report include:

Bing Wins Spend, Google Wins Clicks
Spend and clicks on both Google and Bing increased YoY. Spend on Bing increased 53%, outpacing Google's 16% increase. But, Google's clicks (38%) increased more substantially than Bing (20%) YoY. Bing's increase in spending was in large part due to its growth in CPCs (20%) compared with Google's decline by 16% YoY. Bing also gained impression share at Google's expense, reaching 21.3% of all search impressions in Q2 2014.

Smartphone Usage Erodes Desktop Dominance
Mobile devices continue to gain click share, eroding the dominance of desktops. Mobile clicks on Google account for 32% of total clicks, while on Bing mobile clicks have reached 26%. The shift can be largely attributed to the fact that mobile devices are becoming a "search anytime" device, no longer reserved for evenings and weekends. Smartphone searches have begun to shift toward the middle of the week, while tablet use continues to be favored on weekends.

PLAs Continue to Drive Google Growth
Google PLAs increased to 31% of the total paid search impressions for advertisers using these ads, which is up from 28% in Q2 2013. PLAs on smartphones made big YoY gains, reaching 12.7% of all PLA clicks. Mobile clicks now account for one-third of all PLA clicks, which suggests that users are increasingly using their smartphones for shopping.

Yearly Growth Remains Solid
Total clicks, spend and CTR all increased YoY with only CPCs falling. Clicks increased 36%, spend increased 22%, while CTR grew 58%, and CPCs decreased by 10% YoY. While overall spend increased, the landscape continued to shift in favor of mobile devices, with smartphone spend share reaching 15.5% and tablet spend share moved to 13.5%. Overall mobile spend share reached 29% in Q2 2014, up from 22.8% in Q2 2013.

To uncover key trends for the Q2 2014 State of Paid Search Report, The Search Agency extracted client data from search engine advertising tools. All results are based on U.S. campaigns only.

To download the report, go to http://www.thesearchagency.com/classroom/research/.

About The Search Agency
The Search Agency is a global online marketing firm that combines high-tech and high-touch strategies to help clients engage their customers online and measure ROI beyond a reasonable doubt. With a deep-rooted history in paid search and SEO, The Search Agency understands how activity on the web intersects at search, and executes smart digital marketing strategies that drive measurable results across multiple platforms. Services include Paid Search, SEO, Landing Page Optimization, Display Media, Social Media and Comparison Shopping Management, which are strategically leveraged to maximize the efficacy of clients' integrated marketing campaigns. The company is one of the nation's largest and fastest growing search marketing firms -- named the largest independent U.S. search marketing agency by Advertising Age and among Deloitte's 2011 Technology Fast 500™. Founded in 2002, The Search Agency has grown to more than 180 employees worldwide with headquarters in Los Angeles, CA, and additional offices in San Francisco, East Greenwich, Baltimore, London, Toronto and Bangalore. For more information, go to http://www.thesearchagency.com.