Q2 Search Engine Performance Report: Google gets $1.10 of Every New Search Dollar

Today our US Search Engine Performance Report: Q2 2008 was released. Analysis of data from our client index showed that Google took more than its fair share of the overall increase in search spending: for every new dollar spent on search in Q2 2008 versus Q2 2007, $1.10 went to Google. Yahoo lost $0.09, and Microsoft lost $0.01. In other words, advertisers are putting all of their new search dollars into Google, and pulling money out of Yahoo Search and Microsoft Live Search.

On a quarter to quarter basis, however, the allocation of search marketing dollars did not fundamentally change, which is an interesting point in light of the heated negotiations among Yahoo, Microsoft and Google over the past several months. Google maintained its 77.4% share of US search marketing dollars, while Yahoo captured 17.8% of spending and Microsoft Live Search maintained its 4.8% share. Microsoft Live Search and Yahoo Search still have good ROI in comparison to Google, which makes them essential marketplaces for advertisers that need to meet their increasingly scrutinized revenue targets.

Average CPCs for non-financial services advertisers on Google were up 14% from Q2 2007 to Q2 2008, while CPCs on Microsoft Live increased by 5.6% and Yahoo CPCs dropped 7%. We track financial services CPCs separately, since they are so much greater, as you can see here, and have behaved differently over the past year given the turmoil in the mortgage sector and other financial markets. Financial services CPCs increased 19% on Google over the past year, but declined significantly on the other engines. Bloomberg has a more detailed analysis of CPC trends here.

Our report also shows that Google  dominates the western character set of search advertising: Efficient Frontier places ads in the US, UK, France, Germany, Italy, Spain, Brazil, Mexico, Argentina, India, and Australia, and accounts for 75% or more of search dollars in those countries. We began placing ads in China this year, which is dominated by Baidu. Historically within Efficient Frontier's client base Yahoo has been the leader in Japan, but in Q2 Google picked up 7 percentage points of share, and accounted for a majority 56% share of search adverting spend in Japan.

Comments

[sajjad]

Thanks for this structured info, I like the article.

[Pay Per Click Journal]

Seems Google is dominating in every field related to computer/technology. It's quite scary - taking over?

[Jason]

Google is dominant player in Vietnam also

[Rock]

Your US search engine performance report is good. But i am not understanding why Google took more than its fair share of the overall increase in search spending for every new dollar spent on search in Q2 2008 versus Q2 2007, $1.10 went to Google?

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Rock

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[Efficient Frontier]

By saying that Google took $1.10 of every new search dollar we mean that Google has increased market share in a growing search market. Perhaps an example would make it clearer. If we had said "Google gets $0.76 for every new search dollar", we are saying among new spend coming into search Google was getting 76% of the new money. In this case, we mean Google is getting ALL of the new spend AND taking market share from the other engines at the same time.

[uk seo firm]

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