The State of Search Marketing: 2009

Google Accounts for Two of Three Searches, but a New Microsoft/Yahoo Venture Could Mean a Stronger No. 2

by Abbey Klaassen
Published: November 02, 2009

NEW YORK (AdAge.com) -- In Silicon Valley years, search is getting up there.

Consider that Google celebrated its 11th birthday this year, and Goto, on which Google modeled its auction-based system (and which later became the underpinning of Yahoo's search-marketing offering), was born in 1998.

No longer do search-engine marketing advocates have to convince big marketers on the value of search. According to trade group SEMPO, nine out of 10 marketers practice organic search optimization, and 70% use paid search.

The maturing search market has also demonstrated its ability to withstand a recession, eking out growth during recent months and gaining share on other forms of advertising. It accounted for 47% of second-quarter internet ad spending, up from 44% a year ago, according to the Interactive Advertising Bureau and PricewaterhouseCoopers.

But in some ways, it's still very early for search, and activity this year has provided ample evidence.

In April, Microsoft Corp. announced Bing, its new search engine, with much fanfare and an $80 million ad push from WPP's JWT, New York.

Shortly after that, in July, Microsoft announced a deal with Yahoo in which Bing would power the portal's search for the next decade. Consumers could still perform searches at yahoo.com, but Microsoft would provide the results and the automated buying platform for advertisers. Yahoo would provide the worldwide relationship sales force for both companies' premium search advertisers.