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Google continues to dominate European search spend

Google continues to dominate European search spend

Google continues to dominate the European market, with over 85% of the search marketing budgets going to Google in the UK, and over 95% in the rest of Europe, according to the ‘UK Search Engine Performance Report: Q2 2008’ from Efficient Frontier.

As well as holding its position in the UK in pure search, Google has further strengthened its position through a number of improvements to its content network, which has led to a modest increase in market share from 3.9% to 4.3%.

Also making modest gains in market share, Microsoft now captures 4% of search budgets in the UK. Both Google’s and Microsoft Live Search gains come at the expense of Yahoo.

The ROI available to advertisers on Microsoft Live Search is still higher than the other two engines.

This is due to the high quality of users of Microsoft Live Search and a less competitive marketplace.  Correspondingly, Google and Yahoo both offer similar ROI, but Google outperforms Yahoo! due to the high traffic volume - 8.5 times the volume on Yahoo.

Other highlights from the report include that Yahoo ROI increased by 7.9% as it made substantial efforts to improve the quality of its search syndication partners.

Additionally, cost per click (CPC) rates increased by 15.5% for Google in Q2 2008 compared to Q1 2008, while average CPCs on Microsoft Live Search increased at a slower rate of 6.1%, and Yahoo! CPCs declined by 0.5%.

The report found the global outlook for Google’s growth is very positive, with the search giant capturing more than 75% of search engine spending in Q2 2008 in the global markets in which Efficient Frontier operates, with the exception of Japan and China.

The allocation of search engine spending did not shift significantly in the US, UK, Europe or Australia between Q1 2008 and Q2 2008.

General Manager of Efficient Frontier Europe, David White, said, ““We see search continuing to be a very strong marketing channel as marketing budgets are increasingly squeezed.

"In a potentially volatile economy, it becomes even more important for advertisers to work with a search engine marketing partner that has proven technology and a services organisation focused on maximising ROI and driving growth in the search channel."

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