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