eMarketer estimates in its latest forecast that Google continues to dominate the search advertising market with 74% of total U.S. search ad market share. In 2012, Google was reported earning an estimated $12.79 billion in ad revenues, and is expected to reach $14.39 billion in 2013.
Microsoft earned an estimated 660 million dollars in net U.S. search ad revenues in 2012 and is expected to reach 890 million dollars in 2013, accounting for 4.6% of total U.S. search ad revenues in 2013. Based on an assessment of Microsoft’s decreasing traffic acquisition costs (TAC), eMarketer originally estimated their earnings to reach $1.41 billion in 2012 and $1.84 billion in 2013, but new data shows that despite the decreases in TAC, according to eMarketer, initial costs of acquiring search traffic were far higher than expected. This new information led to the downward revision of Microsoft’s estimated ad revenues.
Yahoo! continues to take second place behind Google in U.S. search ad market share, and is expected to earn $1.27 billion this year, and account for 6.5% of total U.S. search ad revenues.
eMarketer estimates that advertisers will spend almost $19.49 billion on search marketing in 2013, a 12.4% increase over 2012.
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