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

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year
Read more

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth
Read more

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul
Read more