2009 : State of Search Marketing
By: Abbey Klaassen
In Silicon Valley years, search is getting up there.
Consider that Google celebrated its 11th birthday this year, and Goto, on which Google modeled its auction-based system (and which later became the underpinning of Yahoo’s search-marketing offering), was born in 1998.
No longer do search-engine marketing advocates have to convince big marketers on the value of search. According to trade group SEMPO, nine out of 10 marketers practice organic search optimization, and 70% use paid search.
The maturing search market has also demonstrated its ability to withstand a recession, eking out growth during recent months and gaining share on other forms of advertising. It accounted for 47% of second-quarter internet ad spending, up from 44% a year ago, according to the Interactive Advertising Bureau and PricewaterhouseCoopers.
But in some ways, it’s still very early for search, and activity this year has provided ample evidence.
In April, Microsoft Corp. announced Bing, its new search engine, with much fanfare and an $80 million ad push from WPP’s JWT, New York.
Shortly after that, in July, Microsoft announced a deal with Yahoo in which Bing would power the portal’s search for the next decade. Consumers could still perform searches at yahoo.com, but Microsoft would provide the results and the automated buying platform for advertisers. Yahoo would provide the worldwide relationship sales force for both companies’ premium search advertisers.
The move, meant to challenge the industry giant by consolidating about 26% of search share to Google’s 65%, is currently in regulatory review and is expected to be implemented next year.
But one thing is clear now: Microsoft CEO Steve Ballmer is serious about taking on Google. He said in June he’d be willing to spend 5% to 10% of Microsoft’s operating income on search for up to five years — implying spending of $1 billion to $2 billion a year based on the company’s fiscal 2009 operating profits.
Meanwhile, Google is hustling to make sure it extends the lead it’s captured in PC-based search to the mobile space, where the number of devices worldwide far outweighs the number of computers.
That was part of the reasoning behind the launch of Android, Google’s mobile operating system. Just last month, Google launched a mobile-search service that will sit on the home screen of Android phones and search contents of the phones as well as the wider web. Considering there are more than a dozen Android phones debuting over the next year in the U.S., that’s a bold move.
Reason for hope
Although Google has a wide lead in search, there’s reason for other engines to be optimistic because comparatively few searchers confine themselves to a single engine. According to Nielsen data from July for the U.S., 27% of Google searchers also used Bing at least once that month, and 39% used Yahoo. Of course, the same holds true for Bing and Yahoo searchers — a majority of them also use Google.
It’s a trend that’s obscured by the share numbers, said Ken Cassar, VP-industry insights for Nielsen Co.’s Online division. “The tendency is to assume, given Google’s share, that they’re locked in,” he said. “Certainly its lead is formidable, and I don’t see it changing significantly in the near future. But the reality is few consumers limit themselves to a single search engine, and the engine that builds a better mousetrap has the opportunity to make its case to searchers.”
Time will tell how successful “Microhoo,” or Bing, will be at picking off Google users. Advertisers, and even Google, should hope it can prove competitive as the market-share gap between Google and No. 2 Yahoo is upwards of 50 points. For advertisers, the alliance pushes the market’s players toward a closer power balance; for Google, the newly strengthened number two may help keep regulators off the giant’s back.
Regardless, it should be a year to watch. As Bryan Wiener, CEO of digital shop 360i, told Ad Age earlier this year, “The challenge is going to be how Bing and Yahoo are going to maintain their competitive position to Google during the year-and-a-half to implementation.”
well i am beginner in this search engine marketing so i do not know much about it.but i like your post very informative and got many key points here.
I’ve noticed in my search stats that I’m getting more visitors from bing. I’ve tried it myself, it gives similar results to msn.
Tell will tell if it succeeds, I’ve my fingers crossed for Bing.
yeah heard about Bing too, but i don’t think so that Microsoft will really be able to compete Google in that case, since Google SE,Maps have already dominated market and its will be really tough competition between them, lets see who wins.
let’s see can’t say anything since Microsoft and Yahoo are combining they will surely surprise Google with new boom, waiting for more reviews.
really, Google has improved them in those 11 years, they have just dominated the market and why not, since they are from when Internet and web based things were invented.
Thanks for sharing useful info.
keep posting more…
I m sure Bing of microsoft won’t be able to compete Google’s SE, since Google as a SE has dominated market since when internet was implemented, so it will be very tough for Microsoft to kick Google
Actually finding members of the general public that know the different between SEO and PPC now – I’m no longer the social outcast at dinner parties! LOL
Bing has a way to go, but I don’t think Google will have a strangle hold of the search world forever. There will eventually be some new startup genius to crack the nut.
It’s just amazing. I have gotten at leat 50 times the value from search marketing. Best. Product. Ever!
yes Microsoft has launched Bing a SE and a Video networking site too, but again i don’t think so it will be able to compete Google, since Google is in this area since when internet was implemented world-wide, so they have years of experience in it, let’s see, time will say everything
yeah Microsoft is already in competition with Google for SE, let’s see how it overtakes the largest empire of SE.
Vested interests appear to use the expression SEM to mean exclusively Pay per click advertising to the extent that the wider advertising and marketing community have accepted this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as Search Engine Optimization and Search Retargeting.
SEMM relates to activities including SEO but focuses on return on investment (ROI) management instead of relevant traffic building (as is the case of mainstream SEO). SEMM also integrates organic SEO and PayPerClick SEO. For example some of the attention is placed on the web page layout design and how content and information is displayed to the website visitor.
Nowadays Google is something more than just few years ago. The empire is growing fast and eating more and more possible branches. Now we have Chrome and Chrome OS, I wonder what will appear next? I’m a little bit concerned about Google position on market because other search engines become marginale. This way we could be witnesses of new monopoly being born (after the case of Microsoft approach). Maybe it is unfair to say that but I think that soon Google will invade also another branches of internet services.
I am a newbie here and discovering this search engine marketing so i do not know much about it.Your blog article is very informative and got many key points here.
I highly doubt even the combination of Yahoo and Bing will enable them to topple Google. The problem is, the Google almost-monopoly is discouraging people from trying out new methods which might possibly be more effective than regular search.