Facebook Is Mostly Stealing Local Spend From Newspapers And Radio, Not Google

We just got off the phone with SVP of Clients Services Michael Kahn of Performics (a leading SEM agency) and found out the following:

  • In the past quarter, interest from clients on mobile search and social network ad offerings like Facebook self-serve has spiked considerably.  However, these dollars are mostly not coming from Google, but more from traditional media like newspapers and radio.
  • From October 2009 through March 2010, Bing gained 100 basis points share of Performics client spend, but nearly all of it came at the expense of Yahoo, not Google.  This trend appears to be continuing into April though data is limited.
  • Retailers are still getting strong conversion rates form the CPA-based Google Product Ads.

What jumped out at us, was the fact that Facebook’s growth isn’t yet impacting Google’s core business – CPC search ads.  This is good news for Google since it needs to maintain its about 70% share of the search market as it looks for other areas of growth.

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