Adgooroo Tracks Dip in Search Engine Advertising

Search engine advertising declined during second quarter, according to the Chicago-based market research firm Adgooroo LLC.

Advertising growth was generally flat for Yahoo, down slightly for Google and significantly lower for Microsoft during the second quarter. Adgooroo described the second quarter as particularly quiet in terms of search engine advertising.

The number of ads shown on the Google search engine dropped by 40% per keyword in the last six months, based on tracking conducted by Adgooroo. It reported the average number of ads per keyword for Google declined from 6.5 to just 4 during the last six months.

The steep decline at Google may in part be due to an effort to improve overall response by eliminating less effective ads. The theory being that the remaining ads should pull higher click through and possibly conversion rates, according to Adgooroo