Sunday, February 01, 2009

Google's continued dominance of search advertising

Google continues to maintain its dominating position as the leader in the lucrative search advertising space.  Google ended 2008 with a 63.5% share of search advertising, up 5% from 2007 - according to Comscore. 


More impressive, Google's relative performance compared to its peers is staggering.  Approximately 90% of all growth in search volume was captured by Google.  This chart clearly shows Google's dominating relative performace as all of its competitors essentially experienced flat growth.


Of course, none of this should come as much of a surprise.  Google enjoys strong competitive advantages in regards to its proprietary technology (i.e. it's results are simply better than other search engines) and customer captivity (Google is now essentially synonymous with search). Importantly, as more people use Google's engine, its search results improve even more as the search technology *learns* from the actions of users.  


Taken together, advertisers are wise to channel ad-spend towards the engine used (almost ubiquitously) by consumers.  




1 comment:

Jeremy Kagan said...

We'll have the entire Comscore report posted on Angel....