Yahoo Snags Search Ad Marketshare Gain at Google’s Expense

Analytics firm Covario says Yahoo gained paid search advertising at the expense of Google in the second quarter of 2008.

Covario also said that paid search has gone through a “compression” period, where growth has declined from 52% to 43%.

“Our client roster inspired us to launch this analysis series due to our customers’ unique positions in the advertising ecosystem – they are US-based, but also global in the scope regarding their paid search advertising programs, so they tend not to be retailers or ecommerce vendors who focus on one geographic region,” said Craig Macdonald, vice president of marketing and product management at Covario. “It is very exciting for us to be able to observe first-hand such trends as the bucking of the biggest losing streak in the paid search market – the loss of market share by Yahoo to Google.”

Of course, Google has seen a decline in clicks and search ads they attribute to increasing quality of their ads. That reasoning worked for Q1 results, which blew away Wall Street expectations, based largely on analytical data. Q2 disappointed the street, but so did Microsoft and Yahoo.

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