Major advertisers in the U.S. cut search spending in the first quarter by 13% despite a spending rally in March, says a new report from search marketing firm Efficient Frontier. This is the second
consecutive quarter of reduced spending by Efficient Frontier's advertising customers, the results of which could spark fresh concerns about Google's first quarter performance. The search giant
presents earnings tomorrow.
In an interview with
The Wall Street Journal, Efficient Frontier Chief Executive David Karnstedt said he wasn't sure if the weak February data represented
a bottom. "Any kind of positive bounce, like we did see in March, is a good indication. But it's too early to tell," he said. In general, Karnstedt said that advertisers were trying to bid more
efficiently, narrowing their selection to those keywords that delivered the most bang for their buck.
In the fourth quarter, Efficient Frontier reported an 8% decline in spending, citing
reduced spending by clients in the financial, retail and automotive sectors.
Read the whole story at The Wall Street Journal »