High-powered engines: Advertising demand will increase, benefiting the growing industry

Over the five years to 2018, industry revenue is expected to grow. While most search engines are entirely dependent on advertising revenue, this industry emerged from the downturn relatively unscathed, as operators were able to attract hesitant advertisers with the wide reach and visibility that industry websites provide. As consumer spending rebounded and advertising expenditure increased, advertisers that had scaled back their search engine marketing campaigns have reinvested heavily over the past five years. Over the five years to 2023, industry revenue is expected to grow further. Advertisers are expected to increasingly turn to search engine marketing because of its cost effectiveness and efficiency advantages over traditional media...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • As consumer spending and advertising expenditure increased, advertisers recognized the efficacy of search advertising
  • Search engines derive most of their revenue by delivering ads to users
  • Search engines will increasingly cooperate with social networks
  • Industry Report - Industry SWOT Analysis Chapter

    The Search Engines industry is in the growth stage of its economic life cycle; this stage is characterized by a rapidly changing technological landscape and growing product acceptance from downstream markets. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to increase at an annualized rate of 10.7% over the 10 years to 2023. In contrast, US GDP is projected to grow at an annualized rate of 2.2% in the same period. Typically, an industry is considered to be in the growth phase of its life cycle when industry development exceeds that of the overall economy over the 10-year period...purchase to read more.

    Additional Insights for the Search Engines Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Search Engines Industry are

  • Quick adoption of new technology
  • Strong branding
  • A highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Number of mobile internet connections and Consumer spending in the Search Engines industry impact industry performance..

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    What's in this report

    What is the Search Engines Industry?

    This industry includes enterprises that operate search engines and other types of search-based websites that display advertisements. These search engines typically provide search services for free and earn income when a user clicks on an advertising link, known as a "paid click." Websites may attract users to their search engines by offering a range of additional free services, such as e-mail, news, social networking, entertainment and other information.

    Industry Products
  • Paid placement: brand awareness
  • Paid placement: online sales
  • Paid placement: generate leads
  • Paid placement: drive traffic
  • Paid inclusion and other
  • Industry Activities
  • Providing internet search capabilities
  • Providing internet image search capabilities
  • Providing web-based applications (e.g. e-mail and maps)
  • Distributing and selling online text advertisements
  • Distributing and selling online banner advertisements
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of mobile internet connections
  • Consumer spending
  • Percentage of services conducted online
  • Total advertising expenditure
  • Demand from internet publishing and broadcasting

  • Current Performance
  • Growing advertising opportunities
  • Major player dominance
  • Chart: Revenue Growth

  • Industry Outlook
  • Social integration
  • Mobile searching
  • Emerging applications
  • Table: Search Engines Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Search Engines Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Advertising Agencies
  • Consumers

  • Key Selling Industries
  • Internet Publishing and Broadcasting
  • Internet Service Providers

  • Products & Services
  • Paid placement: generate leads
  • Paid placement: online sales
  • Paid placement: drive traffic
  • Paid placement: brand awareness
  • Paid inclusion and other
  • Chart: Search Engines Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Retail
  • Financial services
  • Automotive advertisers
  • Telecom
  • Leisure travel
  • Consumer electronics and computers
  • Consumer packaged goods
  • Chart: Major Market Segmentation for the Search Engines Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWages and depreciationMarketingOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Search Engines

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Search Engines Industry

  • Industry Globalization
    Alphabet Inc., Microsoft Corporation,
  • Table: Alphabet Inc. - financial performance
  • Table: Microsoft Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Search Engines Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Search Engines Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of mobile internet connections (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Click Fraud
  • Occurs when a person or automated computer program with no actual interest in an advertisement clicks on an ad for the purpose of charging that advertiser for the click.
  • Click-Through Rate
  • A common productivity metric used for online advertising, the click-through rate is used in many search engine pricing algorithms. CTR measures the fraction of users that click an ad after viewing it.
  • Cost Per Click
  • One of the main pricing models used for online advertising. With cost per click, advertisers are charged for every click their ad receives.
  • Keyword Queries
  • Any string of text entered by a user into a search engine. The search engine returns results that are related to the query.
  • Vertical Search
  • A search that specializes in a specific kind of online content (e.g. travel or health).
  • What Our Customers Say

    Why buy this report?

    The Search Engines industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Search Engines:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Search Engines market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Search Engines, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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