January 29, 2009, 12:00 AM

Retailers spent 9% more on search marketing in `08, Efficient Frontier says

While spending on search marketing declined overall last year by 8% over 2007 in the U.S., spending by the retail industry rose 9%, search marketing firm Efficient Frontier says. Google maintained its 76% market share, as Yahoo grew its share to 20%.

While spending on search marketing declined overall last year by 8% over 2007 in the U.S., spending by the retail industry rose 9%, search marketing firm Efficient Frontier says in its “U.S. Search Engine Performance Report: Q4 2008.”

By comparison, the report found that spending on search marketing declined by 10% in the automotive industry, 24% in travel and entertainment, and 25% in financial services. The report is based on an analysis of 92 billion search ad impressions and 600 million ad clicks across a portion of Efficient Frontier’s client base.

Across all industries in the study, spending on cost-per-click search marketing ads declined 5% in 2008 over 2007. Click-through rates, meanwhile, gained only 2%. By search engines, click-through rates improved by 3% at Yahoo but decreased by 2% at Google Search, the study says.

Google, however, maintained its dominant market share of 76%, while Yahoo increased its share slightly to 20%, followed by Microsoft Live Search at 4.2%.

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