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A Little Too Little a Little Too Late…ComScore was Sorta Right



By Michelle Greer.

As Andy and Alan have both pointed out both here and here, Google squashed the hype behind comScore’s reports of tepid Google click-through rates for Q1 2008. ComScore’s defense? Their report was for domestic click-through rates only. Considering 30-50% of traffic to U.S. based websites is from overseas, this was a lot of fuss over what has become fairly useless data.

The damage was done though. Analysts used comScore’s figures to show that Google was not bulletproof against recession. Some even speculated that Google was dead.

comScore tried to assuage the press and investors alike by pointing out that Google’s efforts to reduce accidental clicks would pay off by increasing an ad’s effectiveness and therefore cost-per-click. Efficient Frontier’s figures from their Q1 2008 search engine performance report support this conclusion. According to the report:

  • ROI for Google search advertisers increased 24% in Q1 2008 vs. Q1 2007
  • Google’s average cost-per-click increased 11.2% over the same period last year
  • These figures came despite an 11.3% decrease in Google’s total impression volume

Although advertisers saw higher ROI increases by using both Yahoo (33% over Q1 2007) and MSN (29% over Q1 2007), Google still improved its dominance in the search game by increasing its share among advertisers by 3.3% to 77.2%.

So Google proved it wasn’t ready to kick the bucket just yet by improving its CPC as well as its click-through rates. And any investors who dumped Google thinking comScore was recording the behemoth’s inevitable demise are kicking themselves.

Read how search engine marketing in a slowing economy wasn’t as scary as the hype suggested by downloading Efficient Frontier’s report.

About Michelle Greer

Michelle Greer is an internet marketer/geek out of Austin, Texas. You can find her writings about ecommerce at onlinebusiness.volusion.com and her social networking blog at michellesblog.net.