As more consumers are going online to purchase items and services from retailers, these merchants are reaching out to target audiences through advertisements on search engines, which has led to an increase in paid search spending in the third quarter.

According to Internet Retailer, research from marketing firm IgnitionOne found that purchases made from paid searches rose 17.8 percent year-over-year in 2012's third quarter. While this is a significant annual increase, this quarter's totals were relatively unchanged from the second quarter. The reason for this slow growth could be attributed to concerns over the American and global economy.

Things are looking better for overall U.S. retail sales. The New York Post reports that for the month of August, consumer spending grew by 0.5 percent, representing the highest increase since February, according to a study by the Commerce Department. Retailers saw a 0.9 percent jump in consumer purchases throughout the month, compared to July. However, some sectors saw a slow down in sales, including clothing and electronics.

The source states that research from the University of Michigan showed that consumer sentiment has increased to its highest level in five years, which could help further boost retail sales nationwide this holiday season.

This entry was posted by Retail Pro on Friday, September 28th, 2012 at 11:39 am .