SOURCE: Covario, Inc.

Covario, Inc.

July 13, 2010 09:00 ET

Covario Notes Double-Digit Jump in Search Ad Spending by Tech Firms

Stands by 2010 Global Spend Forecast Predicting 14-18 Percent Growth

SAN DIEGO, CA--(Marketwire - July 13, 2010) -  Covario, Inc., a leader in both media analysis software solutions and in paid and organic search (SEO) agency services for Forbes Global 2000 companies, today issued its quarterly Global Search Spending Analysis, reporting that paid search advertising among its high-tech and consumer electronics clients was up 16.5 percent over the previous three-month period.

Second quarter results for 2010 were even more impressive when compared to the lackluster second quarter of 2009, with paid search spending up by 35 percent from last year.

In the Americas, paid search spending by tech companies increased 12 percent during the second quarter, while the Asia/Pacific region saw a 33 percent increase over the first quarter. Meanwhile, spending in the combined Europe, Middle East and African region was up 25 percent.

"With this strong second quarter performance and the anticipation of more growth to come for the rest of the year, we are standing by our original forecast that spending for paid search in 2010 will increase by 14 to 18 percent over last year," said Craig Macdonald, Covario's CMO and senior vice president of product management, who has conducted all ten installments of the company's analysis, encompassing 14 quarters of customer data.

The study touched on all of the major search engines, along with others, noting that Google -- which dominates paid search with nearly 75 percent of the global market for Covario's tech clients -- saw close to a 16 percent spending increase from the first quarter.

One aspect of Google's performance to note was its strategy change in China, where Google decided to offer its platform through Hong Kong due to censorship issues. During the second quarter, Google's share in the region dropped from 69 to 61 percent, while Baidu's share of paid search spending grew to 22 percent -- up from 12 percent in the first quarter. Google did announce last week that it is reoffering its search platform in China through a redirect, which Covario believes will stem current market share losses.

As for Yahoo, its global market share grew to nearly 15 percent in the second quarter, including a 34 percent quarter over quarter increase in the Americas and a 26 percent spend increase for Yahoo Japan. Meanwhile, the analysis found that Bing had a 15 percent reduction, marking two consecutive quarters where global spending on the Bing network decreased from the previous quarters.

Bing and Yahoo are slated to officially combine several aspects of their service Sept. 1.

"At that time, we expect the combined Bing/Yahoo platform to account for 17 percent of the global paid search market, and 21 percent of the U.S. market share," Macdonald said.

The Covario Global Search Spending Analysis is based on paid search spending from its high-tech and consumer electronics customers. The analysis spans the first quarter of 2007 through the second quarter of 2010. The combined paid search advertising spending of the brands represented totals more than $250 million annually. All data was compiled using the Covario Paid Search Insight™ offering.

About Covario, Inc.

Covario, Inc. is the leader in software and services for paid and organic search management for large advertisers. The company's product and services portfolio provides global organizations with robust interactive and search marketing analytics solutions for paid search advertising, organic search engine optimization (SEO), social media, and display advertising. Covario enables complex and distributed organizations to control brand integrity, ensure budget transparency, and deliver quantifiable results across business units, distribution channels and languages. Headquartered in San Diego, the company's growing customer base includes some of the world's best known brands in high-tech manufacturing, retail, ecommerce, financial services, consumer electronics, media, entertainment, publishing and consumer packaged goods. More information about Covario is available by calling 858.397.1500 or online at http://www.covario.com.

Contact Information

  • Contact:
    Rick Clancy
    Sr. Director, Public Relations
    858-397-1500, ext. 1643 office
    rclancy@covario.com