Google Got 97% of Search Spend Growth in Q4--SEM*

Leading search-engine marketing firm Efficient Frontier reports that Google captured almost all of the growth in the search spending by its clients in Q4 2007 vs Q4 2006. Yahoo, meanwhile, lost share, and Microsoft gained a modest amount.

What does this mean, exactly?

  • Overall search spending by Efficient Frontier clients increased 29% year over year.
  • Google captured 97% of this incremental growth.
  • Microsoft gained 6% of the growth.
  • Yahoo’s spending shrank 3%.


  • Google’s share of search spending in Q4 of 2007 was 77%.
  • Advertiser ROIs improved 13% across all three properties (good news for future price increases).
  • Yahoo ROIs jumped 39%, thanks to Panama.
  • Microsoft’s ROI rose 7%
  • Google’s ROI rose 8%.  However, Google’s huge volume still allowed it to capture all but a few points of spending.

*In the original post, the ROI improvement for Microsoft was wrong.

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