Google Sucking up Your Profits

...while Yahoo lost $0.09! Guess who picked up that additional $.10? Why, it was GoogleVac! This according to Mountain View, California based Efficient Frontier.

Google accounted for 77.4 percent of total search engine spending in Q2 2008, an increase of 2 percentage points over the previous year. Yahoo! lost nearly 2 percentage points of search engine share in that period, accounting for 17.8 percent of total spend, and Microsoft Live Searchs share remained relatively stable at 4.8 percent of search engine spending.

On a brighter note for all three search companies, year over year (YOY) return on investment was improved. However, while CPC rates were improved for both Google and Microsoft Live Search, Yahoo took another significant hit.

Some additional highlights from the report include:

• Cost per click (CPC) rates increased by 13.8 percent for Google in Q2 2008 versus a year ago, while average CPCs on Microsoft Live Search increased at a slower rate of 5.6 percent, and Yahoo! CPCs declined by 7.3 percent.
• Return on Investment (ROI) improved on all three search engines, with Microsoft Live Search improving 25% YOY, while ROI on Yahoo! Search increased by 13%, and Googles ROI increased by 3%.
• In Q2 2008, for the first time Google captured a majority share of search engine spend in Japan, with 56% of search spending in that market.

According to James Beriker, President & CEO of Efficient Frontier,

This overall growth in the search channel, along with increased ROI across all the search engines, indicates a positive outlook for search advertising as marketing budgets become increasingly scrutinized.

Efficient Frontier analyzed 23 billion impressions and more than 390 million clicks to determine how shifts in the search engine marketplaces impacted overall spending and campaign effectiveness.

You can download a copy of the report at the Efficient Frontier website.

Del.icio.us

Digg

Reddit

Furl