Covario, the provider of interactive marketing analytics, said it still sees global search ad spending by high-tech and consumer electronics firms growing 14% to 18% in 2010. Paid search advertising among those companies rose 16.5% in the second quarter from the first quarter and jumped 35% from the same period a year ago, it said.
In the Americas, second-quarter paid search spending by tech companies increased 12% from the previous quarter. The figure for the Asia/Pacific region jumped 33% and EMEA spending also rose 25%, Covario said in its second-quarter Global Search Spending Analysis. The analysis is based on paid search spending from Covario's high-tech and consumer electronics customers and the data was compiled using Covario Paid Search Insight. "The combined paid search advertising spending of the brands represented totals more than $250 million annually," it said.
Google still holds the lion share with almost 75% of the global market for Covario's tech clients. The search giant registered a 16% spending increase from the previous three-month period although its overall performance was directly affected by its decision to redirect mainland China queries to Hong Kong due to censorship issues. The Mountain View-based company indeed saw its market share drop to 61% from 69% in the region - a loss that benefited local competitor Baidu who recorded a spending surge to 22% from just 12% in the first quarter. As Google now has stopped redirecting China searches and with the fresh renewal of its Internet Content Provider license in China, the company is poised to stop losing market shares, Covario said.
Google is due to hold its second-quarter earnings call tomorrow, July 15th, at 1.30 PM PST or 4.30 PM EST.
Yahoo & Bing
Yahoo's global market reached just about 15% in the second quarter, fueled by a 34% ad spend boost in the Americas and a 26% jump for Yahoo Japan. Bing, on the other hand, saw ad spend drop for the second consecutive quarter, as marketers cut their budgets by another 15% on the network. Covario sees the Search Alliance becoming effective at the end of the third quarter and expects "the combined Bing/Yahoo platform to account for 17% of the global paid search market, and 21% of the U.S. market share," said Craig Macdonald, Covario's CMO and senior vice president of product management. "With this strong second quarter performance and the anticipation of more growth to come for the rest of the year, we are standing by our original forecast that spending for paid search in 2010 will increase by 14 to 18 percent over last year," Macdonald added.