The Search Engines Industry is always changing. In the past couple years, the Search Engines industry has become the most innovative sector and is shaping the digital advertising world as we know it. The infographic provides a snapshot of our current Search Engines landscape and where it is heading next.

1. The Changing Landscape of
Search Engines
The Search Engines industry has grown so much in the past
couple years that it has cemented itself as one of the most
innovative industries in the United States. Here is a snapshot of
the Search Engines Industry and where it’s heading next.
Key Statistics Snapshot
Revenue
$22.4bn
Annual Growth 2009-2014
7.3%
Annual Growth 2014-2019
7.3%
Profit
$3.4bn
Wages
$3.8bn
Market Share
Yahoo! 7.7%
75.2%
11.8%
Total Revenue $22.4bn
google
Google oers paid-inclusion ad space for three
specic vertical searches: ights, hotels and
nancial products.
98.9% Paid Ad Placement
Consumer spending % of services
conducted online
Demand from internet
publishing and broadcasting
Major Market Segmentation
Yahoo!
products
1.1% Paid Website Inclusion
Key External Drivers
# of mobile internet
connections
Total advertising
expenditure
Computing
Products
Leisure
Travel
Telcom
Competitive landscape
google
The Top Three Search Engines Accounted for 94.7% of revenue
Average industry
prot is estimated at 18.3%of revenue.
Google’s margins are estimated
to have been at least 24.0% of revenue
for the duration of the ve-year period.
Search Industry Revenue Expected
to Grow at an annualized rate of
Industry Revenue is Growing Faster than US GDP,
which is projected to increase at an annualized
rate of 2.1% during the same period.
In 2009, Yahoo! and Microsoft signed a 10-year
agreement that replaced Yahoo!’s search and
ad-serving technologies with Microsoft’s.
In exchange, Yahoo! will receive 88% of the resulting
ad revenue through 2015.
google
bing
bing
bing
These ads are marked as advertisement and
are usually paid for under the pay-per-click
model.
Paid Ad Placement will continue to be the
most prominent form of search engine
advertising over the next ve years as
Google AdWords continues to increase in
prominence.
Search Engine Revenue ($ million)
As such, competition in the search industry is quickly evolving into a
battle between Google and Microsoft.
Other
Retail
Financial
Services
Automative
Advertisers
Consumer
Packaged
Goods
Total $22.4 billion
why advertise on search engines
Adverisers then paid a fee if the user clicks on the ad.
Search trac organic results receive
vs 82%
As such, companies have directed
signicant portions of their budgets
toward advertising on search engines.
7.5%
from 2008 to 2018
Search trac ads receive
20%
39.0%
of search engine users believe that
companies showing up in the top
search results are the leaders in their
eld.
of internet advertising
expenditures will be
spent on search engine
advertising in 2014.
44%
21%
24%
7%
6%
8%
9%
12%
13%
Search engines derive most of their revenue by delivering ads to
users based on the search term entered.
AD
Under this business model, advertisers create ads targeted to specic keyword
queries, and the search engine determines which ads to present based on an
advertiser’s oering price and the ad’s popularity.
Siteber oers SEO and SEM services
that will help your business rank high
on search engines and optimize your
PPC marketing eort to maximize the
ROI of your marketing budget.
Copyright © 2014 by Siteber.com. All rights reserved.
Sources
IBISWorld Industry Report 51913a, Search Engines in the US
http://clients1.ibisworld.com.remote.baruch.cuny.edu/reports/us/industry/default.aspx?entid=1982