search advertising
Google Holds, Yahoo Gains Search Ad Share in Q4 2008, According to Efficient Frontier
Efficient Frontier has released a search engine advertising report for the fourth quarter of 2008. They found that Google held onto its 76% market share while Yahoo gained 3%.
Here are additional trends they found:
- Large vs. Small Advertisers: Small advertisers in the U.S. accounted for a greater decrease in search advertising spend than larger, more established brands. Advertisers spending less than $50,000 per month cut spending by 23 percent year-over-year, with many of the cuts coming between Q3 and Q4 of 2008. Companies that spent more than $200,000 per month only reduced spending by 9 percent over the same time period. These margins are typical during a recession when larger, more sophisticated brands aggressively utilize the search channel to drive revenue and sales while strengthening their position.
- Overall Impression Trends: Overall impressions for search engines are down 6 percent year-over-year. From Q4 2007 to Q4 2008, Google experienced a 3 percent decrease, while Yahoo lost 13 percent impression volume. Microsoft Live garnered 21 percent more impressions in Q4 than in Q3 2008 and gained 18 percent more impressions year-over-year.
- Click-Through Rate Trends: Overall click-through-rates (CTRs) in search were relatively flat year-over-year, gaining only 2 percent. While Microsoft Live Search had higher CTRs than all other search engines from Q1 to Q3 of 2008, it dipped below Google Search in Q4 2008. Google Search CTRs decreased by 2 percent year-over-year, while Yahoo CTRs improved 3 percent year-over-year. Google Content CTRs increased 150 percent year-over-year.
- Cost-Per-Click Highlights: Overall search cost-per-click (CPC) is down 5 percent year-over-year. In the last quarter of 2008, Google Search’s CPC declined by 8 percent, while Microsoft Live Search declined by 3 percent and Yahoo Search declined by 1 percent. Microsoft Live Search has consistently maintained a higher CPC than all other search engines, indicating that advertisers are willing to pay a premium for a high quality, albeit smaller audience.
Here are some niche-related findings:
- Automotive: 15 percent decline in spending over 2007, due primarily to lower impression volume, reflecting weakness in consumer demand.
- Finance: 25 percent decline in spend over 2007, with impressions up by 5 percent reflecting high customer demand for financial services, with but fewer qualified conversions.
- Retail: 9 percent increase in spend over 2007, reflecting the strength of the channel in price comparison and shopping efficiency, particularly for more established online brands that increased spend to reach revenue goals.
- Travel and Entertainment: 24 percent decrease in spend year-over year, primarily due to reduced traffic volume, which is down in by 18 percent in the sector year-over-year.
“Search engine marketing remains the most accountable sales and client acquisition channel on or offline,” said James Beriker, President and CEO of Efficient Frontier. “To continue to achieve stellar results, the current recession has made it even more critical for search marketers to know their metrics and manage campaigns based on actionable market, sales funnel and conversion data. The reason we work with more than 150 of the most sophisticated search marketers in 20 markets worldwide, and manage more spend than any other firm, is that we use math to automate the process of accurately modeling data and making the right overall strategy and keyword bidding decisions to deliver optimal performance, no matter the market dynamics.”
Related Reading:
Online Display Ad Pricing Drops in Q4 2008
AdGooroo Releases Q4 2008 Search Advertising Data
Paid Search Spend up 12% in Q4 2008
Google to Announce Q4 2008 Results on January 22, 2009 (Same Day as Microsoft)
Google has announced that its earnings call for the fourth quarter of 2008 will occur on Thursday, January 22, 2009 at 1:30pm PST (4:30pm for East Coasters). The call can be accessed live at http://investor.google.com/webcast.html.
Guess who else is holding their earnings call that day? Microsoft. Their call will begin one hour later and can be accessed at http://www.microsoft.com/msft.
We’ve already seen indications that the fourth quarter was a rollercoaster for search advertising. This is likely to have much more of an effect on Google than Microsoft, who will benefit from strong Xbox 360 sales during the holidays and be affected by the larger software and enterprise offerings of their overall business.
It’s “Horses for Courses” at SES London 2009
A year ago, I wrote an article for Search Engine Watch entitled, “It’s ‘Horses for Courses’ at SES London.” In the article, I said business professionals may want to bring a team to Search Engine Strategies London – because there will be three concurrent conference tracks and no business professional will be able to attend all of the sessions.
