Report: Small-business search spending surges

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Irvine, Calif.—Small businesses increased their search spending dramatically in the second quarter of this year compared with the same period in 2009, according to a new report from local online advertising company WebVisible Inc.

According to the company’s “State of Small Business Online Advertising Q2 2010,” the average small-business advertiser spent $2,231 on search advertising in the quarter, up 159% over the same period last year. This continues the strong year-over-year gains reported by WebVisible, with spending up 91% in the first quarter, and 111% in the final three months of 2009.

Search spending increases are being complemented by user conversion: 43% of all clicks resulted in such activities as form fills, video views, printed driving directions and bookmarking, up by more than a third over last year, which suggests that users are taking advantage of additional website options provided by advertisers, according to WebVisible.

The company’s report examined trends among its more than 12,000 U.S. advertisers, representing about $23 million in search ad spending.

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