Search Marketing Still Dominates Online Advertising - eMarketer
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Search Marketing Still Dominates Online Advertising

New eMarketer report documents search trends

January 29, 2008

NEW YORK, NY (January 29, 2008)–If you are covering Yahoo! and Google’s earnings calls this week, what might help is an at-a-glance summary of how advertisers have spent their online and search dollars over the past year and how much they are predicted to spend.

Google still dominates the market, of course, raking in 75% of US paid search advertising in 2007, up from 60% in 2006. Yahoo! at No. 2 collects a mere 9%, with the other search engines splitting the remaining 16%, says David Hallerman, senior analyst, in his new report released today, Search Engine Marketing: User and Spending Trends.

Advertisers spent over $8.6 billion on search in 2007. That figure is expected to nearly double by 2011 to almost $16.6 billion. Yahoo! wields considerable influence in display advertising, which is the second-largest online ad format. In 2007, display ads brought in nearly $5 billion. By 2011, eMarketer predicts display spending will reach over $8 billion.

Paid search reached a 40% share of total US Internet ad spending in 2004. “Since then, and going forward, online advertisers have and will put about the same percentage into search,” Mr. Hallerman says.

But as great as search spending is, its growth is leveling off. After 27.5% increase in 2008, annual growth will subside to around 10% by early next decade.

To receive a copy of the search report, or for a comment on the earnings from Mr. Hallerman, reach out to the media contacts below.

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