Microsoft is fighting an uphill battle against Google in search advertising market. With Yahoo search deal, Microsoft is now providing the technology for both web search results and search advertising. According to the “State of Paid Search” report for the first quarter of the year, advertisers now spending more money on Bing than ever. In fact, Bing is now growing at a rate double that of Google. The increase in spend indicates that Bing is now becoming a more appealing network for advertisers to devote their marketing spend, in part because of its recent increases in click-through rate (CTR) combined with decreases in cost-per-clicks (CPCs).
“Bing gains ground in overall search traffic and has proven to be an appealing alternative to Google,” said Delia Perez, SVP Marketing Strategy at the firm. “A number of factors are driving this growth as advertisers are drawn to Bing’s more flexible campaign management tools in the aftermath of Google’s crossover to enhanced campaigns. Advertisers are still adjusting to Google’s bundling of device management, and Bing may be the more attractive option because it can be a customizable alternative.”
Some stats from the IgnitionOne report on Microsoft/Yahoo network.
– Market share up to 22.9% of advertiser spend
– Yahoo Bing Network clicks increased by 30% (year-over-year)
– Yahoo Bing Network clicks for smartphones increased 276 (year-over-year)
– 57%increase in Yahoo Bing Network click volume (year-over-year)