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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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  • Curtis: Great study George! Along the same lines, I’m trying to find a study about which search engines have the highest conversion ratios....
  • registry cleaner: Thank you. I found your division of total time spent on priorities very useful!thanks again
  • George Michie: Ophir, thank you for your marvelous comment. I agree with you. Brand building is an important element of marketing, and a very...
  • Ophir: Hi George, Interesting post, very intereting. I find myself struggling with this issue day in day out and I mostly agreee with your...
  • Kevin Hillstrom: Oh, you are on to something! I can promise you that.
  • George Michie: I am eager to see what you’re thinking on the topic, Kevin. Some of our early early data scratchings suggest that we may be...
  • Kevin Hillstrom: This will teach me to not schedule posts … I have a half-dozen similar posts coming in the next week!!
  • TAMMY LANGWORTHY: I WISH TO CANCEL MY FUN FAMILY REWARDS AS I DON’T USE IT VERY MUCH. THANK YOU TAMMY LANGWORTHY
  • George Michie: Thanks Dave, it is a hot topic for good reason. I’ve had some interesting conversations with Kevin Hillstrom about his...
  • Mark Ballard: I certainly don’t mean to discourage advertising with Yahoo at all as there’s plenty of value to be had there. Healthy...
  • Nathan L.: I have thought about advertising on Yahoo! for some time, but news like this makes me want to just stick with Google. Good useful...
  • Dave 2.0: George, thanks for the callout on the survey. I’m VERY interested in the topic.
  • Nancy Maiewski: Another charge on my J.C.Penney statement for $9.95 for Family Fun Rewards! This isn’t the first time I have opened my bill...
  • George Michie: David, I’m sure Shop.org will make the results available to participants. We’re talking about presenting them at the...
  • David: It’s not clear from the survey whether participants get a free copy of the results. Do you know?

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