This post has been cross-posted from the Bing Ads blog.
As I get ready to head to Europe to for a series of customer meetings on the “state of the state” regarding Bing Ads and the Yahoo! Bing Network, I thought I would provide some of the highlights my team will be sharing.
We are pleased with our partnership with Yahoo! and very encouraged by the momentum we are seeing in terms of revenue per thousand searches (RPM), ad relevance and the growth trajectory of Bing Ads. Our teams are working around the clock to make the Yahoo! Bing Network as good as it possibly can be - and we are extremely pleased with the progress we are making. While there is more work to do, I’m confident that we will continue to make positive gains in the weeks and months to come.
As you may have read, Microsoft recently extended a revenue guarantee arrangement with Yahoo! – which will further stabilize our partnership and instill confidence in the continued success and growth of the Yahoo! Bing Network. From the beginning, we have remained committed to providing advertisers a viable alternative to Google in the search market.
The following milestones and metrics give you a sense for what we have achieved in recent months:
· We have delivered more than 1,000 platform updates that have increased marketplace parity; improved the UX and editor navigability and speed; and improved compatibility/functionality with 3rdparty tool providers.
· We have increased efficiencies on our platform by 21% YoY, making it easier for advertisers to manage their campaigns
· We have launched in 15 additional markets in 2012, with 31 more to come in 2013
· We have experienced a 25% increase in click volume since last year
· Our new ad formats - Long Ad Titles, Sitelink Extensions and Local Ad Extensions - are each contributing double digit RPM improvements
Perhaps even more meaningful, however, is the commentary we are hearing from third parties about our recent performance:
· “On [the Yahoo! Bing Network], advertisers saw marked improvement in clicks. On a year-over-year basis, advertisers saw 25% higher click volumes.” – Marin Software Online Advertising Report, Oct – Dec 2012
· “The Yahoo! Bing Network has outperformed Google in return on ad spend, ending Q3 2012 with the largest gap of the 18th-month period at 28%.” - Kenshoo Global Search Advertising Trends Report – October 2012
· “The Yahoo! Bing [Network] continued to accelerate its growth with a YoY increase in spend of 48% compared to Google’s 12%.” – IgnitionOne Paid Search Update Q4 2012
· “Bing’s clicks increased both year-over-year and quarter-over-quarter, at 32% and 15.8%, respectively … [and] after four consecutive quarters of a relatively consistent market share … Bing’s share of advertiser spend grew to 21 percent, up 3.6 percent YoY and 3 percent QoQ” – The Search Agency Quarterly State of Paid Search Report, April 2013
· “Microsoft, once known as 1,000 pound gorilla impossible to move, has become an agile beast with an accelerated product release cycle. - Laurie Sullivan, MediaPost
While Microsoft is hard at work building new platform features for Bing Ads, much of this positive momentum is the result of the strong collaboration between the Yahoo! and Microsoft teams. The account leads have excelled in delivering these enhancements directly to customers – and taking customer feedback directly to our development teams. It is due to this alignment that we are making such a positive impact.
As 2013 continues, our list of wins will continue to grow and I will make sure you hear periodic updates on our progress. Thanks to the hard work of Bing and our engineering and sales organizations, we will dutifully stay on course and our commitment to the Search Alliance remains unwavering.
With the growth of the Yahoo! Bing Network as well as our improved operating performance, including the underlying trajectory of Bing Ads RPS, we pledge to continue being as transparent as possible with regard to advertising related milestones, perspectives and achievements. Watch this space.
David Pann, GM, Microsoft Advertising Search Group