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eMarketer: Google Revenue to Exceed $10 Billion in 2007

eMarketer: Google Revenue to Exceed $10 Billion in 2007

A New eMarketer Report Analyzes Google's Search Marketing Business

MARCH 20, 2006 -- NEW YORK, NY Google's worldwide gross revenue will total $11.8 billion in 2007, up from an estimated $9.3 billion in 2006, according to a new report from Internet research firm, eMarketer.
Search Marketing: Players and Problems presents an in-depth examination of the paid search advertising business and looks at prospects for Google, the sector's driving force. The report details eMarketer's projection that Google will account for more than 57% of all US spending on paid search advertising in 2006, as well as predicting Google's total revenue this year and next in the context of eMarketer's expectations for the whole industry.

Laptop Battery The search marketing industry, including Google's own business, faces a number of constraints. David Hallerman, eMarketer senior analyst and author of Search Marketing: Players and Problems notes, "with its revenue stream essentially flowing from this single source, Google will increasingly require alternative channels to maintain its spectacular revenue growth. Marketers might very well be the beneficiaries of these alternatives, especially when it comes to still-to-be-realized potential growth areas such as local search, video marketing and classified ads."

( JWa) ( JWb) announced today that revenue for fiscal year 2007 of $1.2 billion increased 18% from $1.0 billion in the previous year, including revenue from Blackwell Publishing Ltd., which Wiley acquired on February 2, 2007. Excluding the acquisition, Wiley's revenue grew 8% to $1.1 billion, which is a record high, or 7% excluding foreign exchange.

Thinkpad The report also describes how paid search advertising, which will continue growing for several years, is constrained by the threat of click fraud, consumer privacy concerns and the sheer complexity of creating and managing a successful campaign.

For fiscal year 2006, Citrix reported annual revenues of $1.134 billion, compared to $909 million in 2005, a 25% increase. For fiscal year 2007, the company expects net revenues to be around $1.31 billion. For the first quarter of 2007, Citrix reported revenues of $308 million, compared to $260 million in the first quarter of 2006, an 18% revenue growth.

Microsoft Looking beyond 2007, Mr Hallerman says "No doubt about it all is not rosy in the search business...concerns about click fraud and privacy are two sticking points that will potentially chip away at, if not halt, the growth of search engine marketing."

"The 2006 Inc. 500, as revealed in the September issue of Inc., reported the most robust bunch of companies the magazine has ever compiled, with aggregate revenue of $19.7 billion, up from $16.5 billion last year and $12.9 billion in 2000. The two largest companies on this year's Inc. - No. 170 Western Refining ($3.4 billion in revenue) and No. 376 Newegg.com ($1.26 billion) - and the third and fourth companies in Inc. dollar mark."

Laptop Computers Search Marketing: Players and Problems presents a range of exclusive eMarketer forecasts, including:

Allstate Insurance Company of Canada, serving the needs of Canadians for over 50 years, is one of the nation's leading providers of personal home and automobile insurance products. It operates through its network of 450 personal agent advisors, Allstate and www.allstate.ca. Allstate Canada is a subsidiary of The Allstate Corporation ( ALL), one of the world's largest insurance organizations, with global assets of over $US104 billion and revenues exceeding $US 29 billion.

Laptop Computer 57.2%: Google's share of total US paid search ad spending in 2006, up from 32.9% in 2004.
27.0%: Yahoo!'s share of total US paid search ad spending in 2006, up only 4 percentage points since 2004.
144.5 million: the number of US search engine users in 2006, rising to 166.2 million by 2010.
50.5%: share of total US population (age 3+) that use search engines in 2006; will reach 56.1% in 2010.

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Desktop Computer The report also answers these key questions:

Notebooks Why is Google so dominant among search engines (and will that continue)?
Are more individuals searching online (and how can marketers reach them)?
How should users' shopping behavior affect search marketers?
Is click fraud as big a problem as some reports make it out to be?
When is privacy a legitimate concern for search engines and marketers?
And many more...

Lenovo For more information on eMarketer's new report Search Marketing: Players and Problems: http://www.emarketer.com/Report.aspx?search_marketing_apr06

Hard Drive About eMarketer

Travelstar EMarketer is "the First Place to Look" for market research information related to e-business, online marketing and emerging technologies. eMarketer aggregates and analyzes e-business research from over 1,700 sources and brings it together in a suite of services offering customers the most comprehensive compilation of up-to-date e-business and online marketing statistics in the world. Visit eMarketer for more information.

Gateway Source: eMarketer

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