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Google, Yahoo “Panama”, and Microsoft: Paid Search Market Share May 2007

The percentage breakdown of our agency’s total PPC advertising spend across Google, Yahoo, and Microsoft in May 2007 remained relatively stable from April. Google continues to dominate, with three-fourths share.

It is unwise to over-interpret small single-month changes. With that caveat, we note Google did lose one point of share each to Yahoo and Microsoft. This small downward blip marks the first month in the last four in which Google did not gain share. Such small changes could be statistical noise.

As mentioned in prior posts on this subject, nearly all of our clients instruct us to run their paid search campaigns to achieve their economic goals. That is, none of our clients establish a priori budget levels by engine. Our portfolio bidding platform optimizes ad budgets, buying the most effective clicks first. Thus, an increase in ad spend on one engine, relative to the others, reflects an increase in click quality relative to the others. Our client base consists of about 100 online and multichannel retailers, 85% B2C.

may 2007 ppc share google yahoo msft

Here are those data from the Big Three in tabular form.

Month Google Yahoo Microsoft
2007-01 73% 22% 5%
2007-02 70% 26% 5%
2007-03 72% 24% 4%
2007-04 76% 20% 4%
2007-05 74% 21% 5%

These data represent our clients’ experience in aggregate. Your mileage may vary.

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