Small and midsize companies prefer to run ads on Google over Yahoo, according to a study on advertising strategies by Outsell, a Burlingame, Calif.-based market research firm.

Out of more than 1,000 advertisers polled, 58 percent said Google ads were the most effective for small and midsize companies, compared to just 32 percent who cited Yahoo. More respondents also said the keyword search function on Google was superior.

In additional, the study found that smaller companies on average devoted twice as much of their advertising budgets to print than midsize companies, while spending more than double on boosting online search engine results. Smaller companies also gauged the level of click fraud from pay-per-click advertising at about 14 percent.

Published on: Jul 19, 2007