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Microsoft Advertising was the Big Winner in Q2 2019

Merkle’s Q2 2019 Digital Marketing Report delivered an unusual piece of news last week: a rival search engine advertising business took a bite out of Google Ads dominant market share.

Total United States search advertising spend was up 14 per cent year-over-year (YOY, although growth continues to slow. However, it was the relative success of Microsoft Advertising that that caught Search Engine Land’s attention.

“Desktop spend on Microsoft Advertising had its strongest quarter in more than three years in the second quarter of 2019,” the digital marketing publication reported.

“Microsoft Advertising’s gain came in large part from its deal with Verizon Media to handle all search ad inventory across its properties, including Yahoo.”

Microsoft’s gain last quarter was unquestionably Google’s loss. Google had been serving Verizon’s Yahoo shopping ads since 2016 before Microsoft took over the business this year.

“Yahoo dropping Google’s ads in favour of Bing Product Ads at the end of Q1 appears to have had a meaningful impact,” the Merkle report read.

Overall, spending on Microsoft Advertising was up 8 per cent over combined Bing Ads and Yahoo Gemini spend YOY, driven in large part by a 54 per cent YOY increase in shopping ad spend. Google Shopping also saw a 38 per cent YOY spending leap, although that lagged behind the 41 per cent boost it enjoyed in Q1.

Microsoft’s success in Q2 2019 doesn’t in any way threaten Google’s digital advertising supremacy. Google remains the world’s most popular search engine and largest advertising business. Digital advertising isn’t a monolithic industry, however. Savvy marketers use Microsoft Advertising, Facebook Ads, and other Google alternatives to reach the widest possible audience.

As a Google Premier Partner digital marketing agency with access to valuable insights on Google’s preferred practices, GrowthEngine Media is equipped to guide your digital marketing strategy across multiple platforms.