Google On Top In Search Monetization

    July 17, 2007

A new report from Searchlgnite and RBC Capital Markets says that Google has exceeded both Yahoo and Microsoft in revenue earned per search in the second quarter of 2007.

The report found that search engine market share has stabilized in 2007, as Google, Yahoo and Microsoft have not made significant gains.

Google still receives a larger percentage of media spend than its percentage of searches. In June 2007, Google received 76 percent of media spend while it received just 60 percent of searches across its network. Yahoo received 18.3 percent of media spend but had 34 percent of searches across its network in the same time period.

Google’s revenue per search continues to grow because of the constant tweaking of quality score algorithms and minimum bid requirements. Google made a change in June concerning landing page relevancy to reduce spam in its listings. The change is a positive for large brand marketers but is a negative to smaller advertisers.

"Interestingly, the SearchIgnite data confirms that Google’s late-May change to increase the weighting of landing page quality in the paid search ranking algorithm benefits large enterprise advertisers and makes it more difficult for affiliates and other smaller online advertisers," said Jordan Rohan, Managing Director and Internet analyst at RBC Capital Markets.

"Furthermore, Yahoo’s Panama-related market share gains now appear somewhat temporary."