Industry Analysis & Industry Trends
The Search Engines industry is the perfect example of a concentrated market structure, with just three companies controlling in excess of 90% of the market. Their success is based on the ability to search more efficiently and accurately than any competing search engine, which attracts more users. Search engines that are preferred by the market have a larger user base, which, in turn, attracts advertisers who want to maximise exposure of the products they market. Given that some 95% of industry revenue is generated from advertising and paid clicks, it is evident why the likes of Google, Yahoo and Microsoft dominate the market... purchase to read more
Industry Report - Industry Products Chapter
Search engines perform a dual role: connecting people with information; and connecting marketers with people. It is the latter that generates income for the industry. Advertisers pay to have their advertisements or links appear on certain web pages including search results pages. The more popular a web destination, the greater advertising revenue it can earn. This acts as an incentive to provide useful services like search engines to consumers for free in order to maximise visitors and in turn maximise advertising revenue.
Search engines in particular have been successful in generating huge amounts of advertising revenue, in comparison to other popular online destinations... purchase to read more