The Changing Landscape of Search Engines [infographic]

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The Changing Landscape of Search Engines [infographic]

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. The following infographic is a snapshot of the Search Engines Industry and where it’s heading next.

There are over 3 billions search daily, over 69% of people only click on the first three search results, and only 8% of people click to the 2nd page. If potential customers can not find you when they search for the services they need, they will find your competitors and become their customers. Therefore, to be visible, your website needs to be ranked high on search results.

More importantly, 39% of search engine users believe that companies showing up in the top search results are the leaders in their field, according to a research done by iProspect. Somewhere between 80-90% of customers check online reviews prior to making a purchase, and this number is only to increase. As a result, companies have directed significant amount of their marketing budgets toward search engine marketing. In fact, research showed that 43% of internet advertising spend was for search engine ads in 2013. This amount will only increase as people start to rely on search engines more than ever to find the information and services/products they need.

When you finish with this one, head over to see The Future of Search Engines

[infographic] 

The Changing Lanscape of Search Engines

Now you know the current landscape of Search Engines, head over to see what’s next for Google, Bing and Yahoo: The Future of Search Engines [Infographic]

Overview of Key Statistics in the Search Engine Industry: 

Last year, search engine industry boosted a revenue of $21.5 billion with a profit of $3.9 billion, excluding $3.5 billion in wages. The annual growth rate from 2008 – 2013 was a whopping 8.2% and the predicted annual growth rate from 2013 – 2018 is 7.7%.

In term of market share, Google dominated the industry with a 75.7% share, while yahoo and bing each claims a share of 12.2 % and 7.1% respectively.

Most of the revenue (up to 97%)  in the search engine industry comes from paid ad placement. These ads are marked as advertisement and are usually paid for under the pay-per-click model. The remaining 3% of revenue comes from paid website inclusion.

Related:  SSL is a Ranking Factor Now in Google's Ranking Algorithm

Paid ad placement will continue to be the most prominent form of search engine advertising over the next five years as Google AdWords continues to increase in prominence.

There are several key external drivers that will affect the performance of the industry. These are:

1. the number of mobile internet connections

2. consumer spending

4. the % of services conducted online

5. total advertising expenditure

6. demand from internet publishing and broadcasting

Here are the 8 major market segmentations that made up the total $21.5 billion industry revenue: 

1. Retail 20%

2. Other 20%

3. Financial Services 13%

4. Automotive Advertisers 12%

5. Telcom 11%

6. Leisure Travel 9%

7. Computing Products 8%

8. Consumer Packaged Goods 7%

Competitive Landscape: 

The top three search engines accounted for 95.9% of revenue with Google dominating the industry.

Average industry profit 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 five-year period.

Revenue for the search industry is expected to grow at an annualized rate of 7.5% from 2008 to 2018; this is growing faster than the US GDP.

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.

As such, competition in the Search industry is quickly evolving into a battle between Google and Microsoft’s Bing.

Why Advertise on Search Engines:

Search engines derive most of their revenue by delivering ads to users based on the search term entered.

Under this business model, advertisers create ads targeted to specific keyword queries, and the search engine determines which ads to present based on an advertiser’s offering price and the ad’s popularity.

Advertisers then pay a fee if the user clicks on the ad.

Do you know: 39% of search engine users believe that companies showing up in the top search results are the leaders in their field.

As such, companies have directed significant portions of their budgets toward advertising on search engines.

44% of internet advertising expenditure will be spent on search engine advertising in 2014.

2018-03-01T02:40:09+00:00By |Categories: Digital Marketing, News, SEO|Tags: , |

About the Author:

Cofounder of Siteber: a digital marketing professional with Master of Science in Marketing Analytics, specialize in SEO and Digital Analytics.

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