Is Google an online monster? eMarketer estimates that over $8.6 billion was spent on search engine advertising in 2007.

”The spectacular gains for
US search advertising spending over 10 years, rising from less than $300
million in 2001 to almost $16.6 billion in 2011, represent a rare phenomenon in
marketing—namely, considerable customer satisfaction,” says David Hallerman,
eMarketer Senior Analyst and author of the new report, Search Engine Marketing: User and Spending Trends, “considerable customer satisfaction.”

In a Harris Interactive poll, 84% of respondents cited search engines for good customer service, topped only by supermarkets.

No wonder usage is growing.

“At least 155 million people in the US used search engines in
2007,” says Mr. Hallerman. “That number will rise by 25 million in
2011.”

Search ad spending is up, too

eMarketer estimates that US search advertising spending grew almost 27% last year.

All of the eight researchers eMarketer surveyed project continued
growth in spending. However, all but one, Forrester, see the growth
rate slowly declining.

For now, though, one company is reaping an overwhelming share
of the benefits of both customer satisfaction and growth in the
industry.

"Google dominates the market," says Mr. Hallerman. “It draws
far more search users and search requests—and therefore search ad
revenues—than all its rivals put together.”

eMarketer estimates that Google raked in 75% of US paid search
advertising in 2007, up from 60% in 2006. Number two Yahoo! collected a
9% share, and everyone else split 16% of the pie.

”That’s still a lot,” says Mr. Hallerman. “With over $8.6
billion going to search engine advertising in 2007, that 16% stake
equaled nearly $1.4 billion. And with search spending projected to
nearly double in 2011, even a small slice of the pie represents
significant revenue.”

Via eMarketer

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