After losing significant marketing share to Google, 18 months ago, Microsoft (Bing) and Yahoo teamed up their search programs, creating the Search Alliance. A new study say it may be working:
- The alliance is gaining ground on Google by increasing its share of paid search impressions 4% and its share of clicks 2%. Google's shares fell by similar percentages.
- The alliance has improved traffic quality for advertisers, and conversion rates (people who click an ad and do something) rose 12%.
- With higher conversion rates and lower costs-per-click, the return on investment improved, putting the alliance 20% below industry benchmarks.
Cost per click is how much money the advertiser pays a Web "publisher" or search engine each time an individual clicks the advertisement. The lower the cost per click, the more economical the advertising for the advertiser. Source: MediaBuyerPlanner.com
- As of December 2010, the alliance delivered 21% of paid search clicks, but only captured 18% of the corresponding ad spending on search ads in North America. Advertisers should be drawn to the alliance's results. If they do, Microsoft/Yahoo could capture an additional 3% share of the money spent on search ads. That's hundreds of millions of dollars.
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