Google ‘dramatically outperforming’ rivals in ads

Google is faring far better than its closest rivals in the race to secure the highest revenues from advertising spend.

This is one of the primary findings to come from a new study carried out by research firms SearchIgnite and RBC Capital Markets. According to their report, Google now brings in a 76 per cent share of the total money spent on advertising among the top three search engines - with Yahoo lagging a long way back with just 18.3 per cent.

Google is managing to bring in this mammoth share despite the fact that it received 60 per cent of the total searches carried out among the top three, with Yahoo in second with 34 per cent.

The report states that Google has been able to maximise its revenues through "continual tweaking" of its quality score algorithms and minimum bid requirements for paid search, pay-per-click and other forms of internet ad.

"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," Jordan Rohan, managing director and internet analyst at RBC Capital Markets, commented.

"Furthermore, Yahoo’s Panama-related market share gains now appear somewhat temporary."

Researchers claim that Google has now surpassed Microsoft in its ability to "monetise" search for large brand marketers.


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