Posts Tagged ‘MSN’

For every $1 spent on search, Google gets $1.10

Thursday, July 17th, 2008

I just saw the headlines from a report this week that Google is earning $1.10 of every new search dollar spent. This didn’t make sense (obviously) because Google is magic, but I couldn’t imagine how they were creating money out of nothing. Turns out that the explanation is simpler:

“For every new dollar spent on search in Q2 2008 versus Q2 2007, $1.10 went to Google. Yahoo lost $0.09, and Microsoft lost $0.01. In other words, advertisers are putting all of their new search dollars into Google, and pulling money out of Yahoo Search and Microsoft Live Search.”

Dollar BillLooks like Efficient Frontier Insights, the company that published Search Engine Performance Report: Q2 2008, is looking for publicity with that headline, because it isn’t really accurate. Google may be taking money away from Yahoo and MSN, but they aren’t taking $1.10 of every NEW dollar. Google may be taking old dollars away from its competitors, but it isn’t creating money out of nothing.

Nevertheless, the news remains strong for search advertising. Some other highlights from the report – CPC rates increased for all three search giants compared to Q2 of last year, as did ROI.

Americas about to fall behind in information industry

Tuesday, November 13th, 2007

Outsell LogoIf you haven’t caught the hint yet, there is more news today that the global market is gaining in importance. According to a press release from Outsell, the information industry revenue that is generated in Asia, Europe, Middle East and Africa (EMEA) is ready to overtake North, South and Central American revenues within one to two years. And things are already heading that way. Currently, American information industry revenues are 53% of the worldwide total, with EMEA and Asia at 47%.

The other bit of information, which was buried in the middle of the release, is that during a presentation today on “The Global Industry Outlook” at Outsell’s Signature Event, Chief Analyst Leigh Watson Healy offered up Outsell’s 10 predictions for the information industry in 2008. One of note: the firm expects the next evolution of the Internet experience to be Web 3D.

Whenever a company makes a prediction, I like to see how they did with their past prophesies. If you’re interested, Outsell’s 2007 predictions are available in a free report. Some of what they suggested would happen this year has happened, but one item in particular seems to be a false reading on the market: “Google, Yahoo, MSN, publishers, advertisers and auditors will establish standardized third-party audit and certification processes to validate clicks and battle click fraud.”

So far, this hasn’t happened – but there is still a little more than a month to go before we ring in 2008.