Efficient Frontier’s Startling Data about Online Advertising
July 21, 2008
M2, the UK news outfit, reported on a news story that appeared in Telecomworldwire. I tried to get the nested links to work and ran into latency issues. You will want to read the M2 story here. The key point in the item in my opinion was this statement:
According to the report, for every new dollar (USD) spent on search advertising in Q2 2008 versus Q2 2007, Google received USD1.10, while Yahoo! lost USD0.09 and Microsoft Live Search lost USD0.01. Google accounted for 77.4% of total search engine spending in Q2 2008, an increase of 2 percentage points over the previous year. Yahoo! lost nearly 2 percentage points of search engine share in that period, accounting for 17.8% of total spend, while Microsoft Live Search’s share remained relatively stable at 4.8% of search engine spending.
I had seen some of these data elsewhere. But this paragraph underscores the challenge Microsoft, Yahoo, and others in the online advertising game face in their “close the gap” efforts with Google.
Stephen Arnold, July 21, 2008
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