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RKG helps retailers bring qualified traffic to their sites via large scale paid search campaigns. (We also help retailers improve site conversion via page redesign and multivariate testing, but this post is about PPC.)

For over a year, we’ve been reporting our aggregate agency spend going to each engine.

Expressing share in percentage terms removes seasonality and our agency’s growth from the statistic.

The bulk of our clients are online retailers, with a heavy emphasis on B2C.

Most of our client buy clicks from a direct response perspective — not so much interest in branding, and unlimited budget for clicks which meet their performance threshold.

Here are our March data:

paid search market share march 2008 google yahoo microsoft graph

[table]

While some clients establish strict monthly spend limits, they’re in the minority; more clients budget by performance.

So, our portfolio bid optimization algorithm and our search analysts usually don’t pay much attention to a priori budgets by engine.

We don’t usually care which engine gets how much ad spend. What we do care about is getting as many high-converting clicks for our clients that we can.

So what about last month?

March was another month where, in aggregate, Google took another tiny slice of the pie away from Yahoo.

This continues a slow but steady trend we’ve been watching for some time.

Link: earlier posts on same topic

Link: All Clicks Aren’t Created Equal: Q&A With Danny Sullivan over at SEL

Standard disclaimer: these data represent just our agency’s experience, and may not generalize beyond online retail. Your mileage may vary.

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Comments

  1. Chris Zaharias, April 4, 2008:

    It’s always good when SEMs put aggregate data out there; Comscore’s data is simply too risky to put blind faith in.

    Would I be right to assume this is a >$25M/qtr same size?

    Cheers,
    Chris

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  • 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...
  • Mark Matsusaki: I think I'm in agreement with the previous posting in that ROI is the metric used by many decision makers to measure the value of...
  • George Michie: Thanks for your comments Ophir, you raise excellent points. Particularly as Geo-targeting competition in different areas moves...
  • SEO Services: Nice Post. Thanks for sharing this information with us.

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