AdGooroo Q408 Search Advertising Report: Strongest Quarter on Record

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Q408 Search Advertising Report: Strongest Quarter on Record

Search Engine Advertiser Update – Q408
January 12, 2009

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December’s data continues to support our thesis that Q4 will prove to be the strongest quarter on record for Google and Microsoft Live Search.

Google led in Q4 with first-page advertiser growth of 58.0%, followed by Live Search with 42.3%. Yahoo trailed with a mere 8.8%, surprisingly low given the brisk pace of online holiday sales.

The above is just a small portion of the full report. To continue reading, please complete the download form on the right. This five-page report also contains the following tables and charts:

1. Monthly Growth in Advertiser Count
2. Share of Advertisers by Search Engine
3. Avg # Ads/Keyword (US & International)
4. Avg # Ads/Keyword (US only)
5. Top 25 Advertisers by Search Engine

Excerpt from "Q408 Search Advertising Report"

Microsoft continued to close the gap in advertiser share with Yahoo. In Q3, Yahoo led by 17.6 percent (30.4% vs. 12.0%). By the end of Q4, this lead has narrowed to 3.0% (19.4% vs. 16.4%).

As we reported in our mid-quarter update, we measured large increases in ad coverage on Google - a trend which continued throughout December. Yahoo remained consistent with previous 2008 ad coverage measurements, while Microsoft ad coverage declined in Q4 (indicative of continuing focus on ad quality control and holistic search).

We expect a flattening out or even a decline of advertiser accounts into Q1. This is typical of the post-holiday quarter, but should nevertheless lead to positive Y/Y growth.