Thursday, July 13, 2006

Google and Yahoo! in Europe

I came across some great data on the progress of the Google and Yahoo in Europe that is worth passing along:

  • A full 42% of Google gross revenues are from outside the US with Europe representing the most of that.
  • The second quarter is seasonally slow in paid search - Q2 suffers from a deeper seasonal slow down in Europe while Q1 is, far and away, the strongest quarter of the year in search spending.
  • The travel, finance, and retail categories make up a larger percentage of total search spend. Of those, travel and finance categories have significant seasonal strength in Q1 and a lull in Q2.
  • As a result, the upside to existing Google estimates, which range from 5-11% quarter/quarter growth, is not likely to come from Western Europe. Last year Google was only able to acheive 10% quarter over quarter growth in Q2, with the US and International at the same quarter/quarter growth rate.
  • Yahoo Panama is lagging in Europe even more than in the US. An early 2007 shift towards a click-yield monetization effort is realistic for the UK and other major European markets, but not in 2006.

Your PPA Kro take away: Europe has growth but for Google to grow like they have, it's going to need to come from somewhere else - ie Asia.


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