May 2007 Search Marketing: Counting Dollars and Clicks

Industry Stats & Data by eMarketer

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Search Marketing: Counting Dollars and Clicks, May 2007

Paid search makes up the largest slice of the US online advertising market, as it has since 2003. With its 42.5% contribution to the online total in 2007, according to eMarketer estimates, paid search spending's share has remained on the 40%-plus plateau since its spectacular rise early in the decade. Projections through 2011 indicate a similar, although no greater, dominance.

That paid search's share is barely growing obscures the enormous sums going to this advertising format. US spending on search advertising will rise by more than $3.2 billion from 2006-2008 alone.

Paid search is currently the key driver of US online advertising as a whole. Spending on paid search in 2008 will exceed the $9.6 billion that was spent on all online advertising in 2004.

The US search market is highly concentrated. One can hardly talk about search without mentioning Google. The bulk of paid search revenues go to just two companies: Google and Yahoo!. Their collective share of search advertising spending will rise from 73.8% in 2006 to over 90% this year.

Without users conducting searches, there wouldn't be anyone to click the ads. It's no wonder then why the competition feels so threatened by Google. All statistics point to Google as the search engine people use the most. Not only is it by far the most-used search engine, but that usage continues to expand.

To find out more about eMarketer’s Search Marketing: Counting Dollars and Clicks Report, click here.

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