According to Reports, Google Widens its Supremacy in Search Advertising
Mountain View, California-based Google’s PPC rates grew by an average of 13.8 percent in the second quarter of 2008 compared to the last year quarter, while that rate shot up 5.6 percent for Microsoft Live Search, but fell down 7.3 percent in case of Yahoo, as per Efficient Frontier Inc., a search marketing company.
Good news for all three search engines is that their return on investment (ROI) saw an improvement, with Microsoft Live Search heading the way with a 25 percent rise in the second quarter of 2008 compared to the same quarter in the previous year. Yahoo Search ROI escalated by 13 percent and Google’s was up by mere 3 percent only, as per the ‘U.S. Search Engine Performance Report: Q2 2008’, which was out last week.
Conversely, it was disappointment for retailers as their search spending was essentially flat, with just 1 percent improvement in the quarter year-over-year, while automotive advertisers struck search ad spending by 24 percent. Reeling from the mortgage debacle, financial service advertisers slashed their search engine expenses by 7 percent in the second quarter this year, while travel advertisers cut expenses by 17 percent, the report stated.
The search marketing firm scrutinized 23 billion impressions and above 390 million clicks to identify how shifts in the search engine marketplaces created an impact on the overall expenditure and campaign effectiveness. The search engine report, which was based on data collected from a sample of the firm’s U.S. clients as of the second quarter of 2007 through the same quarter of 2008, also comprises of data from large search engine advertisers across multiple verticals.
The report confirmed that Google is expanding its lead in search advertising, stating that for every new dollar used on search advertising in Q2 2008 vs. Q2 2007, Google earned $1.10, whereas archrivals Microsoft Live Search and Yahoo Inc. lost 1 cent and 9 cents respectively.
Google generated 77.4 percent of total search engine spending in the second quarter this year, a growth of 2 percentage points over last year. While Yahoo had to do away with nearly 2 percentage points of search share in the quarter, which accounted for 17.8 percent of the entire spend, Microsoft Live Search sustained steadiness at 4.8 percent of total search engine spending, according to Efficient Frontier.
