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BizReport : Search Marketing : April 11, 2007

Yahoo closing click-through-rate gap on Google

While Yahoo’s click-through rates for search ads have risen in recent months, Google’s have fallen, suggesting Panama is paying off.

by Helen Leggatt

Yahoo’s new online ad system, Panama, has been getting positive reviews from marketers and analysts alike. New data from comScore backs up such reviews. Their figures for February show Google’s click-through rate dropped 6 percent to 14.4 percent, while Yahoo’s rose 4 percent to 12.9 percent.

Some marketing strategists, such as Mona Elesseily of Page Zero Media, have seen cost-per-click and cost-per-acquisition costs decrease, some significantly. Yahoo’s pay-per-click costs are also reported to be coming down.

UBS AG analyst Ben Schachter believes the gains may propel Yahoo’s revenue growth from searches to more than 20 percent in the second half of this year, instead of his previous estimate of 15 percent.

Google continues to receive almost twice the volume of searches as Yahoo with 48 percent of searches in the U.S. in February, up from 42 percent a year ago. Yahoo remained at 28 percent.

Tags: click through rates, CTR, Google, Panama, PPA, PPC, Yahoo

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