Today, we released our Q3 2012 Global Dig­i­tal Adver­tis­ing Update, which high­lights cur­rent dig­i­tal adver­tis­ing trends and pro­vides an out­look on what’s next for the indus­try. Our analy­sis shows that paid search spend­ing con­tin­ues to rise glob­ally. Fur­ther­more, the increase is com­ing from a growth in clicks and not from Cost-Per-Click (CPC) growth. Paid mobile traf­fic con­tin­ues to increase and by the end of 2012, we expect one in five paid search clicks to be orig­i­nat­ing from a tablet device or smart­phone. Interestingly, CPC, con­ver­sion rates and ROI dif­fer among PCs, tablet devices and smart­phones. Addi­tion­ally, the ROI on iOS devices is nearly two times bet­ter than Android in terms of adver­tis­ing mon­e­ti­za­tion advan­tage — prov­ing that opti­miz­ing mobile search spend by device can pay off.

For social media, the time­line changes on Face­book appear to have increased fan engage­ment with brands. We found that Face­book brand engage­ment is up 896% from a year ago! On the adver­tis­ing side, Face­book con­tin­ues to exper­i­ment with new and inno­v­a­tive ad for­mats and we antic­i­pate many of these for­mats to show impres­sive ROI mov­ing forward.

We remain opti­mistic on our out­look for dig­i­tal mar­ket­ing in the com­ing quar­ters. First, paid search spend should expe­ri­ence between 15 and 20 per­cent Year-Over-Year (YoY) growth in Q4. With the hol­i­day sea­son approach­ing, Q4, which is typ­i­cally strong in retail, will be impor­tant for Google Shop­ping as it tran­si­tions from a free to paid model. Mobile has been the big story for 2012 and will con­tinue to be a major focus in 2013 as mar­keters adapt to chang­ing con­sumer behav­ior – from desk­top to mobile devices.

Check out our full report for all the details and share your thoughts in the com­ments below!

- Dr. Sid Shah is direc­tor of busi­ness ana­lyt­ics for Media & Adver­tis­ing Solu­tions within Adobe’s Dig­i­tal Mar­ket­ing Business