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November 4, 2016

Search Ad Spending

Many have known that search advertising is another method of placing internet advertisements on web sites that are results from search engine queries. In the past few years, it is the most popular online advertising that has ever made. Search advertisement is oftentimes correlated with the word keywords. These keywords are the ones that online users put on the search engine. Many customers around the globe use this to immediately identify and compare a product from other products before making a decision to purchase it. In other words, a consumer tends to type a keyword in search of a certain company, product or service to assure their better quality than the other.
Total Expenditure of Search Advertising

The graph below tells the search advertising expenditure worldwide in 2014, 2015 and also estimated the amount that will spend in the year 2016.

search ad spending - Search Ad Spending

The statistics show that the trend is increasing. In 2014, businessmen have spent 67.05 U.S. billion dollars. In 2015, there is an increase of 10.26 U.S. billion dollars which means that the total expenditure is 77.31 U.S. billion dollars. At the end of this year 2016, the predicted accumulated amount that marketers around the world will spend in search advertising is about 86.03 U.S. billion dollars. It only increases by 8.72 U.S. dollars comparing it from the last year’s expenditure.

Search Advertising vs. Display Advertising

However, due to the recently invented digital stuffs, many businessmen have investing their money on digital advertising. One of its reason is because when more people are into digital so it is just an obvious action that marketers will go digital as well. That is why it has been predicted and calculated that digital display advertisements will tend to surpass search advertisements spending in 2016. The graph below shows the total expenditure of the display and search advertising in the United States of America. It can be seen from the figure that in the year 2014 and 2015, search advertising is most used than the display advertising. But also in the year 2015, the only difference between the two is only just 0.38 U.S. billion dollars. In year 2016, this is the time where digital advertising truly exceed the search advertising. Though the trend of search advertising is increasing but it increases by a few billion dollars only comparing it to the display advertising. In 2017, the U.S. is expected to spend a total amount of 32.32 U.S. billion dollars for search advertising. It is also expected that in year 2018 they will spent a total of 36.41 U.S. billion dollars and when 2019 will come, the total expenditure for search advertising is predicted to reach 40 U.S. billion dollars.
search ad spending 2 300x154 - Search Ad Spending

Hence, in conclusion, the total expenditure of search advertising is predicted to be increasing. Thus it can be said that some marketers are still using it and believing in its power to persuade and allure people to buy the products or services that have been offered to them. Even though digital advertising will reign popularity, still it cannot be denied that search advertising never loses its power of advertising.

Sources:

http://www.statista.com/statistics/190275/us-online-display-and-search-advertising-forecast-2010-to-2015/

http://www.emarketer.com/Article/US-Digital-Display-Ad-Spending-Surpass-Search-Ad-Spending-2016/1013442

http://www.statista.com/statistics/267056/paid-search-advertising-expenditure-worldwide/

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