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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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  • Nick Stamoulis: Great tips during this crazy time. People are most likely going to pull much of their PPC advertising as a whole these days but the...
  • Namu: Thank you for the great tip. Now I can read my starred items on my iPod touch offline!
  • Ricardo Figueiredo: Thank you for the good advice Alan. It's intriguing to observe how there are some businesses, and individuals, feeling the...
  • George Michie: Chris, I wouldn't be surprised if that's a real number. Inc says they have 550 employees, so their income would have to be $50...
  • George Michie: Hi Christian, I suppose they take the same percentage hit off their commission that the retailer does. To my thinking it's the...
  • Chris Zaharias: I read the magazine on a flight Sunday and recall seeing iCrossing on there at ~~$100M in revenues, and thought the same thing of...
  • Alan Rimm-Kaufman: Christian -- I didn't mean to imply all retailers will face Q4 losses. But it is not improbable that many retailers will be...
  • Christian Little: Despite the economic crisis, how could most retailers be facing a Q4 loss? For most retail this is the best time of the year, you...
  • Christian Little: That's pretty remarkable...makes me want to build a coupon site lol. Don't coupon sites take a huge hit in commissions though...
  • Stephen Schramke: Sage advice. Thanks for sharing!
  • George Michie: Could be Neil. I have my doubts. My suspicion is that there just isn't much work being done, other than taking commission checks to...
  • Neilzb: Those numbers are pretty remarkable, but if I had to guess I would say that it’s possible that they are just 8 people 'outsourcing' full...
  • Jeff Cornejo: I disagree that a revenue/employee ratio shows ANY kind of profitability. If anything, a mostly-passthrough model, with high...
  • George Michie: Hi Dan, The IP address of the advertiser isn't a factor, anyone can run geo-targeted ads regardless of where their website resides....
  • dan shipe: Hey, me again. What about possible exploits to this system? Adwords must evaluate the geographic region based on the IP address of the...

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