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Small Business Search Advertising Spend Growth Slows in Q3; Bing Share Rises [Report]

Danny Goodwin
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Small businesses on average spent $2,327 on paid search advertising in Q3 2010, an increase of 43 percent over Q3 2009, according to Webvisible. This is a slower year-over-year (YoY) growth rate compared to previous quarters. YoY spending grew by 159 percent in Q2 2010, 91 percent in Q1 2010, and 111 percent in Q4 2009.

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Webvisible's State of Small Business Online Advertising Q3 2010 report is based on data from more than 12,000 U.S. small business advertisers and $55 million in advertising. Rising categories included automotive, roofing, and air conditioning.

Use of video more than doubled, as nearly 30 percent of all advertisers included video on their landing pages in Q3 2010. Watching video was the second most popular conversion action after clicking through to the advertiser's website.

Spending on Bing increased by 37 percent in Q3, up 3.7 percentage points from Q2. As a result of its search alliance with Yahoo, Bing is expected to capture more than 40 percent of small business advertising spending through Webvisible in Q4 2010.

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From Q2 to Q3 2010, Yahoo lost 1.3 percentage points, dropping to 28.3 percent of spending, while Google lost 5.8 percentage points in share, falling to 52.4 percent.


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