Spending on paid search advertising was up 1% from Q4 ’11 – a deceleration in growth from the sizeable amount of spending that occurred in the second half of last year. We expect sequential growth to remain in the 1 – 4% range for Q2 ’12, and then gain momentum again in the third and fourth quarters. Advertisers in all verticals are expected to benefit from one-off drivers such as the Summer Olympics, the U.S. presidential elections, and the European Football Championships, while the PC industry, in particular, is poised for enormous marketing pushes on behalf of Windows 8 and the flurry of new laptops, desktops, and Ultrabooks set to debut with it.

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