- July 15, 2007
- 3 comments
Our agency’s PPC advertising share across Google, Yahoo, and Microsoft in June 2007 remained relatively stable in June from May.
Google continues to dominate, with three-fourths share. For the third month running, Microsoft took one point of share from Google, rising to 6%. Yahoo held steady at 21%. These are very small share changes and should be interpreted accordingly.
We note that our firm has been growing steadily year-to-date, so total client ad spend under management is up significantly in absolute dollars. These share numbers reflect the proportions of those dollars going to G, Y, and M.
As previously mentioned, 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.
Here are those data from the Big Three in tabular form.
| Month | 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% |
| 2007-06 | 73% | 21% | 6% |
These data represent our clients’ experience in aggregate. As always, your mileage may vary.
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Hey Alan,
This is some great info. I would also be very interested in seeing a trend analysis of this over, say the last several years. I have been pondering this ever since I spun a related story that came out on Friday which forecasts that Google is “poised to own 90% of the market based solely on R&D investments”:
http://sphinn.com/story/385
I firmly believe this is purely speculative unless we have some hard numbers (non R&D based) to justify it and thought a search-share trend analysis would provide somewhat of an adequate forecast if we went back far in enough.
My anecdotal thoughts are given the state of their current business model (advertising based, primarily through paid search), they would need to overtake their direct search engine competitors through competitive business practices/better tech AND/OR just flat out buy them.
However, their “competitive business practices” are raising a few privacy eye brows these days, to say the least, and Yahoo! attempted the latter (rollup strategy) a few years ago but it did not work (remember good ole market leaders like AltaVista, and Fast?). In addition, after all of the Microsoft anti-trust trials, I would find it very difficult to believe that Google would pass the antitrust litmus test required to Green Light such a deal.
All that said, I think the numbers would speak for themselves if we saw how different engines have risen and fallen over the years, and more importantly, where Google is forecasted to go.
My $.02,
-RL