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.
Business Insider Intelligence is a new research and analysis service for real-time insight and intelligence about the Internet industry. The product is currently in beta. For more information, and to sign up for a free 30-day trial, click here.
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:
- CHART OF THE DAY: Google’s Stock Craters After Investors Suddenly Remember It Owns Motorola
- CHART OF THE DAY: Android’s Share Collapses For The First Time Ever
- CHART OF THE DAY: Microsoft’s Share Of The Search Market Is Finally Bigger Than Yahoo’s
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.
- THE MICROSOFT INVESTOR: Nokia And Microsoft To Ship 37 Million Windows Phones This Year
- Microsoft Wins Again: Another Big Android Partner Signs A Patent Deal
- THE GOOGLE INVESTOR: Motorola And Chairman Schmidt Agree That Differentiation (Not Fragmentation) Is Key To Success
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
- Netflix vs Blockbuster - Perfect example of an industry replaced by a more efficient version of itself
- Coke vs Pepsi vs Dr Pepper
- Marketing Costs Normalized to CPM Basis for Comparison
- The JKWeddingDance video was real; the viral effect was MANUFACTURED - Post 1 of 2
- Samsung 52 inch HDTV $9.99 at BestBuy - purchase receipt below (6:21a eastern time August 12, 2009)
- Facebook usage by hour
- This Cornell Student Went From Sleeping In Starbucks To Investing In More Than A Dozen New Companies This Year
- Vapor4 May Be the First Bumper Worthy of the iPhone 4
- The Grand Unified Theory of Marketing(tm) - Digital String Theory
- Brand Advertisers: Escaping an Ecosystem of Digital Advertising Fraud
- #SESNY: Toward a Performance Mindset for All Advertising
- Tips for Marketers Selecting a Digital Agency
- Context Is Not King or Queen; It's Just Necessary
- 2013 New Year's Digital Marketing Resolutions
- The Good, Bad, and Ugly of Online Campaign Ratings and eGRPs
- Why You Should Banish the Net Promoter Score Immediately
- Digital Strategy To-MAY-to vs. To-MAH-to
- The Agency-Client Relationship is Forever Changed
- Targeting vs. Privacy - Who Will Win?
- April 2014 (62)
- March 2014 (231)
- February 2014 (167)
- January 2014 (222)
- December 2013 (167)
- November 2013 (111)
- October 2013 (116)
- September 2013 (214)
- August 2013 (210)
- July 2013 (200)
- June 2013 (87)
- May 2013 (87)
- April 2013 (70)
- March 2013 (114)
- February 2013 (89)
- January 2013 (136)
- December 2012 (96)
- November 2012 (130)
- October 2012 (147)
- September 2012 (94)
- August 2012 (93)
- July 2012 (112)
- June 2012 (71)
- May 2012 (82)
- April 2012 (80)
- March 2012 (122)
- February 2012 (114)
- January 2012 (129)
- December 2011 (60)
- November 2011 (54)
- October 2011 (29)
- September 2011 (17)
- August 2011 (30)
- July 2011 (18)
- June 2011 (19)
- May 2011 (23)
- April 2011 (23)
- March 2011 (52)
- February 2011 (69)
- January 2011 (108)
- December 2010 (82)
- November 2010 (67)
- October 2010 (68)
- September 2010 (44)
- August 2010 (101)
- July 2010 (61)
- June 2010 (28)
- May 2010 (28)
- April 2010 (26)
- March 2010 (33)
- February 2010 (21)
- January 2010 (12)
- December 2009 (4)
- November 2009 (2)
- October 2009 (14)
- September 2009 (6)
- August 2009 (19)
- July 2009 (34)
- June 2009 (11)
- May 2009 (4)
- April 2009 (6)
- March 2009 (13)
- February 2009 (32)
- January 2009 (25)
- December 2008 (1)
- October 2008 (1)
- June 2008 (1)
- November 2007 (1)