Thursday, July 24, 2008

Paid Search Market Share

Continued the last article about search engine reflected on paid result Dave Davies goes on, what could be more important to the engines than their percentage of the paid search arena. Does Google really care about being the dominant search engine as far as organic search goes? Let me put this a different way, if Google was standing in front of their shareholders would they prefer to announce that they held 80% of all worldwide searches and reported revenues of $7.8 billion dollars for the quarter OR would they rather stand up and say they hold 20% of all worldwide searches and reported revenues of $8.7 billion dollars? Organic results drive traffic which in turn results in clicks on paid ads. From a business standpoint that's the only reason that organic search even matters.

So which engine has the healthiest paid search environment? According to AdGooroo, Q2 results show a different world than one might guess (which is why I noted that it is interesting).

Over the past twelve months advertiser growth (or lack thereof) breaks down as follows:

Google: -8.5%
Yahoo!: +9.8%
MSN: -6.7%

Advertiser counts have also changed (i.e. the number of advertisers on the engine). Yahoo! leads in this area as well with a growth of 0.03%. Google dropped by 6.4% and MSN dropped by almost 20% (good thing they have their OS revenue to fall back on).

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