Google is able to monetize its search advertising more effectively than rivals Microsoft and Yahoo, according to a new report.
The report, from SearchIgnite and RBC Capital Markets shows that Google earned more per search than both of its rivals in the second quarter of 2007.
The search engine receives a larger percentage of media spend than both Yahoo and Microsoft. In June, Google swallowed up 76% of search advertising spend, though it received just 60% of searches across its sites.
By comparison, Yahoo had 34% of searches across its sites in the same period, yet received just 18.3% of total spend.
According to the report, Google’s search revenue continues to grow because of the company’s constant updating of its quality score algorithms and minimum bid requirements. In June, it made changes concerning landing page relevancy in an attempt to eliminate spam in its listings.
Jordan Rohan of RBC said:
“Interestingly, the SearchIgnite data confirms that Google’s late-May change to increase the weighting of landing page quality in the paid search ranking algorithm benefits large enterprise advertisers and makes it more difficult for affiliates and other smaller online advertisers. Furthermore, Yahoo’s Panama-related market share gains now appear somewhat temporary.”
Meanwhile, comScore figures show US search market share in June, with Google taking 49.5% of the search market, down from 50.7% in May.
Yahoo’s sites took 25.1%, down from 26.4 in May, while Microsoft’s share rose to 13.2% and Ask.com’s remained at 5%. AOL took 4.2% of the market.
