Google Dominates Yahoo/Bing in Ad Spend

June 29, 2011

ignition-adspend-engine-q2-2011-june-2011.JPGWhile dramatic increase in the usage of Bing has driven significant growth in the combined traffic to the Yahoo and Bing search engines in the past year (Yahoo search results are powered by Bing), Google still dominated both engines in ad spend during Q2 2011, according to [pdf] data from IgnitionOne. Results of the Q2 2011 US Online Advertising Report show Google commanded 81% of all US search advertising spend in Q2 2011.

This figure is actually up slightly from the previous quarter and a 17.7% increase from Q2 2010. Meanwhile, Yahoo/Bing spending dropped 7.7% from Q2 2010.

Yahoo/Bing Loses Ground in Other Key Metrics

ignition-yoy-stats-engine-q2-11-june-2011.JPGThe combined Yahoo/Bing also saw YOY declines in other key metrics, with cost-per-click (CPC) down 11% and effective CPM (eCPM, or effective cost per thousand views) down 9% year-over-year. Yahoo/Bing clicks (3.6%) and impressions (1.4%) grew slightly year-over-year. However, Google’s rate of growth in these two metrics was approximately nine times greater for impressions (12.8%) and five times greater for clicks (17.6%).

Q2 Search Spend Shows Modest Growth

ignition-yoy-searchspendgrowth-q2-11-june-2011.JPGUS paid search spend grew 12% YOY in Q2 2011 and dropped 14% from 14% growth in Q1 2011. IgnitionOne analysis indicates spending decelerated thoughout the quarter, with June showing nearly flat growth on a YOY basis. While this declining growth did not have a significant impact on the quarter overall, IgnitionOne cautions it could be an indicator for Q3 performance.

Google AdEx Has Strong Same-Client YOY Spend Growth

ignition-rtb-june-2011.JPGIn terms of real-time bidding (RTB) display spend trends, Google’s AdEx saw nearly 230% growth in spend year-over-year on a same client basis, despite a 20.5% decline in CPM. Yahoo’s Right Media Exchange did not fare as well, with impressions, spend and CPM all down across the board.

Share of RTB display spend is now almost evenly split between the two dominate players, with Google at 51% share and Yahoo! at 49% share.

Compete: Bing Steals Google Search Share

Year-over-year trends in the US online search market during May 2011 make it clear that in the past year, Bing has been rapidly growing at the expense of perennial search leader Google, according to data from Compete. Microsoft, primarily representing Bing, increased its US search market share about 75%, from 9.7% in May 2010 to 17% in May 2011. Meanwhile, Google lost 14% of its search market share in the same timeframe, dropping from 73.9% to 63.6%.

About the Data: This report reflects same client spend within channel aggregated values through June 15, 2011. For Q1 to Q2 2011 comparisons, a seasonal adjustment was applied to reflect the anticipated performance during the final 15 days of the quarter.

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