Google has effectively monopolized the mobile search market. Google’s mobile search market share was 96.9 percent in May, according to Global StatCounter. For comparison, Google’s U.S. desktop search share was 66.7 percent last month, according to comScore (and probably even higher overseas).
Given that Google is the default search engine on iOS and Android—which represent around 80 percent of the global smartphone market—its dominance is not surprising, but it also provides some insight into the mobile ad market.
The majority of mobile ad revenues come from search, which is really just an extension of the desktop. Many assume that mobile will be a huge new revenue stream for companies like Google, but advertisers may just be shifting their resources to meet changing consumer behaviors.
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Google released solid financial results last week, meeting expectations on revenue and beating street consensus on the bottom line. However, tucked away in the earnings call was a troubling statistic: cost-per-click growth slumped 12 percent year-over-year. This follows an 8 percent drop in CPC in the prior quarter.
The drop is probably the result of a surge in mobile search queries with the growth of smartphones and tablets. While Google reportedly has an ~90 percent share of the mobile search market, mobile CPC is much lower. Conventional wisdom holds that they will eventually catch up, but we argue in a new note that this is not necessarily the case.
This is because Google’s revenue is determined by advertisers’ ROI, not the number of clicks on search ads. In other words, unless consumers start purchasing more goods because of their mobile devices, CPCs won’t rise.
It’s easy to assume that Apple is going to change the game when it launches a TV later this year.
But remember one thing: People already LOVE television.
Look how much they’re watching compared to doing other things, according to this chart posted by Peter Kafka at All Things D:
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It is now the second largest search engine in the U.S., just edging past Yahoo for the first time in December, according to the latest comScore data. That’s nice and all, but Microsoft is in a partnership with Yahoo, so it probably doesn’t want to be taking share from Yahoo.
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If you sum up the total unique user sessions in Jan 2008, Jan 2009, and Jan 2010, you get
Jan 2008 – 285M
Jan 2009 – 337M
Jan 2010 – 413M
That is a year-over-year increase of 18% and 23% respectively. Assuming the population of the world does not change that much year to year, the change in total unique sessions leads to the conclusion that online usage continues to increase noticeably.
The Compete.com chart below shows nearly identical number if unique users monthly — Google at 148M uniques and Yahoo at 132M uniques. And Facebook alone achieved another 134M uniques. So while the unique visitors across these 3 sites are not mutually exclusive, there are 414M unique user sessions in the month of January 2010
Well, this is strange. January 2010 numbers from Nielsen reveal Google has 66.3% of the search market, while Yahoo has 14.5% and Microsoft has 10.9% across its various properties. Google is 4x more than Yahoo and 6x more than Microsoft.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
Collaborators – Digital Profs
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