the changing landscape of search engines
DESCRIPTION
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.TRANSCRIPT
Revenue
Annual Growth 2009-2014
$22.4bn
7.3%Annual Growth 2014-2019
7.3%
Profit
$3.4bnWages
$3.8bn
Market Share
75.2%
11.8%
7.7%Yahoo!
Yahoo!
98.9% Paid Ad Placement
1.1% Paid Website Inclusion
Key External Drivers
Competitive landscape
# of mobile internet connections
Consumer spending % of services conducted online
Total advertising expenditure
Demand from internet publishing and broadcasting
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.
Total Revenue $22.4bn
The Search Engines industry has grown so much in the past couple years that it has cemented itself as one of the most innovative industries in the United States. Here is a snapshot of the Search Engines Industry and where it’s heading next.
Key Statistics Snapshot
bing
bing
bing
products
These ads are marked as advertisement and are usually paid for under the pay-per-click model.
Google o�ers paid-inclusion ad space for three speci�c vertical searches: �ights, hotels and �nancial products.
Paid Ad Placement will continue to be the most prominent form of search engine advertising over the next �ve years as Google AdWords continues to increase in prominence.
Search Engine Revenue ($ million)
As such, competition in the search industry is quickly evolving into a battle between Google and Microsoft.
Major Market Segmentation
Other
Retail
Financial Services
AutomativeAdvertisers
Telcom
Leisure Travel
Computing Products
ConsumerPackaged Goods
Total $22.4 billion
As such, companies have directed signi�cant portions of their budgets toward advertising on search engines.
why advertise on search engines
Average industrypro�t is estimated at 18.3% of revenue.
Google’s margins are estimatedto have been at least 24.0% of revenuefor the duration of the �ve-year period.
The Top Three Search Engines Accounted for 94.7% of revenue
Industry Revenue is Growing Faster than US GDP, which is projected to increase at an annualized rate of 2.1% during the same period.
7.5%Search Industry Revenue Expected
to Grow at an annualized rate of
from 2008 to 2018
39.0%of search engine users believe thatcompanies 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%
Adverisers then paid a fee if the user clicks on the ad.
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 speci�c keyword queries, and the search engine determines which ads to present based on an advertiser’s o�ering price and the ad’s popularity.
The Changing Landscape of
Search Engines
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SourcesIBISWorld Industry Report 51913a, Search Engines in the US
http://clients1.ibisworld.com.remote.baruch.cuny.edu/reports/us/industry/default.aspx?entid=1982
Search tra�c ads receive
20%
Search tra�c organic results receive
82%vs
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