A new report has revealed that spending on pay per click (PPC) in the US soared by almost 27 per cent in the three months to September compared with 2007.

According to SearchIgnite, marketers increased spending across all of the major search engines, with Google continuing to attract the bulk of this expenditure.

Retailers increased PPC spending by 1.5 per cent year-on-year and experienced marginally higher conversion rates, the report showed.

Roger Barnette, president of SearchIgnite, said that search advertising holds benefits for those looking to reinforce their marketing strategies during the current downturn.

"The strength of this ad market in today’s economy suggests that paid search continues to be a highly profitable and efficient digital marketing channel for brands," he explained.

UK spending on paid search rose by 28 per cent in the first half of 2008 compared with the same period in 2007, according to recent figures from the Internet Advertising Bureau.

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