An article published by eMarketer has some interesting figures on the US paid search advertising market, a market dominated by Google and Yahoo.

Paid Search makes up the largest slice of the US online advertising market, with spending on paid search making up 42.5% of total online advertising spend last year.

Google and Yahoo are growing ever more dominant in this market; taking 73.8% of Paid Search Ad spend in 2006, with the figure predicted to grow to 91.9% this year. Of the two, Google has the larger share, with 58.7% of paid search spend, compared with Yahoo’s 15%.

According to eMarketer Analyst David Hallerman:

“One side effect of this degree of concentration is that it can often make marketing on second-tier search engines often a better value for the money — less competition for keywords means that advertisers get broader reach for fewer ad dollars.”

  • Overall, $6.9bn (£3.4bn) was spent on paid search in the US last year, up from $5.1bn (£2.5bn) 2005.
  • Total paid search advertising spend predicted to reach $8.2bn (£4.1bn) in 2007, and $16.1bn (£8bn) by 2011.
  • By comparison, paid search accounted for 57.8% of the UK’s online ad spend last year, a total of £1.2bn. Google has a 75% share of the UK market.