Google Still Ruling Search Advertising

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Google Still Ruling Search Advertising

By: Mike Sachoff
2008-10-17

Google continues to gain ground, for every new dollar spent on search advertising in the third quarter of 2008 compared to the third quarter of 2007, Google received $1.14, while Yahoo and Microsoft each lost $0.07, according to Efficient Frontier's U.S. Search Engine Performance Report: Q3 2008.

Under the terms of the Google-Yahoo Google continues to dominate the overall share of spending at 76 percent, although the company's search advertising growth dipped slightly by 1.9 percentage points from Q2 to Q3 2008.

Yahoo search gained 1.8 points in the same quarter to bring it to 19.2 percent of total spent while Microsoft Live Search held fairly steady at 4.8 percent share.

Out of Google's 76 percent share, 4.6 percent was from Google content, an increase of 82.8 percent for non-financial services advertisers. Google content was the only search engine channel for which all advertisers increased spending in Q3 2008.

"Our data shows that search engine marketing continues to be a highly productive direct marketing channel for advertisers, even in challenging markets," said James Beriker, President and CEO of Efficient Frontier.

"With increased competition and a decrease in the total number of conversions, advertisers will either slash budgets or use advanced technologies to maximize volume and ROI. We're proud to partner with the most sophisticated search advertisers in the world to continue to drive their ongoing success in these tough markets."

ROI improved YOY on all three engines for advertisers outside of financial services.

Spending on Google by non-financial services advertisers grew by 3.6 percent on YOY basis, faster than the overall growth rate of 2.5 percent.

On a global basis, Google dominated the search market place in Q3 2008, grabbing more than 85 percent of search spending share in the UK, Europe, and Australia. In Japan, Google accounted for 55 percent of search spending.

Google announced its third quarter results yesterday and you can read about them here and here.

About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.


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