Wednesday, September 27, 2006

Efficient Frontier - European Launch

In case your office didn't come to a complete standstill when this press hit the wires, EF officially announced its European launch today.

European PPC is growing faster than in the U.S. and the arbitrageurs - perfect indicators of opportunity - are much more active in the UK and Europe than they are in the U.S.

What's different about PPC in Europe?

1)There is no Europe, but rather 15+ different countries whose users must be targeted separately. There may be one currency, but that's where the similarities stop.

2)There's more broadband adoption in Western Europe, leading to higher connection speeds and thus more searches per month per searcher.

3)Google dominates search to a much greater extent than in the U.S. Their European marketshare is 75-85% vs 58-60% in the U.S. Google being the opaque marketplace that it is, this presents a great opportunity for EF to do well there because - unlike all the rules-based systems littering the SEM market - our portfolio algorithms work well in modelling traffic and conversions despite Google's opacity.

We've hired a great team to sell and service our growing European client base, and I fully expect EF to be managing more PPC spend that any other firm in Europe in 2 years' time.


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