Second Quarter 2015 Search Engine Marketing Spending: Yahoo! Earn Bing

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With search engines playing a major role these days, it has become very important for the advertiser to understand market trends and know where to go for better ROI. Search Engine Marketing (SEM), The Paid Advertising Method To Improve The Visibility Of Individual Websites In Search Results, Is Ready To Align With The increased global ad spend totaling US $ 545 billion in 2015. While Google Inc. (NASDAQ: GOOGL) has been building on this trend for a long time, the new blue-eyed boy on the block is Yahoo !, whose partnership with Microsoft for its Yahoo! Bing research has gained more interest among investors lately.

Search Engine Marketing (SEM) Trends in 2015

According to the recent Adobe Digital Index report, there has been a 6% increase in global SEM spending in Q2 2015. Compared to Q2 2014 spending, Asia Pacific (APAC) and North America recorded an increase of 8%, while Europe, Middle East and Africa (EMEA) recorded an increase of 4%. This trend is fairly consistent with that predicted by the report at the beginning of January by MarketingProfs. As mentioned, Fast Track Asia (comprising China, India, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand, and Vietnam) has been on the rise since 2014 and continues to do so in Q2 from 2015. Compared to trends in the first quarter of 2015, the increase in Q2 2015 was marginal with the exception of APAC, where the huge increase observed in Q1 2015 subsided this quarter.

Yahoo! Bing on the rise

Yahoo! Bing did pretty well with a 16% increase in SEM YOY spend, while Google only had a 6% increase. This can be attributed to Microsoft Corporation (NASDAQ: MSFT) and Yahoo! Inc. (NASDAQ: YHOO) alliance in the field of Internet research. Regional trends for Yahoo! Bing posted a peak increase of 24% in North America followed by 15% in EMEA while APAC remained stable. The APAC showed a peak increase in Google ad spend at 9%, followed by North America and EMEA at 7% and 5% increases respectively.

Growth in SEM expenses Q2 2015

The Lower CPC on Google ads compared to an increase in CPC on Yahoo ads could also explain this market behavior In the second quarter of 2015, Yahoo! Bing had acquired 33% of the US market share while Google had 61%. A 4% year-over-year decline was recorded for Google. The impact of Yahoo! Bing is clearly evident in the way it has reduced Google’s market share. However, Google dominated the global market with 65% market share in the second quarter of 2015, followed by Yahoo! Bing at 16%. It’s now been four consecutive quarters with Yahoo! Bing records growth in SEM spending for the US market.

Quarterly advertising on commercial links in the United StatesData from the second quarter of 2015 indicates that advertisers are getting more value for their investment. The rise in Click-through rate (CTR) of 23% YOY illustrates the fact that the optimization in SEM has been well exploited. On the other hand, the Cost per click (CPC) was down 10% year-on-year. The combination of these two factors clearly highlights the case of display advertising which is increasingly becoming a top priority in the digital advertising space. By comparing the CTR by search engine, Google was in the lead in Q2 2015 with an 11% year-over-year increase while Yahoo! Bing fell from last quarter to a 2% year-over-year increase. CPC for Google and Yahoo! Bing ads showed a fairly similar trend and saw a fairly close 7% increase and 4% YOY increase. Surprisingly, desktop computers recorded the largest increase in YOY CTR for Q2 2015 compared to smartphones. Desktop computers saw a 7% increase while smartphones remained stable. Additionally, the largest increase in CPC was recorded for smartphones at 16% year-on-year, while that for desktops was 6%. Globally, the CPC of smartphones was the lowest, at just 79% of the CPC of desktops.

Mobilegeddon: first effects

Zenith has already forecast an average growth in mobile advertising of 38% per year through 2017. This only means that the increase in smartphone adoption itself would quite drastically influence the search habits of consumers in the market. whole world. With Mozilla favors Yahoo as the default search, economies of scale have changed. Mozilla itself has benefited from a share of 10.72% of all browser users (since June 2015). And if the Mozilla operating system gets off to a strong start, Yahoo could become a clear competitor to Chrome over Android, which now holds over 50% of the market.

A Google announcement earlier this year focused on optimizing the website for the mobile platform. According to the statement, Google intended to incorporate the mobile usability of a website as an important parameter in web ranking. In the wake of mobilegeddon, mobile searches around the world are expected to experience a big turnaround. The results as shown by the Q2 2015 report indicate a fairly minimal effect of a 10% decrease in organic traffic for sites with low mobile engagement. The trend of mobile CTR and CPC was in contrast to that of the global scenario with a YOY increase in CPC (16%) and decrease in CTR (9%). Revenue per visitor (VPN) for a mobile page view lags behind a desktop page view.

Global SEM ctr and CPC smartphone

The second quarter had been quite interesting with several twists and turns observed. An increase in global investments in SEM has resulted in a commensurate increase in CTR. However, an increase in CPC is sure to pose problems. Google has managed to record growth in its market size, but the pace of Yahoo! Bing is alarming enough to cause some nervousness in the quarters to come as well. The mobilegeddon has been taken well, but its doomsday impact has yet to be seen. Mobile benchmarking needs to be changed to get a better estimate of VPN independent of historical desktop performance.

Needless to say, Yahoo! Bing might need to move more rocks and please more users to grow from where it is today. Considering that Google has a lot of apps like conversion calculators smartly built into its SERPs, the way forward for Yahoo is not only to get smarter, but also to forge other default inclusions in smartphones, we believe. .

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