Where do you spend your PPC money?

This latest report on allocation of search marketing dollars is very interesting. It seems to indicate that people are pulling their budgets from Yahoo and MSN and putting them into Google AdWords. We know that for some categories of clients, we have done exactly that same thing.

Another interesting tidbit in this article is the average Cost Per Click data; “Average CPCs for non-financial services advertisers on Google were up 14% from Q2 2007 to Q2 2008, while CPCs on Microsoft Live increased by 5.6% and Yahoo CPCs dropped 7%.”

One wonders if Yahoo has dropped their CPCs to entice more advertisers or if it’s a function of advertisers leaving and the cost dropping due to lack of competition?