Efficient Frontier Insights

SES London

London this week saw the spectacle that is Search Engine Strategies. As the first big search conference gracing the 2009 London Calendar, industry analysts observed it with a keen eye as the benchmark for confidence in the sector. Delegate numbers certainly looked healthy on both advertiser and agency side. However, the number of exhibitors did seem noticeably less than in 2008. It was great to see the Efficient Frontier name branded all over the place as sponsors of the Beyond Fundamentals track. Efficient Frontier’s own search evangelist and UK Client Services Director Jonathan Beeston presented on two panels. Search Industry Update on day one of the conference drew a good crowd to find out about the recent trends in paid search. Jon discussed the numbers from Efficient Frontier’s latest quarterly Search Engine Performance Report. On day two Jon spoke about the ever popular Ads in a Quality Score World: where he discussed how to optimise the Google Quality Score and what to do if things go wrong. For copies of his presentations, please email sales-europe@efrontier.com

UK Search Spend Continues to Grow

For the first time we compare Y/Y data for our UK Search Engine Performance Report. Since we started reporting on UK statistics in 2008, we reported Q/Q but now the useful insight comes from the comparison to the previous year. Our recent Q4 UK Search Engine Performance report shows UK Search Engine Marketing spend grew by 11% from Q4 2007 to Q4 2008, as marketers continue to invest a significant proportion of their budgets in Search.

It is no surprise that the report found that Search spend increased by 14% between Q3 and Q4 2008 as is usually the case of increased online shopping over the Christmas period but should the numbers have trended the other way, this would have made a significant sign of the times. The report also illustrated that Google (the clear industry leader) captured market share from Yahoo, whose market share dropped from 13.9% to 8.4% Y/Y, which represents a 40% drop. Microsoft Live Search was able to maintain its presence in the UK market at 3.4% market share. It is interesting that while Google's Content Network (Adsense) grows in popularity due to it's strong ROI, Yahoo has confirmed they are scrapping their European contextual advertising at the end of March 2009 to focus on Search.

Never has the maths been so important as it is now to Search marketers. Paid Search is the most accountable medium in the ad-world and as such the recession has strengthened the reputation of search. The term "accountability" will be the new phrase for 2009. This crucial element of Search makes it the best option for marketers navigating their brand through a recession into brighter times.

The complete UK Search Engine Performance Report: Q4 2008 is available for download from the Efficient Frontier website at:
uk.efrontier.com/resources/research/getResearchQ408uk.html

David White
General Manager, Europe