“Google’s active advertiser count is a whopping 54.9 percent higher than it was in the fourth quarter of 2007, and this runs counter to what we hear in the marketplace today,” said AdGooroo Founder and Chief Gooroo Rich Stokes. “Some of this growth can be attributed to general year-over-year growth in consumer search usage, but Google has clearly adjusted their algorithm to serve more ads to consumers in each search in order to generate this impressive growth in first-page advertisers.”
“We’ve proven in previous reports that ad coverage on the search engines provides a leading indicator of advertising activity,” Stokes said. “The Q4 data we analyzed show Google has increased its ad coverage back to their January 2008 levels. In fact, we saw first page Google ads increase from a low of 2.4 ads/search in September up to 4.4 ads/search in December.”
Other key findings from the report:
— Microsoft increased its share of advertisers by an estimated 11.5 percent from Q3 2008
— Although Yahoo increased its active advertiser count, its U.S. and international share of advertisers dropped from 30.4 percent in September to 20.4 percent in November
— Q4 2008 may be the strongest quarter on record for both Google and Microsoft.