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Google's search ad share now up to 77 percent

In the second quarter, those buying ads on search engines gave Google an even larger share of their money than before, according to Efficient Frontier.

Google increased its share of money spent on search ads to 77.4 percent in the second quarter, up 2 percentage points from the year-earlier period, according to new data that doubtless will interest those gauging the antitrust implications of the search leader's new advertising partnership with Yahoo.

Google dominates the share of search ad spending measured by Efficient Frontier.
Google dominates the share of search ad spending measured by Efficient Frontier. Efficient Frontier

According to the statistics from search marketing firm Efficient Frontier, which bases its conclusions on data from a specific set of large-scale search advertisers, Yahoo dropped nearly 2 percentage points to 17.8 percent of spending and Microsoft stayed level at about 4.8 percent.

Search ads are shown next to some search results; advertisers bid for placement next to searches using specific keywords and pay only when a searcher clicks on an ad. Yahoo signed a deal in June under which Google will supply some search ads. Yahoo expects up to $800 million in new revenue during the first year of the deal, but it's triggered antitrust scrutiny from the Justice Department, several states, and Congress.

Also of interest:

• Google's cost per click--the amount advertisers pay on average--increased 13.8 percent in the second quarter. Microsoft's increased 5.6 percent, but Yahoo's dropped 7.3 percent, Efficient Frontier said.

• Among specific search advertising categories, automotive ad spending increased 24 percent, retail increased 1 percent, financial services dropped 7 percent, and travel dropped 17 percent.

• Google for the first time attained a majority of the search ad money spent in Japan, with 56 percent in the quarter.