Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Google's Biggest US Search Advertisers Spend just $1.4 Billion?

Thanks go to businessinsider.com for it's CHART OF THE DAY: Showing Companies that Spend The Most On Google Search Ads in The U.S.

http://read.bi/vAxWih

They have made their chart (shown below), from an article @ AdAge. (Who themselves had got the data from Kantar Media - a unit of ad giant WPP, which tracks ad spending in media.)

They (also) point out that: "One of the things that jumps out at us about this chart is how relatively small these ad dollars are. Google is on pace to do ~$37 billion in ad revenue for the year. And, these big advertisers only account for $1.4 billion in Google's revenue.

The other fun fact (sic) from this chart is that Microsoft spends $70 million annually, advertising on Google."

The Michael Learmonth article (AdAge) points out, that the likes of IAC, Amazon.com, AT&T, Expedia, Experian and Microsoft are at the top of the list in Google's display & brand advertising these days - and that (it's clear), that the vast majority of Google's total revenues still comes from Google's revolutionary core product ..... being search.

People need to get to fully comprehend (or, be told) the 'differences' relating to both search advertising and search ads. - And, that there is enormous 'growth' (around the corner) in search advertising, has well & truly (clearly) been telegraphed by the number of M&As in recent times, with many that are still yet to come.

Maybe (just, maybe?), this is what Friday's AdExchanger cartoon is all about?


AdExchanger: Digital Training

Anyhow .........The (businessinsider) chart below, does go a long way in helping people to understand the clear differences.

************

************
Yes. - These big (search) advertisers collectively, only account for $1.4 billion of the annual $37 billion of Google's total ad revenues. - -   ALL have their own (many & varied) means of reaching Google inventory, via their own or, through DSPs of their choice.

While this would appear to suit Google the clearly obvious 'fragmented' means of buying inventory @ scale (from any/all suitable publishers) must surely be both a costly and such a tiresome 'task of labour' by agencies/advertisers, as it stands.

Now, if "users" (that agencies/advertisers are generally targeting), could be found in a "one" RTB buy (even on Google's own publisher base - as I suspect is now starting to happen), those 'advertiser bids' ('blindly', against each other) will then get to increase naturally and publishers will enjoy a far better ROI on (each of/from), their user 'visits'. No?

So, Microsoft spends $70 million annually, advertising on Google. How much of it is bought directly (via or, through AppNexus) and how little I wonder [?] of this total spend, is being bought through, (what I feel is), a 'one fits all', yes, and (ultimately, available to all advertisers), that one big (independent - global) performance marketplace?

Looksmart - a 'pure-play' CPA/CPV performance marketplace (page 8 in 10-Q quarterly report /Q3 - 2011) tell us that the Co derives 73% of it's comprehensive (?) revenue, from customers located in the USA. (Or, from customers that accounted for more than 10% of the Co's net revenue.)

To date, some of those abovementioned (Google advertisers) can be found 'delving' in the Looksmart marketplace, where Google (currently), clearly are the 'dominent' player. (See data from Alexa, below.)

A marketplace where advertisers can get to reach targeted users in a 'one-stop-shop', across an entire global publisher base or, finding their targeted users (impressions), who are visiting those publisher sites, as are all contained within the 'select' marketplace. (Yes I do realise that it's still - very much 'early days', I'll grant.)

Upstream Sites

Which sites did users visit immediately preceding looksmart.com?

% of Unique Visits Upstream Site
35.73% google.com
6.20% yahoo.com
3.97% facebook.com
2.98% 7search.com
2.73% blendersearch.com
2.23% alexa.com
2.23% google.co.uk
2.23% marchex.com
2.23% salesforce.com
1.99% bing.com

Downstream Sites

Where do visitors go after leaving looksmart.com?

% of Unique Visits Downstream Site
38.83% google.com
5.33% yahoo.com
4.06% bing.com
4.06% expedia.com
3.55% 7search.com
3.05% facebook.com
2.79% linkedin.com
2.54% alexa.com
2.54% google.co.uk
2.03% ask.com

www.alexa.com/siteinfo/looksmart.com#

Looksmart's ("Comprehensive income"?) Revenues coming from the Company's Advertiser Networks were $7.0 million in the third quarter of 2011.

If LookSmart (in that link - advise an average Advertising Network RPC for the Q3 period in 2011 of, $0.047) were realising just 10% off each converted/performance paid click - - then this would equate to some $70 million in advertiser spend, across the Looksmart marketplace. And, when annualised, this proven superior $0.28 Billion/$1.4 Billion spend, in advertising - over a third of which is shown above, as already being Google 'generated'- should (and will get to I feel) grow exponentially, in quarters to come.

Always, only my own opinion/s expressed here.

LOOK: Dec 9: $1.26  Down 0.05 (-3.82%) finance.yahoo.com/q?s=look

LC

ps; That's one whole Instapost with no mention made at all, about (user) Seach Intent. So, I'm not sure what's come over me? - (Particularly when considering..tiny.cc/v90wi

I've just read an article (Published By: MediaPost) that asks the question, "Is Facebook Luring Marketers Towards The next Bubble?" - Read more - The writer himself (Ryan DeShazer) refers to a Gord Hotchkiss’ column last week, “The Challenge of Social”, that gave him (his words), 'pause to reconsider a bit of my own bullishness toward Facebook.'

In his exellent article, Gord (and rightly so), points out the following:

....... "The reason search excels in marketing is that it’s all about intent, and what’s even better, it’s about identified intent, neatly labeled by the search query. In the history of marketing, it’s never been easier than this to intercept a motivated buyer."

Both Ryan and Gord may care to 'check' my own thoughts, above. And note that traffic to and from Facebook - already feature in this 'uniquely independent' (yet much a fledgling), Looksmart performance (global) marketplace. One that is soley based on or, is completely about that very same .. 'identified intent'. - tiny.cc/wlng4.

Facebook - Looksmart? The more that I see is more the reason that I can't see, why not? - tiny.cc/32jjr

Here's Marco Bertozzi's look at 2012 - He's the Managing Director of Publicis's Vivaki Nerve Center - not predictions (he 'Tweets'), more observations on whats happening round him.... tiny.cc/9ai9p

(Vivaki?tiny.cc/rzfpp)

What will change specifically in media?
Our organisations are becoming more and more global by nature, the pitches, the advertisers the media properties we spend with and so the nature of new business requires a more joined up and well round global group to answer these challenges. If you don’t do it well you will lose those big international advertisers, more and more focus will go on how we weave our different agency properties together in a meaniful way that gives clients the maximum amount of insights and services with the minimum amount of disruption.

What do we need most to see greater success in 2012?
We are in a transition period where media owners, Ad Nets and Portals are all trying to plan for the future but manage their old business at the same time. As an industry we need to give companies 12 months to allow that change to happen even if it upsets shareholders and the bean counters. Many organisations will take a hit in terms of ad revenues they receive for direct response campaigns direct from agencies and have not seen it returned through the new approaches such as AOD. It does not mean its wrong, it’s just difficult to manage but they have to so they can reshape for the future.

Then again, there's always my own 2012 Prediction, for you all - to get to consider? :) tiny.cc/j6i1x

Disclosure: Long LOOK and becoming excited about the future...
.