Search growth: US slowing, Aus powering ahead

The figures coming out now for search marketing in 2008 may surprise you.

Everyone knows that for the last couple of years, search has been big and getting bigger all the time. Right? Well, that was not the case in the US.

Efficient Frontier, the large California-based global search consultancy, has just released some interesting figures in a report entitled U.S. Search Engine Performance Report: Q4 2008.

The report indicates that US retailers spent 9% more on search marketing in 2008 compared with the previous year. However, retail was the only growth sector.

US spending on search marketing declined overall last year by 8% compared with 2007.

For specific sectors, the 2008 declines included:

Automotive industry – down 10%
Travel and entertainment – down 24%
Financial services – down 25%

The report is based on an analysis of 92 billion search ad impressions and 600 million ad clicks.

Google in the US, however, maintained its dominant market share of 76%, while Yahoo increased its share slightly to 20%, followed by Microsoft Live Search at 4.2%.

In Australia, the Google market share is around 90%, according to the Interactive Advertising Bureau, and it seems that the growth of Google is continuing without pause.

Highlights of Google’s December 2008 quarter results include excellent growth in paid clicks – 18% more than the previous year, and 10% up on the September quarter.

“Search query growth was strong, revenues were up in most verticals, and we successfully contained costs,” said CEO of Google, Eric Schmidt last month. At the end of 2008, Google in Australia had some 20,222 full-time employees.