Well, it’s a year later and I’d make the same case – even in a recession. In fact, if you need to grow your business online now more than ever, then the smart move will be to bring a team of three people to SES London 2009.
To some extent, this is a case of “In for a penny, in for a pound.” If something is worth doing, then you might as well go the whole nine yards.
But it also turns out that it has economic benefits. If you read the rates and registration details closely, you’ll see that there are Special Group Discounts. (First two conference registrants pay full price, the third person from the same organization, registering at the same time qualifies for 50% off their registration fee.)
And sending a team of three people will enable you to take advantage of the fact that the SEM conference includes advanced sessions, intermediate sessions, and beginner sessions. And this will enable your organization to put different “horses” on different “courses.”
For example, someone entering the SEM steeplechase for the first time will race through the the Fundamentals Track on Wednesday, Feb. 18, as well as the Beyond Fundamentals Track on Thursday, Feb. 19.
Meanwhile, someone who’s been around the SEO racecourse a few times will gallop through the Organic Track on Tuesday, and the Issues and Tactics Track on Thursday.
To extend the metaphor, someone who already knows how to harness PPC will be trotting through the Advertising Track on Wednesday, as well as the Improve Me Track on Thursday.
How can I be so sure? Well, I’ve been speaking at Search Engine Strategies London each and every year since 2005. And when I wasn’t speaking, I was sitting in on sessions to report on the conference for Search Engine Watch.
If you’ve never been to SES London before and want to get an idea of what you’ll see and hear, you can take a look at the descriptions below of half a dozen out of more than 40 sessions — as well as some video interviews with six the more than 60 conference speakers.
Let’s start with a couple of the advanced sessions first.
Search Advertising Tools: In order to get a leg up on the competition, successful Search Engine Marketers need to be armed with the latest tools of the trade. This session will explore a range of popular search engine advertising tools along with some important features you should be aware of. One of the speakers on the panel of experts will be Thomas Bindl, Founder & CEO, Refined Labs GmbH.
Byron Gordon of SEO-PR interviewed Thomas about the evolution of search ad tools during SES Chicago 2008. Thomas mentioned the best paid and free search ad tools on the net and provided a preview of SES London 2009.
Thomas Bindl, Refined Labs, on search ad tools and SES London 2009
Ads in a Quality Score World: More and more, ranking well in paid search listings is less about how much you pay and more about the “quality” of your ad campaign. But what goes into making up your quality score? One of the speakers on this panel will be Andrew Goodman, Principal, Page Zero Media.
As SES Chicago 2008, I interviewed Andrew about the updates he made to his book, “Winning Results with Google Adwords.” His book take a closer look at quality factors and gives tips on increasing the perceived relevancy of your campaign.
Andrew Goodman, Page Zero Media, on Google Adwords at SES Chicago 2008
Next, let’s take a look at a couple of the intermediate sessions:
Search Resources: Building a Better Economic Model: In today’s uncertain economic times, businesses need certainty around their marketing and sales initiatives. Measurable, quantifiable strategies which have a defined ROI will win, as managers will only invest in activities they can measure. One of the speakers on this panel will be Bryan Eisenberg, Co-Founder, Future Now, Inc.
Mitch Joel of Twist Image and Six Pixels of Separation interviewed Bryan at SES Toronto 2008. Bryan was the talked about his keynote presentation as well as his new book, “Always Be Testing: The Complete Guide to Google Website Optimizer.”
Bryan Eisenberg on Site Metrics and Optimization
SEO Through Blogs & Feeds: Not yet running a blog? Not syndicating your content through web feeds? Then you’re missing out on an important area that can help your overall SEO efforts. One of the speakers on this panel is Jennifer Evans Laycock, Editor-in-Chief, Search Engine Guide.
At SES San Jose, 2008, Andrew Goodman interviewed Jennifer about the best tips on viral campaigns and social media marketing, especially for small business who want to make the most of their business online without spending too much money.
Small Business Viral Marketing Tips, SES San Jose 2008
Finally, let’s take a look at a couple of the beginner sessions:
Search Engine Friendly Design: How can you build a website from the ground up that pleases both crawler-based search engines and your visitors? Discover how “search engine-friendly” design can tap into free traffic from search engines. One of the speakers at this session is Matt Bailey, President, SiteLogic.
