Yahoo vs. Google: Click-through-rate and Conversion

Yesterday I described the last few months of Yahoo performance, musing that upticks in ad spend share relative to Google might be due to Panama. That post described how across our client base we observed Yahoo taking back ad budget share from Google over the last 60 days, albeit a very small amount. We surmise that some aspect of how Yahoo split traffic between advertisers who had migrated and advertisers who hadn't migrated might explain the shift. (As Yahoo's quality-based ad ranking rolled out yesterday, that aspect of Panama couldn't have accounted for these shifts over the last 60 days.) As mentioned yesterday, the ratio of our Yahoo advertising efforts relative to our Google advertising efforts is a function of performance, not by an external constraint to spend a certain amount of money on one engine or the other. The following graph shows Yahoo conversion rates (green) and Yahoo click through rates (blue) climbing in the waning months of 2006, relative to Google. Note all these statistics are measured relative to Google's results: during the holiday months, both click-through and conversion rates soared on both Google and Yahoo -- the uptick indicates that these measures soared more on Yahoo. Note that even with the uptick, the graph shows that across our client portfolio, we see, in aggregate, roughly half the CTR on Yahoo vs. Google. Here are the stats discussed today and yesterday superimposed. Again, note these figures were relative index of Yahoo compared to Google. This indexation should roughly remove the seasonality. effect. Now that Yahoo has rolled out quality-based bidding, it will be interesting to see how these trends change over the coming months. Stay tuned. YHOO, GOOG
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