UK Search Engine Marketing Agency
Google and Yahoo to dominate US Paid Search market in 2007
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.
