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March 2007 PPC Spend Results For Google, Yahoo “Panama”, Microsoft


We’ve been watching Yahoo’s share of our client’s pay-per-click spend with additional attention since the release of Panama. Across our clients, at least, in 2007 Yahoo recovered much of the ground they lost to Google in 2006.

As mentioned in earlier posts on this subject, the overwhelming majority of our clients instruct us to run their paid search campaigns to achieve their economic goals. None of our clients mandate a priori budget levels by engine. Our portfolio bidding platform optimizes ad budgets, buying the best clicks first. Thus, an increase in spend on an engine reflects an increase in click quality, such as improved conversion or sales per click, relative to the other engines.

Anyway, here are aggregated ad spend results aggregated for March for the Big Three. Data from approximately 100 significant sites, mix is roughly 90% B2C and 10% B2B, nearly all retailers.

Month Google Yahoo MSN
2007-01 73% 22% 5%
2007-02 70% 26% 5%
2007-03 72% 24% 4%

While aggregate spend on all three engines was up in absolute dollar terms, Yahoo slipped back a tiny bit relative to Google in terms of percentage share. Most of Y’s big gain in share since Panama remains.

This chart represents our agency’s client’s experience; your mileage may vary.

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  • Alan Rimm-Kaufman
    Alan Rimm-Kaufman founded the Rimm-Kaufman Group...
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