Friday, September 19, 2008

Google's Market Share

Google's U.S. Market Share

The Core Search Report from comScore measures competitive share of online searches. In July 2008, by this measure, Google had 62% share of U.S. searches. Google's relative market share was 3.0 times that of Yahoo!, Google's closest competitor.

IDC tracks online advertising spending. IDC's report for 2007 indicates that Google had 24% market share of online advertising dollars in 2007. Another report from IDC gives Google's market share of U.S. online advertising as 32.5%, representing a relative market share of 2.0 (twice that of Yahoo!, Google's closest competitor by this metric as well).

Google's European Market Share

European market share (of searches) is also available from comScore. These statistics show that Google has a dominant market position: Google's 79% market share is roughly 25 times the size of its nearest competitor, eBay. These results are supported by individual country data sources. For example, Hitwise indicates that Google has 87% market share of search in the UK, the largest online advertising market in Europe.

A detailed study by IAB and PriceWaterhouseCoopers found that search comprised roughly 45% of the overall European online advertising market in 2006. This would imply Google had 45% * 80% = roughly 36% share of European online advertising dollars. (Assuming the 45% proportion continued through 2008, that Google's advertising revenues are entirely driven by search and that Google monetized its searches as effectively as its competitors did.)

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