Small businesses that buy search spent $1,658 on average in Q3 2009, a figure that was up 91 percent from 3Q 2008, according to a new report issued by WebVisible, a company that manages online marketing campaigns for SMBs.
Thirty-three percent of the SMB search market is made up of advertisers spending between $1,000 and $1,999. Fifteen percent is made up of advertising spending between $2,000 and $2,999. Twelve percent is made up of advertising spending above $3,000 on the high end, and 19 percent spend between $100-$999 on the lower end.
The report, “State of Small Businesses Online Advertising, Search Edition, Q3,” noted that search spending is widely spread out among SMB categories, with the Top 20 categories making up just 20 percent of total search spending. Leading spenders were Attorneys, Dentists, Air Conditioning Services, Physicians & Surgeons, Insurance, Roofing, and Plumbing Contractors. Of these only the top four categories had spending share over two percent.
While Google dominates spending with over 60 percent of the market, that domination has lessened by five percentage points as lower priced competitors picked up the slack, according to the report. It also says that Google’s cost per click (CPC) jumped 14 percent from last year, and its CPC is now 30 percent above Yahoo and Microsoft’s Bing. The report notes that Yahoo has over 26 percent share, and that Bing has 10.5 percent.