Search advertising spending has grown explosively over the past decade with one company reaping the benefits far more than any other - Google (NASDAQ: GOOG). It's been estimated by eMarketer that 75% of search advertising spending lines Google's pockets (up from 60% in 2006). In 2007, $8.6 billion was spent on search marketing. Let's see. 75% of $8.6 billion is $6.45 billion. No wonder Google thinks they're all that. And by the way, those numbers are strictly for U.S. search advertising spending.
In 2007, Yahoo! (NASDAQ: YHOO) came in second place earning just 9% of the $8.6 billion spent on search advertising, and the remaining 16% (or $1.4 billion) was divided among all the other search advertising players.
Projections show that search advertising spending is expected to double by 2011. Sounds like a good time to buy some stock in one or more of these companies.
On a separate note, it is amazing to consider the level of growth in search advertising that we've seen over the past decade. In 2001, $300 million was spent on search advertising, and just six years later in 2007, $8.6 billion was spent. In four more years (2011), that spending is expected to double to $16.6 billion. Those are incredible statistics that clearly demonstrate the importance of search advertising to a marketing plan and the importance of hiring knowledgeable employees who are dedicated to optimizing your search advertising initiatives.
What do you think about these statistics? Should Google have so much power? What about Yahoo?
(slightly off topic)
I do wish graphs that use both historic and predictive data would change the color of bars they use, or some other visual change.
While I don't doubt an increase in search advertising, there have been other cases, like mobile advertising, that haven't grown anywhere near the 'estimated' growth.
Posted by: Brian Oates | January 31, 2008 8:12 AM | Permalink to Comment