Oppenheimer analyst Sandeep Aggarwal hosted a conference call yesterday with Kevin Heisler, Executive Editor at Search Engine Watch-Incisive Media, and Philip Stelter, Director Business Development at Range Online Media, an online marketing and strategy firm. The bottom line? Typical good news for Google (GOOG) and–surprisingly–also some good news for Yahoo (YHOO).
1. Still healthy trends for search marketing. Q3 seasonally strong, with real strength this year in retail and travel.
2. Quality scoring putting pressure on advertisers and making keywords more expensive.
3. Google continues to gain market share of budget allocation.
4. Yahoo! is getting some of those search ad dollars back that it lost last year. Advertisers willing to experiment with Panama (Yahoo’s new search-serving system). This gain is not coming at the expense of Google.
5. Search continues to be the most effective format online. Will continue to swallow most dollars.