Pay-per-click prices down in third quarter

A recent study from independent search marketing agency Covario found that paid search advertising was up 24 percent year-over-year in Q3 2011.

The company's Global Search Advertising Spend Analysis also found that pay-per-click advertising was up 26 percent from last quarter, which study author Craig MacDonald attributes to strong back-to-school spending and growth in the Asia-Pacific region.

A pay-per-click marketing tactic may be part of a company's local SEO campaign, and works by allowing businesses to bid on certain keywords they want to rank highly for.

In addition to the upward global trend, researchers also found that 75 percent of the company's paid search technology clients recognized that paid social media spending for Facebook advertising is also integral to success.

Covario expects overall paid search spending will reach as high as 22 percent in 2012.

Search Engine Land reports that a similar study by Marin Software found that click volume increased 22 percent during Q3 year-over-year, and correlated with lower cost-per-click prices, indicating enhanced marketing efficiency.

Specifically, the company saw a 19 percent increase in clicks on Google.