Efficient Frontier Search Engine Performance Report Finds Google on Top
The report also found that Google accounted for 77.4 percent of total search engine spending in the second quarter of 2008, which is an increase of 2 percentage points over the previous year.
On the other hand, Yahoo's portion of total search spending for the period fell by 2 percentage points, accounting for 17.8 percent of total spend. Microsoft Live Search's share remained relatively stable at 4.8 percent of total search engine spending.
Other highlights from the report include:
- Cost per click rates increased by 13.8 percent for Google in the second quarter of 2008 versus a year ago, while average CPCs on Microsoft Live Search increased at a slower rate of 5.6 percent. Yahoo CPCs declined by 7.3 percent.
- Return on investment improved on all three search engines, with Microsoft Live Search improving 25 percent year-over-year, while ROI on Yahoo Search increased 13 percent, and Google's ROI rose 3 percent.
- While automotive advertisers increased search advertising spending by 24 percent in the second quarter of 2008 versus the second quarter of 2007, retailers increased search spending by 1 percent.
- Financial services advertisers, hit hard by the mortgage crisis, decreased search engine spending by 7 percent year-over-year.
- Travel advertisers decreased their search spend by 17 percent as consumers pulled back on leisure spending.
The report was based on data from a fixed sample of Efficient Frontier's U.S. clients from the second quarter of 2007 through the second quarter of 2008. It includes data from large search engine advertisers across multiple verticals as well as findings on search engine spend, click-through rates, CPCs and ROI.