The Future of Paid Search – Google, Bing & Beyond

THE FUTURE PAID SEARCH OF Paid search has cemented itself as a highly viable, cost effective marketing channel. In 2011, paid search spending is expected to reach $34 billion. In this graphic, we'll briefly Google, Bing & beyond explore paid search-it's current state, where it's going, and how the largest paid search venders (Google & Bing) have divvied up the market. Worldwide, Paid Search is a $34 Billion Industry* *Estimate of worldwide paid search spending for 2011 PAID SEARCH IS BIGGER THAN .. Radio Advertising Outdoor Advertising Cinema Advertising $2.9 billion $29.5 billiont $23.6 billiont Relative sizes of marketing channels. tWorldwide spending estimate for 2011. THE AMOUNT SPENT ON SEARCH MARKETING IS GAINING ON PAID TV ADVERTISING Ad Spending in 2006 Estimated Ad Spending for 2011 Paid Search Paid TV Ads Paid Search Paid TV Ads $13.6 billion $28.9 billion $34.9 billion $43.5 billion 112% spending difference 24% spending difference 250% Since 2006, the amount spent on paid search has increased by 250%. BY 2016, PAID SEARCH IS EXPECTED TO GROW BY 75% TO BECOME A $61.1 BILLION INDUSTRY Google vs. Bing – how do they compare? COMPARING GOOGLE & BING (Quarter 1, 2011) Search Volume Market Share Auto Sector Financial Sector GOOGLE BING GOOGLE BING 77.8% 22.2% 77-7% 22.3% 22.2% of all search volume in the auto sector is generated by Bing, while 77.8% is generated by Google. Retail Sector Travel Sector GOOGLE BING GOOGLE BING 84.8% 15.2% 83.9% 16.1% Paid Search Market Share Click Cost Increase 11% 4% GOOGLE BING 79.1% 20.9% GOOGLE BING (up 6% year over year) (up 197% year over year, due to merger with Yahoo) The average cost per click is up 11% (year over year) for Google, and 4% for Bing. Google receives 79.1% of paid search spending, while Bing receives 20.9%. Return on Investment +10% -12% In Summary BING While Google's undeniably large market share looms above Bing, trends show that Bing is on the rise. If Bing can succeed in expanding their network while keeping click GOOGLE costs down and ROI up relative to Google, they could prove to be a serious paid search contender in the coming years. Bing has an increasing ROI (up 10%), while Google has a decreasing ROI (down 12%). SOURCES OKISSmetrics efrontier.com magnaglobal.com PEOPLE PAY YOU. NOT PAGEVIEWS. KISSmetrics is a powerful web analytics solution that helps you make smarter business decisions. Start your FREE trial at kissmetrics.com/signup