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Retailers drive up search spending by 14%

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Although most economic indicators trended negatively during the last quarter of 2008, Efficient Frontier has found that search spending increased 14% over the third quarter and 11% over the year before.

“This trend was largely driven by the retail sector seeking to capitalize on a growth trend in impression volume, and is an indication of the strength of the search marketing channel as UK consumers continue to move online,” says the company’s UK Search Engine Performance Report: Q4 2008.

The report is based on an analysis of more than 4bn impressions and 58m clicks across an selection of Efficient Frontier UK customers.

The report also found that Google grew its overall UK market share from 82.6% to 88.2% whilst Yahoo’s share dropped 40% from 13.9% to 8.4%. Microsoft Live Search “was able to maintain its presence in the UK market at 3.4% market share”, says Efficient Frontier.

“The current recession has made it even more critical for search marketers to know their metrics and manage campaigns based on actionable market, sales funnel and conversion data,” says James Beriker, president and CEO of Efficient Frontier.

“The increased level of search spend during Q4 can be in large part attributed to the strength of the online retail channel in price comparison and shopping efficiency, particularly for more established online brands who increased spend to reach revenue goals,” he added. “The retail landscape has changed dramatically in recent times as consumers increasingly turn to online shopping and search marketers are now recognising this trend.”

Readers can download a full copy of the report from Efficient Frontier’s website.

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