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.”