US search spend during Q2 2011 rose 8% from Q2 2010, according to a Q2 2011 study by Efficient Frontier and Context Optional. Data from the Global Digital Marketing Performance Report indicates that in addition, search ROI rose 24%, suggesting search advertisers are shifting from a volume to an efficiency strategy.
Yahoo/Bing Slightly Increases Spend Share
While study data shows search leader Google has maintained a spend share hovering around 80% since Q2 2010 (peaking at 81.9% in Q4 2010), Bing/Yahoo (counted as one entity starting in Q1 2011) was able to increase its quarter-over-quarter spend share about 3%, building on a 15% increase the previous quarter.
Click share (CPC) remained stable on account of what Efficient Frontier says is marketers’ willingness to pay higher CPCs for the higher ROI found on Yahoo/Bing.
Yahoo/Bing Gains on Google RPC
Revenue Per Click (RPC) on Yahoo/Bing continued to increase in Q2 2011 compared to Google, rising 4% from 93.6% of Google’s share to 97.8%. While in Q4 2010 Yahoo/Bing actually exceeded Google’s RPC by almost 3%, compared to Q2 2010 when it stood at 76.4% of Google’s total, RPC has grown 28% comparatively. Efficient Frontier analysis indicates further improvements in traffic quality have driven this growth.
Yahoo/Bing ROI Remains Higher than Google
Although Yahoo/Bing lost 17% of its ROI advantage on Google between Q1 and Q2 2011 (dropping from 12% to 10%), its comparative worth has grown 25% from 88% in Q2 2010.
- Yahoo/Bing’s CPC increased between Q1 and Q2 2011, as did Google’s. Yahoo/Bing’s CPCs are up 5% YoY, Google is 1% down.
- Yahoo/Bing’s core impression growth dropped 3% YOY, Google’s rose 7%.
IgnitionOne: Google Dominates Q2 Search Spend
While 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 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.