As SES Chicago, Chris Boggs of Rosetta interviewed Matt about difference between Analytics 1.0 and Analytics 2.0. Matt said Analytics 1.0 is the endless reporting of numbers with no analysis of the data, while Analytics 2.0 digs into the “why and how” to better understand what the data means.
Matthew Bailey, SiteLogic on 1.0 and 2.0 Analytics at SES Chicago
Search Advertising 101: Paid placement is a form of search advertising that provides a top ranking in return for payment. Every major search engine offers a paid placement program. The moderator of this session, which is especially geared toward beginners, will be Andy Atkins-Krüger, Managing Director, WebCertain Europe Ltd.
Byron Gordon interviewed Andyat SES Chicago 2008 about that show as well as his expectations for SES London 2009. Andy also talked about the state of search in Europe for 2009.
Andy Atkins-Kruger, WebCertain, discusses SES Chicago and SES London 2009
In other words, there are courses for horses at SES London 2009. That’s what makes it the definitive event for UK and European marketers, corporate decision makers, webmasters and search engine marketing (SEM) specialists, including pay per click (PPC) advertisers and search engine optimization (SEO) consultants.
Yahoo Gives Itself Permission to Change Your Search Marketing Campaigns
If you conduct search advertising through Yahoo, you just got a brand spanking new addition to your search marketing team: Yahoo.
Through an update to their terms and conditions, Yahoo gives itself permission to hijack your search marketing campaigns. Check out the new language:
Sponsored Search
3. OPTIMIZATION. In the U.S. only, for those advertisers not bound by an
Insertion Order, we may help you optimize your account(s).
Accordingly, you expressly agree that we may also: (i) create ads,
(ii) add and/or remove keywords, and/or (iii) optimize your
account(s). We will notify you via email of such changes made to your
account(s), and can also include a spreadsheet of such changes upon
your written request. If you would like any of such changes reversed,
please reply to such email within 14 days of the change(s), and we
will make commercially reasonable efforts to reverse the change(s) you
specifically identify. Notwithstanding the foregoing, you remain
responsible for all changes made to your account(s), including all
click charges incurred prior to any reversions being made. It is your
responsibility to monitor your account(s) and to ensure that your
account settings are consistent with your business objectives.
Actually, Yahoo began invading its customers’ personal space about a month ago. Al Scillitani was alarmed when he got an email from Yahoo saying they had made changes to his account – after the fact.
Now, it’s just official.
This is kind of like a fast food restaurant going into your burger after you’ve take a bite and removing or adding pickles, ketchup and cheese. Or your cable company going into your DVR and choosing which programs to record.
Have you received the new Terms and Conditions? Has Yahoo made changes to your account? Let us know in the comments!
Related Reading:
Yahoo Snags Search Ad Marketshare Gain at Google’s Expense
Yahoo’s Conversion Tips: Optimize, Navigate and Track
Yahoo Releases Three Updates to Traffic Quality Center
Google, Lessig Defend Net Neutrality Positions (Mis) Stated in Wall Street Journal
The Wall Street Journal has caused quite a stir by publishing a story saying that leading proponents of net neutrality have been softening on their positions. Few blogs fell for the embellishment and Google and Lawrence Lessig have defended their not-so-shifty positions.
Google’s Richard Whitt, Washington Telecom and Media Counsel, took to the company’s public policy blog to clarify:
Despite the hyperbolic tone and confused claims in Monday’s Journal story, I want to be perfectly clear about one thing: Google remains strongly committed to the principle of net neutrality, and we will continue to work with policymakers in the years ahead to keep the Internet free and open.
Lessig, a professor of internet law at Stanford and keynote speaker at last week’s SES Chicago, explained how the Journal got his position correct, but the idea that his position new is wrong:
I distinguish between “zero price regulations” (such as Markey’s bill (which I say I am against)) and what I called “zero discriminatory surcharge rules” (which I say I am for). The zero discriminatory surcharge rules are just that — rules against discriminatory surcharges — charging Google something different from what a network charges iFilm. The regulation I call for is a “MFN” requirement — that everyone has the right to the rates of the most favored nation.
This is precisely the position that the Journal breathlessly attributes to me today. It represents no change — no “softening” no “shift” in my views.
