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The biggest chunk of Google’s revenue, search advertising, continues to be dominated by the titans of direct response: Wireless carriers, ecommerce sites, travel and financial services. IAC (Ask.com, Match.com, Citysearch, etc) was the #1 search buyer in the first 9 months of 2011. Microsoft, General Motors, Avis and Enterprise also make the top 20.
Kantar Media data as reported on Ad Age. Above chart from Business Insider.
Hats off to Michael Learmonth at Ad Age for getting his hands on this sensitive document!
“While the search-spending document obtained by Advertising Age is not a complete list of advertisers on Google, the accuracy of its data was verified by multiple sources with direct knowledge of spending levels. It’s a revealing cross-section of Google’s business that gives some clarity to one of the most opaque areas of ad spending, and the lifeblood of many American businesses. “
Two noteworthy items in this story.
One, Google’s revenues are well distributed: Its top 10 advertisers (in June, anyway) represent only 5% of its total revenue. While 47 advertisers spent more than $1 million in the month, another 71 spent between $500,000 and $1 million, and other 357 spent between $100,000 and $500,000.
Two, Google’s revenues — which represents around half of all online ad spending — continue to skew heavily toward direct-response advertising versus brand advertising. Google’s top 10 includes University of Phoenix parent Apollo Group, Expedia, Amazon, eBay, Hotels.com and Living Social. Compare that to the list of top 10 US advertising spenders across all media:
Outside of AT&T, they are entirely different lists. At this point in the history of the Internet, it’s hard to argue that the big brands haven’t yet gotten hip to the crazy new technology. The only reasonable explanation is this: The giants of ad-supported online media — portals, publishers and social media platforms — are not offering solutions that do the stuff of brand marketing. Nobody beats search and behavioral targeting when it comes to serving up a coupon when we’re hunting for a product. But clearly the big spenders on the brand side aren’t convinced online ads can turn us on to a new shampoo or shaver, or convince us to walk into a dealership when our old car is still running fine.
Yesterday Digg announced that Matt Williams, currently an executive at Amazon, will be joining at CEO in September. From Kevin’s post:
“Matt has spent the past 11 years in a variety of roles at Amazon, most recently as GM for Consumer Payments, and earlier in his career he led Amazon’s community efforts. He was the Founder and CEO of LiveBid.com, which was acquired by Amazon in May of 1999. Matt brings seasoned management experience and has a reputation for delivering innovative products and excellent results.”
Welcome, Matt!
Interbrand’s Best 100 Global Brands (see Ad Age) puts Coke in the #1 spot again this year. Microsoft slid one position, from #2 to #3. Big upward movers were Google (+43%), Apple (+24), and Amazon (+19). BlackBerry broke onto the list for the first time at #73.
