Paid Search Reports: Google Profits at Bing/Yahoo's Expense

Google gobbled up more paid search spending share last quarter, a result of the Bing/Yahoo integration, according to new reports from Efficient Frontier and SearchIgnite.

Google's share of paid search spend rose from 75.8 percent in Q2 to 77.9 percent in Q3, according to Efficient. SearchIgnite had Google growing to 80.2 percent of PPC ad spend.

Paid clicks were up 9 percent year-over-year (YoY); CPCs were up 14 percent YoY; and impressions were up 6 percent YoY, Efficient reported. Efficient said this demonstrates Google's continued ability to increase consumer and advertiser demand.

Efficient reported a lot of "noise" in the search share data due to the Yahoo-Bing integration, and that it was hard to isolate natural Bing gains from forced shifts of Yahoo traffic. However, they noted Bing picked up clicks and spend at a strong rate in part due to the Yahoo integration. Bing's click volume increased by 21 percent YoY and CPCs were up 27 percent.

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Efficient expects Google to see "relatively significant gains" in the fourth quarter due to seasonality and the Bing-Yahoo integration.

SearchIgnite also noted a couple positives for Bing advertisers. First, fears of inflated CPCs proved unfounded, and SearchIgnite expects only slight increases to CPCs. Also, SearchIgnite found that Bing's ad serving algorithm delivered more relevant advertising on Yahoo's SERPs, increasing click-through rates.

But, again, Google has about 80 percent of the market and Bing is nowhere near a serious contender. So keep that in mind.

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Overall, according to Efficient, search marketing YoY spend was up 19 percent with a 6 percent growth from Q2 to Q3. SearchIgnite noted 5.8 percent YoY paid search spending, with positive month-over-month momentum: July grew 4.9 percent; August 5.8 percent; and September 6.7 percent.

About the author

Danny Goodwin formerly was Associate Editor of Search Engine Watch, where he also covered the latest search marketing and industry news. He joined Incisive Media in October 2007, in charge of copy editing columns that appeared on both Search Engine Watch and ClickZ. Prior to a life in the search industry, he worked in the journalism field, working in numerous newsroom positions, before later working as a freelance copy editor.