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Google’s Share of US Search Revenues Still Growing

Despite 47% growth from Bing in 2010

NEW YORK, NY (March 1, 2011)—Despite rapid gains by Microsoft’s Bing, Google’s share of the $13.59 billion US search advertising market will continue to grow in 2011, according to new estimates by eMarketer.

The company’s share of overall US online search revenues increased to 71.4% last year, as Google’s search revenues reached $8.83 billion in the US. In 2011, eMarketer estimates Google’s US search revenues will grow 15.7% to $10.2 billion, putting the company’s share of overall market revenues above 75% for the year.

Search advertising revenues at Microsoft grew 47.4% to $1.26 billion in 2010, eMarketer estimates. This year, growth rates for the company won’t be quite as high, though eMarketer does expect Microsoft’s US search ad revenues to expand by 16.4% to $1.47 billion by the end of the year.

eMarketer estimates Microsoft’s share of the overall search ad market reached 10.2% in 2010, with the company’s share is expected to inch up slightly to 10.8% in 2011.

“The US paid search market is more and more a two-company game,” said David Hallerman, principal analyst at eMarketer. “And yet there’s no real competition. Even though Bing is gaining revenue, Google’s share is still rising as the combined revenues at Microsoft and Yahoo! continue to fall.”

Meanwhile, eMarketer expects Yahoo!’s share of the US search ad market to decline to 8.1% in 2011, with search revenues reaching $1.1 billion—down 14% from $1.28 billion in 2010.

AOL is expected to earn just $252 million in search revenues in 2011, down 11.5% from $285 million in 2010, according to eMarketer. The company’s share of the overall market revenues is expected to drop to 1.5% this year, compared to 2.3% in 2010.

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Posted on March 1, 2011.