What Big Brands Are Spending on Google

Advertiser search spending on Google show a large number of smaller firms use search ads, in addition to a relatively small number of firms spending more than $1 million a month, Ad Age reports.

Some 47 advertisers that spent more than $1 million in June; 71 spent between $500,000 and $1 million, and 357 spent between $100,000 and $500,000, a study finds.

In addition to those direct-billed customers, there are many more thousands of small self-serve advertisers that make up Google's $23 billion global annual revenue.

What Big Brands Are Spending on Google - Advertising Age

Typical Small Business Search Advertiser Spends $2231 Per Year

Small businesses have dramatically increased their spending on search advertising over the past year, up 159 percent, in fact.

Small Business Commits to Social Media, Email, Search

About 75 percent of small businesses will increase their spending on email marketing in 2010, while nearly 70 percent will spend more on social media, according to VerticalResponse.

The findings might not suggest small businesses are spending wildly. In most cases the firms likely are testing new media. But the testing seems very widespread.

Almost all businesses with 500 or fewer employees will use email marketing next year, the company says. Only 3.8 percent of small business executives say they will not be using email marketing in 2010.

More than 70 percent also indicated they would not use TV or radio advertising.

Search advertising is used by about 72 percent of small businesses, but banner advertising is used by about 40 percent of small businesses, VerticalResponse says.

Facebook, Twitter and YouTube, as well as other social media sites, are used by about 78 percent of small businesses, the firm says.

Search Advertising: Big Growth in 2008

JPMorgan analysts now forecast 31.9 percent growth in search advertising revenues for 2008. Analysts at JPMorgan initially had thought growth would come in at about a 19-percent clip. So they sense acceleration. Me too.

Search Ads Will Drive U.K. Spending Growth

Internet searches will contribute around three-quarters of the growth of U.K. advertising in 2008, according to Group M, a unit of WPP Group, says the Dow Jones news wire.

U.K. advertising will grow by six percent in 2008, and all but 1.5 percent of that will come from search engine ads.

Group M also said the value of the Internet advertising market will come close to that of the television advertising market in 2008.

Newspaper advertising revenue is expected to decline by 2.8 percent in 2008, after a 3.4 percent decline in 2007, Group M forecasts.