eMarketing: Search Engine Industry Trends

Success of Paid Search Engines
  • Twenty-eight percent of consumers go to a search engine and enter the type of product they're looking for, while only five percent go to the shopping channel of a search engine
  • Paid search engines are faring well during the soft online ad market because they are among the few that have successfully aligned the needs of both consumers and marketers.
  • Paid search placement models are succeeding because consumers are finding relevant listings much faster on paid search engines, while advertisers are only paying for qualified lead traffic on a per-click basis.
Source: Jupiter Media Metrix, July 30, 2001
"Paid Search Engines Picking Up Slack for Depressed Online Ad Market"

  • GoTo kicks back an average of 67 percent of revenue to the sites that display its listings.
  • In the first quarter, GoTo collected payments for 314 million mouse clicks by users on its results, up from 88 million in the 2000 quarter.
  • GoTo has 42,000 advertisers, up from 25,000 in its 2000 first quarter.

Source: New York Times, June 4, 2001
"Paid Placement Is Catching On in Web Searches" by Saul Hansell
Decline of Other Forms of Online Advertising
  • Over 70 percent of unique visitors leave pop-under ad windows in less than 20 seconds.
  • The cheap and limitless inventory that pop-under ads depend on will disappear at high-traffic sites within six to nine months.

Source: Jupiter Media Metrix, July 26, 2001
"Pop-Under Ads Build Brand Awareness At The Expense Of Brand Affinity, Reports Jupiter Media Metrix"
General Online Marketing
  • Return on investment (ROI) from online advertising is at least 25 percent to 35 percent higher than most marketers believe.
Source: Jupiter Media Metrix, June 25, 2001
"Quantifying Online Branding Shows That Online Advertising's Return On Investment Can Be 25-35 Percent Higher Than Most Marketers Believe, Reports Jupiter Media Metrix"

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