Outsell, Inc. Ad Spending Study Shows 58% of Small Companies Rate Google Keyword Search Effective And Only 32% Rate Yahoo! Effective.

Study Also Reveals Companies' Continued Wariness of Click Fraud, Especially Among Larger Advertisers

BURLINGAME, Calif. and LONDON -- Small and mid-size companies, but not large ones, rate Google's keyword search offering as superior to Yahoo!'s according to the second annual Outsell, Inc. study looking at companies' ad budgets and strategies, broken out by business size. Fifty-eight percent of small and mid-size companies rate Google ads effective, compared to only 32% rating Yahoo effective. But large companies see no such difference, with 63% rating Google effective and a nearly identical 62% rating Yahoo keyword search effective.

Outsell surveyed 1,010 advertisers who target the corporate, healthcare and consumer markets on a range of topics, from budgeting for print, broadcast and online media, to the effect of click fraud on spending decisions. These advertisers control $6.5 billion in spending.

"Small, medium and large companies exhibit major differences in where they allocate their ad budgets and what strategies they find most effective," said Leigh Watson Healy, Chief Analyst, Outsell.

Among additional research findings, according to Outsell Vice President and Lead Analyst Chuck Richard, are:

-Small companies devote almost twice as much of their budgets to print as medium-size companies. However, mid-size businesses rate the effectiveness of print trade magazines and events much higher than smaller companies do.

-Small companies' share of online ad spending on search engines is more than double the share of medium or large companies.

-Medium-sized companies forecast the highest growth rate of online spending, an opportunity for publishers.

-Click fraud continues to deter some companies from pay-per-click advertising. Large companies estimate that nearly one-fifth of clicks on their ads are fraudulent, compared to small companies' estimate of 14.4 percent.

FOR MORE INFORMATION:

Outsell information industry analysts are available to discuss the report and individual companies. Journalists should contact Dawn Ringel, Warner Communications, 781-449-8456 or [e-mail].

Companies that would like to purchase this report should go to http://www.outsellinc.com/store/products/504 or contact Outsell at 650-342-6060 or [e-mail].

ABOUT OUTSELL, INC.:

Outsell is the only worldwide market research and consulting company that delivers must-have intelligence and advice to publishers and information providers. We analyze markets, companies, and trends, and provide fact-based recommendations for high-level executives and product development, marketing, and strategy teams. In addition, we work with information managers to benchmark spending and demonstrate best practices. Outsell invests significantly in original research each year to guide clients in optimizing their strategies, plans, and performance. Outsell's headquarters are in Burlingame, CA, US and Outsell company EPS is based in London, UK. Visit us at www.outsellinc.com.