(Ðœ2 Bespoke News) – The two companies with the biggest share of online traffic, Google and Facebook, have firmly established themselves as leaders in online marketing. According to a report from marketing research company Efficient Frontier, they have no real competition in the search and social media channels and their dominance is expected to continue in 2012, too.

The digital marketing performance report, which is based on data from the third quarter of 2011, shows that Facebook advert cost per clicks (CPCs) have grown 54% from the previous quarter. This suggests that the competition in social media advertising is on the rise, thus pushing prices up. Overall, the total advertising spend on Facebook increased by 25% over the period.

Efficient Frontier predicts that Facebook CPCs will continue their upward movement next year, with an estimated growth of 30% to 40% quarter on quarter.

According to the report, Google regained some market share for the first time since Bing and Yahoo´s partnership was introduced. In addition, the search spend registered double-digit growth internationally, as Google continuously works on making paid search look increasingly similar to natural search. Having in mind the huge gap in search volume between Google and its closest rival, the search engine giant may rest assured of its market share for now.

Ben Hollom

October 28, 2011