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Google to dominate search ad market in 2015

Google is looking at another dominant year in the search ad market, with estimated spending to reach £55.12 billion in 2015 according to research firm eMarketer.

Holding a solid 54.7 per cent of the search ad market in 2014, Google will drop 0.2 per cent of the total search ad revenue. This does not mean a decrease in revenue though, going from £26 billion to £30 billion in one year.

The biggest leader this year in search ad revenue is Google’s rival in China, Baidu. In 2015, Baidu will jump to 8.8 per cent of search ad share, from 7.4 per cent last year. This follows even more growth in the advertising industry in China.

Microsoft and Yahoo will take 4.2 and 2.3 per cent respectively. Microsoft has held the same amount last year, while Yahoo drops 0.3 per cent in 2015, due to restructuring efforts shutting down some of Yahoo’s legacy services.

Yahoo’s major acquisition of 2014 for Tumblr - the blogging website - for £740 million might have been a mistake in terms of short term financials. Yahoo is hoping that as Tumblr grows, so will the revenue generated from its users.

Digital ad spending will reach £115 billion this year, with search ads taking up almost half of all advertising online. Mobile app advertising has become a prominent part of digital advertising, but does not make as much ad revenue as normal search ads.

eMarketer projects the search ad market will be spending £88 billion by 2019.