When it comes to net neutrality, no matter what side of the issue you tend to take, one thing is for sure: journalists and PR people who misunderstand how the internet works are only adding to the confusion.
Google also seems to be learning little from its recent failure in Washington, which cost them a search advertising deal with Yahoo!. Unless they learn to be proactive instead of reactive, they’re going to consistently lose to more experienced players. Then again, being against regulation for search advertising and for regulation regarding net neutrality is a delicate stance to balance.
AdGooroo Report Shows Times Not So Tough for Search
The economic downturn may not be affecting search advertising, according to the latest Mid-Quarter Search Engine Update from AdGooroo. The report shows that first-page advertising activity on all three search engines was up sharply during the first two months of Q4. Google active advertiser counts were up about 54.9%, Yahoo up 11.2%, and Microsoft up 29.6%
Some of the uptick is due to increased spending on holiday campaigns across the engines. Some of Google’s large increase in advertiser counts is due to the increase in ads per page that Google implemented this quarter.
In addition, AdGooroo reports that We estimate that Microsoft has increased its advertiser share from 11.5% in Q3 to about 15.8% in Q4, a 37% increase. That brings Microsoft much closer to second-place Yahoo, which stands at 22.1%, with Google squarely in the lead at 80.3%.
The full 4-page report is available for download.
Half of British and Irish Marketers Use SEO for PR Purposes
According to new research by Citigate Dewe Rogerson, 51.4% of marketers in the UK and Ireland use search engine optimization (SEO) tactics for public relations (PR) purposes. Brilliant!
And almost two-thirds of respondents suggesting that internet-based PR was important. Brilliant!
However, just over four in 10 marketers in the UK and Ireland said that they did not have the in-house digital skills to develop a sound online PR strategy, while 31.2% indicated that their organizations did not fully understand the business benefits of internet PR.
Well, to remedy that situation, all marketers need to do is attend Search Engine Strategies London, February 17-19, 2009. On the agenda are sessions like:
Universal & Blended Search — Search result multiplicity is not a new phenomenon, but recent advancements guarantee that the world of search and marketing will be changing forever. Before you attend this week’s optimization and best practices sessions, learn from industry gurus how the steps that follow the search are developing. Our ongoing series on universal search will include research data available only at SES.
Online Video Update: The Next Wave — This session will provide tips on how to navigate the new wave of online video, as more people are watching, sharing, and finding videos online. It will cover the four contributing factors to the massive surge in popularity and predicted continued growth for online video, as well as the converging factors that have led to the next wave of online video search. The panelists will also discuss the issues with video search, and the industry’s desire for standards on how to tag, organize, and find videos.
SEO Through Blogs & Feeds — Not yet running a blog? Not syndicating your content through web feeds? Then you’re missing out on an important area that can help your overall SEO efforts. Learn more about the unique advantages blogs and feeds offer to search engine optimization.
News Search SEO — News search engines offer a great way to receive targeted traffic related to breaking topics or to help with a public relations launch. In this session, we look at how to make use of press releases and news content to tap into the power of news search.
Video & Podcast SEO — New products make it easier to locate video content from across the web or to find “podcast” programs, on-demand radio-like shows people can listen to on MP3 players or their computers. This session will provide a look at various services and how to get your content visible and audible within them.
Brand & Reputation Management — Can you use a competitor’s trademark in your own search advertising? Or what if a competitor has an ad running on your trademarked brand name? Should you engage professional legal help or are there other options? What if bloggers are posting negative or false claims about your brands and these are spreading with viral speed through other blogs? Are there ways to get these damaging messages out of the search engines? This session will provide an exploration of these and other brand protection issues.
Beyond Linkbait: Getting Authoritative Mentions Online — Link building is crucial, but linkbait tactics that worked this year may not be as effective next year. This session focuses on the underlying quality as well as ingenuity needed to get other websites to link to you early and often. It will also explain how you should approach journalists, bloggers and other authoritative sources to enhance your company’s online reputation, whether or not you get links.
And on Friday, February 20, 2008, there are half-day workshops, including:
Reaching Your Audience Through Blogs, taught by Jennifer Laycock of Search Engine Guide.
Link and Reputation Workshop, taught by Dixon Jones of Receptional.
