Today we released our Dig­i­tal Mar­ket­ing Per­for­mance Report for Q4. Key high­lights from Q4 and 2010 include:

  • Search engine mar­ket­ing (SEM) posted solid year on year (YoY) growth of 23% and 18% quar­ter on quar­ter (QoQ), sig­nal­ing an eco­nomic turn­around by both adver­tis­ers and consumers.
  • The demand for dis­play adver­tis­ing was rein­vig­o­rated through­out 2010 with Google AdEx respon­si­ble for the major­ity of exchange-based dis­play media spend.  In Q4, Google AdEx rep­re­sented about 70% of adver­tis­ers’ dis­play media spend outlay.
  • Google con­tin­ues to ben­e­fit from the Bing-Yahoo! inte­gra­tion with gains of 4.6% mar­ket share in spend YoY and 8% click share YoY. The Google gains come at the direct expense of Bing-Yahoo!. Yet, the Bing-Yahoo! tran­si­tion went smoothly and the com­bined plat­form did not lose mar­ket share by spend between Q3 and Q4.
  • Facebook’s mar­ket­place adver­tis­ing con­tin­ues to be strong and early results show that, in addi­tion to being a sig­nif­i­cant stand-alone mar­ket­ing chan­nel, Face­book adver­tis­ing has a pos­i­tive impact on other dig­i­tal mar­ket­ing chan­nels such as search and display.

Our out­look for 2011 is positive:

  • Search will con­tinue its growth in 2011 due to con­tin­ued CPC increases. Our pre­dic­tion is that search spend will increase by 15–20% YoY in the U.S. in 2011.
  • We believe that Bing-Yahoo! mar­ket spend share will start to climb back as smaller and medium sized adver­tis­ers with increased bud­gets take advan­tage of the vol­ume poten­tial and stronger return on invest­ment (ROI) on the new platform.
  • 2010 was a strong year for dis­play adver­tis­ing, espe­cially for Google AdEx.  We pre­dict that it will con­tinue to gain mar­ket share.  Addi­tion­ally, we believe that social media adver­tis­ing – espe­cially Face­book – will con­tinue to gain momen­tum. Adver­tis­ers that have solved the cross chan­nel mar­ket­ing puz­zle by equip­ping them­selves with the appro­pri­ate tools to mea­sure and mon­e­tize the cross chan­nel impact will have a leg up in 2011.

Down­load the full report and analy­sis here: http://​www​.efron​tier​.com/​r​e​s​e​a​r​c​h​/​s​e​a​r​c​h​-​e​n​g​i​n​e​-​r​e​p​o​r​t​/​Q​4​-​2​010

Mar­garita Golod
Senior Prod­uct Mar­ket­ing Manager