How Much Do Google, Bing, Yahoo Spend On Paid-Search Ads?


AdGooroo has created a searchable database that allows agencies and advertisers to gain competitive analysis. The tool -- Industry Insight -- allows marketers to research competitive keywords, as well as compare the monthly amount spent on paid-search ads.

Marketers can sign up to use the database and gain immediate access to two years of searchable data that estimates how much competitors spent on paid-search ads for any specific month. The platform allows marketers to compare companies or industries.

AdGooroo's network of worldwide servers, and the ability to exchange data through the Google API, gives the company the data to make educated estimates on competitive analysis. The platform measures impressions, not keywords, to provide approximations on ad spend. Marketers can analyze the data by U.S. or worldwide.

Limitations exist, however, as AdGooroo continues to build out the database. The data is based on Google sites, but the product road map incorporates other engines. And, today, marketers can only compare two companies simultaneously.

Reports include Industry Overview, Top Advertisers, Industry Keywords, Industry Trends, Advertiser Overview, Advertiser Keywords, and Comparison Reports for Advertisers and Keywords.

I've been told that spends by Google, Bing, and Yahoo cannot really be measured with this methodology, because it's believed that the engines barter advertising with each other. So while they might not really spend actual money for the ads, this is what they might spend if they had to pay for it.

For example, historical advertising estimates for paid search in the U.S. on Google sites suggest spent just more than $1 million in December 2011 -- up from $578,000 sequentially, according to AdGooroo analysis. spent $1.2 million -- down from $1.9 million in November 2011, respectively. And -- since the majority of its advertising appeared on its network of sites -- might have actually paid an estimated $9.8 million in December and November 2011.

Aside from estimated spend for paid-search ads, the AdGooroo Industry Insight user dashboard allows marketers to view clicks, CPCs, CTRs, and the number of keywords. It also provides graphical line charts to show historic spend, CTRs, CPC, rankings, and more.

It's not clear whether AdGooroo plans to provide the same searchable database for display ads and search engine optimization data.

The database is created through a combination of global data collection and machine learning algorithms. AdGooroo takes into account the usual variables such as estimated search traffic and average cost-per-click prices, as well as other variables that provide insight into advertising activity such as keyword specificity, overall competitiveness, average position and coverage, branded terms, and ad copy, according to Rich Stokes, AdGooroo founder.

And while no system can offer accuracy down to the penny, Stokes believes it is the first database to combine important factors to produce reliable estimates that can identify shifts in industry demand, new product rollouts, and even important algorithm changes as they occur.

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