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Efficient Frontier: Google Grabbed Extra Q4 Spending

When marketers opted to spend more, they chose Google

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In assessing a fixed set of clients, search marketing firm Efficient Frontier found virtually all of the additional spending headed to Google.

Observing those clients gave LeeAnn Prescott of Efficient Frontier opportunity to see where the spending headed in the all-important fourth quarter for major search engines Google, Yahoo, and Microsoft. In a day where many expect Yahoo to layoff hundreds of people, Yahoo also received a little bad news in Prescott’s report.

Efficient Frontier: Google Grabbed Extra Q4 Spending

While Google gained 97.45 percent of the additional spend on Q4 2007 search marketing, as compared to Q4 2006, and Microsoft’s MSN picked up 5.72 percent, Yahoo lost ground, losing 3.17 percent in contrast to the Q4 2006 period.

However, Prescott had some good news for Jerry Yang and company, too:

Our ROI analysis shows that Yahoo’s ROI improved by 39% in Q4 2007 versus pre-Panama Q4 2006, and MSN’s ROI was 27% higher than the average ROI across the search engines in Q4 2007. While Google didn’t make the largest gains in ROI, its ability to drive volume and consistent performance makes it the engine of choice for advertisers seeking to spend more on search advertising.

A general trend toward lower marketing spending may alter these behaviors. An eMarketer report said more than seven out of ten of their survey respondents planned to keep their budgets intact, or raise them 5 percent at most.

Efficient Frontier: Google Grabbed Extra Q4 Spending
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