Thursday, 31 January 2008

Google gains search advertising share

AdWeek reports on new research published by Efficient Frontier, a US search-marketing technology provider, who have tracked more than 17 billion impressions and 270 million clicks on paid search ads during the last quarter of 2007 compared to the same period in 2006.

The results show that Google has increased its share of online search spend as it continues to attract a growing majority of Internet searches - up to 77% from 71% a year earlier. In contrast, Yahoo!'s share dropped from 24% to 17% and Microsoft gained just 1% year-on-year, up to 6%, which indicates that the gap between Google and its rivals continues to grow. The research also showed that total search ad spending increased by 29% for the period with almost 97% of it going to Google.

These figures show that Google is receiving a higher average cost per click for its paid search advertising and although Yahoo!'s new 'Panama' ad system may be closing the monetization gap, there is still some way to go due to Google's dominance of search traffic, which is even more pronounced outside of the US. Microsoft is apparently showing a higher conversion rate on clicks than Google but they still cover a small share of the market which is not that attractive to many advertisers.


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