Google Gets Richer: $1.10 for Each New Dollar Spent on Search, 77% of All Search Spending

• Google accounted for 77.4% of US search engine ad spend in the second quarter (increase of 2 percentage points over 2Q07)

• Yahoo lost 2% points of search engine share in the same period (accounting for 17.8% of total spend)
• Microsoft Live Search’s share remained stable at 4.8% of search engine spending

Efficient Frontier found :

For every new dollar spent on search ads in Q2 2008 (compared with Q2 2007)

• Google received $1.10
• Yahoo lost $0.09
  
• Microsoft Live Search lost $0.01

Other highlights:

• Cost-per-click (CPC) rates increased 13.8% for Google in Q2 compared with the year-earlier period, whereas average CPCs on Microsoft Live Search increased at the slower rate of 5.6% and Yahoo CPCs declined 7.3%.

• Return on investment (ROI) improved on all three search engines, with ROI leader Microsoft Live Search improving 25% from 2Q07; ROI on Yahoo Search increased 13%, and Google’s ROI increased 3%.

• Advertisers * Automotive increased search advertising spending 24% in Q2 versus 2Q07 * Retailers increased search spending a cautious 1% * Financial services advertisers, hit hard by the mortgage crisis, decreased search engine spending 7% * Travel advertisers decreased spend 17% as consumers pulled back on leisure spending.

• Google’s growth is positive, with the search giant capturing 75% or more of search engine spending in Q2 in the global markets(with the exception of Japan and China).

(via Efficient Frontier)