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Report: Google Continues To Dominate U.S. Search Ad Revenues

March 17, 2017 0 Comments

According to a report by eMarketer, Google’s domination of the U.S. search ad market shows no signs of slowing down.

The report indicates that Google will take 77.8 percent of U.S. search ad revenues this year, while it predicts that the search giant will reach 80 percent by next year. The remaining 20 percent will be split up among Microsoft, Yahoo, Yelp, Amazon, Ask and AOL.

“Google’s dominance in search, especially mobile search, is largely coming from the growing tendency of consumers to turn to their smartphones to look up everything from the details of a product to directions,” explained eMarketer forecasting analyst Monica Peart. “Google and mobile search as a whole will continue to benefit from this behavioral shift.”

The eMarketer report predicts that overall search spending in the U.S. will increase 24 percent over the next three years, from $36.69 billion in 2017 to $45.63 billion in 2019.

In the coming years, Yelp and Amazon are both expected to see the strongest growth rates in search ad revenues. Yelp’s local search app could potentially reach $1 billion in search ad revenues in 2019, up from $730 million this year, although its market share is expected to decline from 6.9 percent to 5.8 percent in 2019. An increasing number of product searches on Amazon could drive its search advertising up from $370 million this year to $600 million in 2019, along with modest market share gains from 1.9 percent last year to 2.2 percent in 2019. Another interesting note is that Amazon and Google were the only companies that gained market share between 2016 and 2017.

Microsoft’s U.S. search ad revenues are expected to grow from $2.79 billion this year to $3.02 billion in 2019, although its market share is expected to dip from 7.6 percent this year to 6.6 percent in 2019. Verizon’s AOL and IAC’s Ask are expected to experience no significant changes in search revenues in the coming period, while Yahoo will rebound from 2016 with slim 1 to 2 percent growth through 2019.

The following chart shows eMarketer’s predictions for net U.S. search ad revenues by company:

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