It is no surprise that Google is the dominate search ad business on the Internet. In the latest statistics from Efficient Frontier Google showed a 2% growth over last year and a huge 77.4% market share. Also stated in the article were these facts.
Google makes $1.10 for every $1.00 spent, which Yahoo posted a 9 cent loss and Microsoft posts a 1 cent loss. Which in itself is interesting. It makes one wonder. If Microsoft does buy Yahoo, it would seem logical that together they would post a 10 cent loss. But that’s another story.
In the article it stated:
Here’s more toasty data nuggets for your consumption:
- 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.
So there you have it. Google remains king of the hill while Yahoo and Microsoft barely make a blip on the radar.