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.efrontier.com/research/search-engine-report/Q4-2010

Margarita Golod
Senior Product Marketing Manager

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