Gap between AdSense and YPN narrows

By October 16th, 2007

PPC management firm SearchIgnite, in cooperation with investment bank RBC Capital markets, reports that Yahoo’s portion of text ad spend has increased by almost 2 basis points from July to September, while Google’s share remained flat and eCPM dropped.

Much of this is due to reinvigorated interest among marketers in allocating additional budget to Yahoo Publisher Network (YPN). Spend on Yahoo increased by 7.8% between the 2nd and 3rd quarters of this year, while it inched up only 0.8% on Google against an overall PPC market increase of 1.8%.

For a long time, AdSense has been the main player in town – its reach in search and across millions of websites is unchallenged, and because of fiercer competition among advertisers, it has generated the safest source of income for publishers looking to monetize across disparate topics.

However, as Google reaches full penetration across all advertising categories and its access to inventory becomes limited (despite recent forays into radio, print and mobile ads), prices climb enough to force advertisers to consider other avenues, like YPN. Yahoo has also done its part to help improve lead quality, leading to the sorts of results that build confidence among advertisers to increase spend.

Q4 is projected to see an even higher increase in PPC–who will get the lion’s share this time?

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This entry was posted on Tuesday, October 16th, 2007 at 10:05 am and is filed under Online Advertising. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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