77.4% of Search Ads to Google in Q2 2008

Efficient Frontier has released search advertising market data for the second quarter of 2008, and it showed Google growing 2% over Q2 2007. For every new dollar spent on search ads in 2008 over 2007, Google received $1.10, while Yahoo lost $0.09 and Microsoft lost $0.01.

As a result, Google enjoyed 77.4% of total search engine spending in Q2 2008, while Yahoo fell 2% to 17.8% and Microsoft came in at 4.8%. Google’s rise comes despite Adgooroo data suggesting their client base has actually declined.

Google accounted for 77.4 percent of total search engine spending in Q2 2008, an increase of 2 percentage points over the previous year.

Here’s more toasty data nuggets for your consumption:

  • Cost per click (CPC) rates increased by 13.8 percent for Google in Q2 2008 versus a year ago, while average CPCs on Microsoft Live Search increased at a slower rate of 5.6 percent, and Yahoo! CPCs declined by 7.3 percent.
  • Return on Investment (ROI) improved on all three search engines, with Microsoft Live Search improving 25% YOY, while ROI on Yahoo! Search increased by 13%, and Google’s ROI increased by 3%.
  • Automotive advertisers increased search advertising spending by 24 percent in Q2 2008 versus Q2 2007, but retailers increased search spending by a cautious 1 percent. Financial services advertisers, hit hard by the mortgage crisis, decreased search engine spending by 7 percent YOY, and travel advertisers decreased spend by 17 percent as consumers pulled back on leisure spending.
  • The global outlook for Google’s growth is very positive, with the search giant capturing 75% or more of search engine spending in Q2 2008 in the global markets in which Efficient Frontier operates, with the exception of Japan and China. In Q2 2008, for the first time Google captured a majority share of search engine spend in Japan, with 56% of search spending in that market.

Google releases Q2 revenues after the closing bell on Wall Street later today.

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