Skip to main content

Search Ad Spending will Reach $30 Billion by 2016


Search Engine Marketing (SEM) practices have evolved over the last few years, but the demand from small, medium and very large brand advertisers has been consistent. The upside market potential is impressive and one company stands to gain significantly from this phenomenon -- Google.

According to the latest market assessment by eMarketer, U.S. search engine advertiser spending will maintain strong growth this year -- in part, boosted by major national government elections and the London 2012 Olympic Games.

eMarketer estimates that U.S. search spending this year will rise 27 percent to $19.51 billion. By 2016, search ad spending will approach $30 billion, following slower but consistent growth between now and then.

Among the top four search sites, Google revenues will grow most quickly in 2012, although the growth rates at Microsoft will surpass Google in 2013 and 2014.

Regardless, by that point in time, Google will have nearly 10 times the search ad revenue of Microsoft -- that's $20.28 billion (Google) vs. just $2.21 billion (Microsoft). Google will remain the search ad leader in the U.S., and will continue to solidify its dominant position in the marketplace.

This year, eMarketer estimates Google will attain 77.9 percent of all U.S. search ad revenues. By 2014, its share will be 79.8 percenet.

Microsoft likewise will gain some market share -- as Yahoo! and AOL continue to be marginal players in the market, with each losing more than half its share of the American search advertiser revenues between 2011 and 2014.

By 2014, search ad revenues at Google, Microsoft, Yahoo! and AOL will account for 92.1 percent of all U.S. search ad revenues -- and 44.3 percent of all U.S. online ad revenues, that's up from just under 90 percent of all search ad revnues and 43 percent of all U.S. online ad revenues in 2011.

Note, eMarketer currently benchmarks its U.S. total search ad spending projections against data from the Interactive Advertising Bureau and PricewaterhouseCoopers, for which the last full year measured was 2010.

Forecasts of revenues at the top search ad-selling companies are based on a meta-analysis of data from a combination of research firms, company reports and trends in the online advertising arena.

Popular posts from this blog

Artificial Intelligence Growth at an Inflection Point

Business technology investment no longer follows a predictable path to growth. The global venture capital (VC) investment in artificial intelligence (AI) was close to its peak in 2021 reaching $22.3 billion, according to the latest worldwide market study by ABI Research. This is just $400 million shy of the historical high of $22.7 billion recorded in 2019. Compared to the $15 billion recorded in 2020, the market made a remarkable recovery, with a 48.5 percent year-on-year growth. Will the future AI marketplace return to stable growth, or will it remain volatile? Artificial Intelligence Market Development "COVID-19 greatly accelerated the speed of digital transformation within the enterprise. Businesses are looking for solutions to work processes automation, customer care, due diligence, transcription and translation, and sales and marketing enablement tools," said Lian Jye Su, research director at ABI Research . At the same time, COVID-19 led to the Great Resignation of 2021

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th