Searching for an answer: Rising budgets for online advertising are driving revenue growth

The Search Engine industry is highly concentrated, with three companies controlling almost the entire industry, and the largest company accounting for a market share greater than 90%. Industry operators provide web portals that generate and maintain extensive databases of internet addresses. Industry participants generate the majority, if not all, of their revenue from advertising. The technological revolution, which has resulted in more households being connected to the internet, and a boom in e-commerce have made the industry one of the most innovative and successful.Over the past decade, an increase in the percentage of households with internet access has supported revenue growth, while increasing levels of technological literacy have increased demand for industry services. A...read more.

Industry Statistics & Market Size
Revenue
£2.5bn
Annual Growth 13-18
17.1%
Forecast Growth 18-23
Profit
Employment
10,252
Businesses
1,266

Industry Threats & Opportunities

  • Mobile technology and rising budgets for digital advertising are expected to drive growth
  • Smaller operators have exited the industry as they have struggled to compete
  • Uncertain economic conditions could lead to businesses limiting advertising expenditure
  • Industry Report - Industry Locations Chapter

    The intangibility of the industry removes the restrictions of geographic location for enterprises, since industry services are accessible regardless of their physical location. Technology companies tend to cluster in areas with a high density of highly-skilled workers.LondonThe London region is estimated to have the largest proportion of industry establishments, accounting for 36.9% of operators in the current year. The city is a magnet for highly skilled workers, which makes it an attractive location for the technology sector.The South EastThe South East region is estimated to account for 17.1% of industry establishments in the current year. Similar to the London the South East is home to many high-tech industries. The...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

  • Establishment of brand names
  • Having a loyal customer base
  • Company's product is user/consumer friendly
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Percentage of households with internet access 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 covers the operation of search engines and other websites that act as portals to the internet. Typically, these platforms allow users to search through and filter the information available on the internet. Firms generate revenue by selling advertising space or sponsoring search results presented to portal users.

    Industry Products
  • Search ads
  • Display ads
  • Licensing
  • Subscription
  • Industry Activities
  • Providing internet search and filtering services
  • Providing targeted online advertising
  • Offering web-based applications
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Percentage of households with internet access
  • Business profit
  • Total online expenditure
  • Demand from advertising agencies

  • Current Performance
  • Online advertising
  • Industry employment
  • Default dominating
  • Chart: Revenue Growth

  • Industry Outlook
  • Referendum effect
  • Social media
  • Private browsing
  • Mobile takeover
  • 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
  • Clothing Retailing
  • E-Commerce & Online Auctions
  • Insurance Agents & Brokers
  • Advertising Agencies
  • Travel Agencies

  • Key Selling Industries
  • Internet Service Providers
  • Wireless Telecommunications Carriers

  • Products & Services
  • Search ads
  • Display ads
  • Subscription
  • Licensing
  • Chart: Search Engines Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Retailers
  • Financial firms
  • Automotive firms
  • Travel and tourism companies
  • Telecom firms
  • Consumer electronics firms
  • 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
    ProfitWagesPurchasesAdvertising and marketingDepreciation and other costs
  • 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 Ltd,
  • Table: Alphabet Inc - financial performance
  • Table: Microsoft Ltd - 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cookie
  • A small piece of data sent from a website and stored in a user's web browser while a user is looking at a website.
  • Cost Per Impression
  • The amount advertisers pay search engines when their ad is displayed.
  • Cost-Per-Click
  • The amount paid by advertisers to search engines when users click on ads; it is determined via real-time auctions.
  • Traffic Acquisition Cost
  • The amount a search engine pays a host or external website when an ad is displayed on their site.
  • What Our Customers Say

    Why buy this report?

    The Search Engines market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 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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