In other words, marketers can develop the in-house digital skills to develop a sound online PR strategy. And, if their organizations don’t fully understand the business benefits of internet PR now, they will by the end of SES London 2009.
At SES London 2008, I interviewed Lee Odden, CEO of TopRank Online Marketing, about some of the public relations oriented sessions at that conference.
Lee Odden, TopRank Online Marketing, at SES London 2008
And if you register for one of the SES conference packages before Dec. 22, 2008, you can save up to £300 with the Early Bird Rate. Brilliant!
SEMPO’s Annual State of the Market Survey Open Now Open for 2008
It’s that time of year. SEMPO (Search Engine Marketing Professional Organization) has opened their State of the Market survey to gain (and later give) insight into what SEOs and SEMs are doing with their marketing budgets and strategies.
There are perks for participating, including an 8GB iPod Touch and a free pass to a North Americaan SES Conference to randomy drawn participants. You do not have to be a SEMPO member to participate.
This year, your participation may be more crucial than ever. An uncertain economy has many people guessing, but surveys such as these can help provide tangible realities into what’s really going on in search advertising.
“While there are numerous surveys publishing online spend projections, what differentiates the SEMPO survey is its ability to tap into the largest qualified pool of professionals actively engaged in search marketing,” says Kevin Lee, co-founder and executive chairman of Didit, and a founding board member of SEMPO who continues to coordinate this annual research project.
Related Reading:
adCenter Offers $1000 in Free Clicks for SEMPO Members
SEMPO Institute to Develop Career Opportunities for Young Chicagoans
New SEMPO Chairperson Dana Todd Has Big Dreams for Organization
Happy Thanksgiving, from All of Us at Search Engine Watch
We will not be publishing on Thursday, November 27, or Friday, November 28, in observation of Thanksgiving Day. I hope those of you that are celebrating the holiday can stay off the Internet and spend some time with those you love.
For those of you that aren’t celebrating Thanksgiving, or have had enough quality time with your family, here are a few things you might find interesting:
* If you haven’t checked it out lately, I suggest looking over the articles in our Search 101 section. It’s been updated with articles covering the basics of search engine optimization, search advertising, and several other topics. Keep an eye on that section, as it will continue to be updated on a regular basis.
* We’ve been collecting quite the archive of Search Engine Marketing Webcasts. We’ve got one-hour presentations with Q&A available on demand on topics from Holiday PPC campaigns to search trends, to Profitable PPC fundamentals. You can also sign up for upcoming webcasts, including one next week on Advanced Keyword Research.
* Catch up with other Thanksgiving refugees on the Search Engine Watch Forums, or browse the archives to find the best advice on a range of search marketing topics.
* Head on over to Facebook to join the SearchEngineWatch Facebook Group or the Search Engine Strategies Facebook Group. Or check out our LinkedIn Groups for Search Engine Watch, SearchEngineWatch.com Forums, or Search Engine Strategies Conference & Expo.
We’ll be back on Monday with plenty of new Experts columns, blog posts, and more. Have a happy Thanksgiving!
JP Morgan Lowers Search Ad Growth Estimates
JP Morgan Internet analyst Imran Khan is lowering projections for search ad spend for 2008 and 2009. The forecast for 2008 growth is now 23.4% year-over-year, down from earlier projections at 27.4%. The forecast for 2008 is a dismal 17.3%, down from 25.5%.
Khan sees specific sectors as being hit harder than others, particulary travel, telecom, autos, and retail. Still, Khan expects search advertising to hold up better than display advertising.
What do you think of Khan’s revised projections?
Related Reading:
Online Advertising Networks Struggle As Industry Growth Slows
60% of Marketing Budgets Remain Unchanged by Economy
![[image]http://kelsocartography.com/blog/](http://www.stumbleupon.com/to/2BKQpi/kelsocartography.com/blog/wp-content/uploads/2009/09/the-world-according-to-ronald-reagan.jpg/t:4b226fbe0a9e5;src:favorites){kind=link}
![[image]http://fc02.deviantart.net/fs44/i](http://www.stumbleupon.com/to/1pq3kF/fc02.deviantart.net/fs44/i/2009/146/c/5/Beautiful_Day_by_Dr4kon.jpg/t:4b226fbe0a9e5;src:favorites){kind=link}
Comments