Search Ad Trends Favor Consolidation

• Posted: Monday, February 18, 2008
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• Author: pradhana
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• Filed under: Google, Mobile Services, Yahoo

How to keep the biggest from getting bigger?

Yahoo!'s official snub of Microsoft's initial offer means that an acquisition might take longer or take a different direction altogether. But Yahoo! remains fundamentally attractive for its position in the search market.

There is no escaping that Google dominates search. The company's portion of US search advertising spending grew among the top three search engines from the fourth quarter of 2006 to the fourth quarter of 2007, according to Efficient Frontier.

Google's rivals have not been sitting still. The launch of Yahoo!'s Panama platform increased the company's ROI by 39.4% during the period studied, according to Efficient Frontier.

Efficient Frontier also said that MSN lead the major search engines in average click-through rate and ROI. The research company credited this to MSN's smaller number of advertisers, making for less competition and commensurately stronger performance for advertisers.

Read more - eMarketer

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