Posts Tagged ‘Google Advertising’

Google still dominates advertising but Facebook is on the rise

Google still dominates advertising but Facebook is on the rise

by Ciara Byrne

Google has been criticized lately for a decline in the quality of its search results, but that hasn’t stopped it from continuing to dominate the market in search advertising with 83 percent market share, according to a new research report from IHS Screen Digest. Its only real rival is likely to come from social media.

The report estimates Google’s market share of search advertising at 83 percent in 2010, up from 81 percent in 2009. According to the report, Google’s full-year search advertising revenue in 2010 amounted to $25.4 billion, an increase of 20.2 percent from $21.1 billion in 2009. Google’s official earnings results for the fourth quarter of 2010 will be announced tomorrow.

Google’s revenue growth was even stronger in display and mobile advertising. Display revenue increased by an estimated 61 percent during 2010, boosted by the success of Google’s subsidiaries YouTube and DoubleClick. On the mobile ad side, Google benefited from the increasing popularity of the Android operating system and the AdMob acquisition.

In 2010, Google faced the first major challenge to its search business in many years with the launch of Microsoft’s Bing. However, Google has so far lost little or no ground. Bing grew mostly at the expense of its partner Yahoo.

The report predicts that the only real threat to Google is social media, rather than competing search engines. Facebook’s global advertising revenues were estimated at $1.2 billion for the first nine months of 2010. By providing a similar scale, low cost and more focused targeting to advertisers, social advertising could become a viable alternative to both search engine and display advertising. Bing already has a partnership with Facebook where Bing highlights search results endorsed by your Facebook friends and multiple startups are also working on social search.

While Google remains the undisputed leader in most major markets, there are some notable exceptions including South Korea, Russia and, most importantly, China. In these markets, the dominant search engines belong to local operators, NHN, Yandex and Baidu respectively. After its dispute with the Chinese government in the first half of the year, Google lost significant market share to Baidu in 2010, but it finally decided to remain in a search market that is already worth $1.6 billion and growing at an impressive 60 percent in 2010.

IHS Screen Digest expects Google’s total revenues to have reached $28.9 billion in 2010, a rise of 22.5 percent from 2009.

SEM: Search Engine Marketing

Search Engine Marketing

Of the many emerging techniques and disciplines that have developed in the decentralized, Web 2.0 era of business, Search Engine Marketing is one popular and increasingly competitive way of handling marketing and advertising on the Internet. While the term is in itself rather vague, it can be broken down into several distinct subsets. As the name implies, Search Engine Marketing, or SEM, utilizes rankings in search engine results to promote links to specific sites, in the hopes of affecting buying decisions.

Many use SEM to refer more exactly to what is known as PPC, or pay per click advertising. Unlike traditional print and visual media advertising, the advertiser doesn’t have to pay specifically for space or airtime, but is ranked in high profile positions within search engine results based on how much they are willing to pay for Google Adwords and Yahoo! Search Marketing listings if a prospective buyer should click on their link and follow it to their site. The general idea is rather simple, but implementing a successful SEM campaign is far more complex than it would first appear.

For starters, there is the typical advertising and marketing considerations to weigh when embarking on a Search Engine Marketing effort. Wording is important when configuring the appropriate pitch. What works with certain keyword phrases may not work with others. Careful research must be done to match the correct pitch to the demographic most likely to use that set of search phrases. Just because you can get a lot of clicks doesn’t mean it will translate into sales. You need to target buyers, not casual “window shoppers” or random surfers.

The next area that must be dealt with delicately is the economics of the campaign itself. Comparing the costs of the campaign versus the additional revenue brought in is key. Obviously, normal economics applies here. If the campaign is a money loser out of the gate, its bad. If you’re paying $10.00 per click, which is not an unreasonable price for highly sought after keyword phrases, and each click on average brings in $8.00 all told, some reconfiguring needs to be done. The idea is to hit the right niche search term with a high enough search volume but low enough competition from other advertisers to be profitable.

SEM is a complex and involved area of business that is becoming all the more crucial to the online portion of any enterprise. It’s not for the faint of heart and requires a lot of hard work and concentration, as well as constant maintenance to be effective. For larger businesses it often makes sense to outsource this to companies or firms that specialize in optimizing SEM programs for the maximum gain. In many cases, hiring a well respected outside contractor to handle this task is a wise move. In any event, as more advertising and marketing moves online, this will become increasingly important with each passing year.

SEM - Search Engine Marketing

SEM - Search Engine Marketing

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