In the past year, more than $400 million in search engine advertising spending was managed by Efficient Frontier. The terabytes of data we have collected in the process can offer meaningful insights into trends in the search marketplace, and I am excited to have the opportunity to share them with you on this blog.
At any given time, Efficient Frontier's clients have over 45 million ads appearing on the search engines and their content networks. In every case Efficient Frontier is managing the advertiser's spend to well-defined performance metrics, so where we spend our clients’ ad dollars is a very good indication of the intrinsic value of the different components of the search engines' networks. The chart below shows just how strong the shift has been toward Google over the past 3 years.
The GOOG stock frenzy and recently announced Q3 growth of 57% from a year ago is reflected in actual spending levels: In October 2007, Efficient Frontier’s US clients spent 74% more on Google than in October 2006. The earnings announcement also states that 34% of Google’s revenue came from its partner network. Only 4% of Efficient Frontier’s US Google spend occurred on AdSense in October 2007, indicating that AdSense’s popularity does not extend as deeply to the ROI conscious advertisers among Efficient Frontier’s client base as it does with Google’s entire customer base. Stay tuned to this blog for more data on trends in content versus search.
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