According to Efficient Frontier, due to the immediacy of action by consumers, and the measurement and response on the part of the advertiser, paid search is closely tied to the state of the economy. If that’s true, things might be stabilizing. The search marketing firm in a new report shows that advertisers are pushing for even more efficiency in their online advertising spend and that the drop in search advertising from last year is holding steady.
While overall ad spend was down the second quarter from a year ago, 21 percent, that was actually better than the previous quarter at 23 percent compared to a year ago. ROI continued to increase quarter over quarter as advertisers demanded increased efficiency, adjusting their budgets to compensate for the economic climate and to improve ROI, according to the report.
Efficient Frontier also said that Google offers the most efficiency, over Bing and lagging Yahoo. As the
economy continues its slow recovery, the company said it expected advertising budgets to be in line with the overall economic
trends, so it expects Q3 2009 to be similar to Q2 2009 in regards to spend and ROI trends.