online marketing psychology

September 9, 2010

What do companies spend on Google AdWords?

Ever since we got all those free Google AdWords coupons in the company mailbox, I have been toying around with it.
Our company is active in a small niche of the market with low search volumes. So for a couple hundred dollars we have been able to stay at the top positions for our product searches.

But I was wondering what other companies were doing with the service. So this article on AdAge came in handy to find that out. It talks about the spending of corporations on AdWords in June 2010.
A graph showing Google adwords spend in june 2010 for companies like bp and amazon

AT&T Mobility is with $8 million the top spender. A big part of this budget was used to launch the new iPhone. Other big spenders are Apollo Group (=University of Phoenix), the online travel agency Expedia, eBay and Amazon. They all spent between $4 and $6 million in June. 

These numbers show that the big sites really want to be there when the consumer is looking for a product or service they offer. Like said on the Impact SEO blog:
For a few extra cents(dollars) Amazon can ensure that they are the first advert people see when they search for a product. This can not only lead to a single sale, but help develop repeat customer. An investment in visibility now can provide long-term benefits.

One of the surprises was the big surge in spending of BP, looking to steer the public searches after the oil spill. Before they were spending $57,000 a month and after $3.59 million!
But the main keyword income doesn't come from these giant budgets. The top 10 accounted for just 5% of the Google's income during June.

Graph courtesy of AdAge.

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