January 14, 2011

After a slow-down in 2009, paid-for search was back to double-digit growth globally in 2010 to reach $30bn. Google's global market share grew further to 84%. After analyzing global search trends and regional trends, the report focuses on Google, analyzing 2010 performance, new product launches, short-term and long-term revenues prospects, as well as competitors and legal environment.

After a slow-down in 2009, global paid-for search grew double-digit again - by 17% exactly - to reach $30bn. Screen Digest believes that Google's global market share grew to 84% in 2010, despite increased competition from Microsoft and local search engines, whilst traditional competitor Yahoo lost ground.

The report looks specifically at Google, analyzing 2010 performance, short-term and long-term revenues prospects, from search and other formats. Display advertising rose to 8% of Google's total revenues for 2010 and mobile revenues reached 3%. Google TV impact remains uncertain at best. Looking forward, Facebook is the only serious threat to Google dominance of the internet advertising. Legal issues facing Google are also analysed in this report. They are mounting around Google but remain under control as 2010 rulings have mostly come Google's way.

This report is based on Screen Digest modeling of Google financials, as well as Screen Digest/IAB data on search markets, Comscore data on search engine usage and in-depth interviews with international search engine marketing agencies such as Greenlight Search, iProspect and iCrossing.

Highlights:

• Search advertising to grow 17% globally in 2010 to reach $30bn.
• Google's market share grew to 84% of the global search market in 2010.
• Display advertising will rise to 8% of Google's total revenues for 2010.
• Total revenues are expected to grow 23% to $29bn.
• Yahoo search suffered in 2010 during the transition to Microsoft?s Bing technology.
• Looking forward, the rise of Facebook remains the only serious threat to Google dominance of internet advertising.

Tables and charts included:

• Global search market 2009-2011
• Volume of search queries and shares globally
• Share of search queries in the US
• Google annual revenues (2002-2015)
• Google quarterly revenues (2008-2010)
• Google and its peers: market caps by end-2010
• Google timeline (1998-2010)
• Screen Digest survey on third-party brand keyword bidding
• The Google ecosystem
• Google's 2010 Milestones (product launches, M&A, competition environment, legal environment)
• Google dashboard 2010 (revenues by region and ad format)

Pages: 16

Tables & charts: 11

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