Bing Shows Little Impact on Paid Search Advertising in Q2

SearchIgnite issues quarterly report evaluating state of paid search landscape and performance of the top engines

ATLANTA, GA – July 14, 2009 – The launch of Microsoft’s new search engine, Bing, showed little impact on the company’s share of the U.S. paid search advertising market in Q2 09. While Microsoft’s share of spend remained flat, Yahoo! lost share to Google, which continues to dominate the search landscape, taking in 77% of paid search spend in Q2. These findings come from a report released today by SearchIgnite, a leading provider of search optimization technology managing more than $350 million in paid search annually.

“Microsoft appears to be focusing its efforts on driving consumer interest and capturing increased search query share,” said Roger Barnette, President of SearchIgnite. “We have not yet seen this translate into more paid search advertising dollars for Microsoft, although typically consumer adoption precedes advertiser adoption.”

The SearchIgnite report also reveals that retailers were a key driver of the paid search market in Q2, with search spend from existing U.S. retail marketers (“Same Retailer Spend”) up 36% year-over-year. Growth increased as the quarter progressed, with retailers increasing spend by 55% in June compared with June 08.

“We’ve seen very strong paid search spend from retailers for the last several quarters, a trend that can be attributed to an increase in retailer’s promotional activity as they turn to heavy discounting and sales to drive purchases,” added Mr. Barnette.

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