Efficient Frontier Releases Q2 U.S. Search Engine Performance Report
2008-07-17 08:01:00
Google Gets $1.10 of Every New Dollar Spent on Search and 77
Percent of U.S. Search Spending
MOUNTAIN VIEW, Calif.–(EMWNews)–Efficient Frontier, the worldwide leader in providing Search Engine
Marketing technology and services to leading advertisers and agencies,
today released the U.S. Search Engine Performance Report: Q2 2008.
Data from a fixed set of large scale search engine advertisers showed
that Google gained more than its fair share of advertising dollars in
the second quarter of 2008: for every new dollar spent on search
advertising in Q2 2008 versus Q2 2007, Google received $1.10, while
Yahoo! lost $0.09 and Microsoft Live Search lost $0.01. 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 Search’s
share remained relatively stable at 4.8 percent of search engine
spending.
Other 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 Google’s ROI increased
by 3%.
-
Automotive advertisers increased search advertising spending by 24
percent in Q2 2008 versus Q2 2007, but retailers increased search
spending by a cautious 1 percent. Financial services advertisers, hit
hard by the mortgage crisis, decreased search engine spending by 7
percent YOY, and travel advertisers decreased spend by 17 percent as
consumers pulled back on leisure spending.
-
The global outlook for Google’s growth is
very positive, with the search giant capturing 75% or more of search
engine spending in Q2 2008 in the global markets in which Efficient
Frontier operates, with the exception of Japan and China. 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.
“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,” said
James Beriker, President and CEO of Efficient Frontier. “In a
potentially volatile economy, it becomes even more important for
advertisers to work with an SEM partner that has proven technology and a
services organization focused on maximizing ROI and driving growth in
the search channel.”
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. The Search
Engine Performance Report: Q2 2008 was completed based on data from
a fixed sample of Efficient Frontier’s U.S. clients from Q2 2007 through
Q2 2008, and includes data from large search engine advertisers across
multiple verticals as well as findings on search engine spend,
click-through rates, CPCs and ROI.
To download a copy of Efficient Frontier’s Search Engine Performance
Report: Q2 2008, please visit http://www.efrontier.com/efficient-frontier/resources/research/
getResearchQ208.html. (Due to its length, this URL may need to be
copied/pasted into your Internet browser’s address field. Remove the
extra space if one exists.)
About Efficient Frontier
Efficient Frontier is the market and technology leader in providing
Search Engine Marketing (SEM) solutions for leading global advertisers
and agencies. Founded in 2002, Efficient Frontier pioneered the
application of modern portfolio theory to SEM and today combines its
core algorithms and bidding technology with comprehensive strategic and
tactical services to manage more than $500MM in global search spend. The
largest and most sophisticated advertisers and agencies partner with
Efficient Frontier to achieve and sustain optimal return on investment
and ongoing campaign growth and efficiencies in highly competitive and
volatile search marketplaces. The company has 200 employees and is
headquartered in Mountain View, CA with offices in New York, the United
Kingdom, France, Germany, Hong Kong and India, and licensing
partnerships in Japan and Australia. Efficient Frontier is a privately
held company with funding from Redpoint Ventures and Cambrian Ventures.
For more information, please visit www.efrontier.com
and subscribe to the Efficient Frontier blog at http://blog.efrontier.com/.
Efficient Frontier 650-567-1068 |
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