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Yahoo, Google to Get Majority of SEM Dollars

Google and Yahoo have, are and will get the majority of search engine marketing dollars spent, reports eMarketer.

The report forecasts the two giants reaping 90 percent of all search engine marketing spending in 2007. That sounds like bad news for other players in the market, but for advertisers on other search engines it could be good news. That's because fewer competitors means less clutter and better keyword value.

Search marketing dollars have remained more or less level as a percentage of overall ad spending since 2004, growing only slightly from 40 percent to 42.5 percent in 2006. That level trend is expected to continue, reaching on 44.3 percent of all online spending in 2011.

While the percentage is relatively constant, the amount of spending is growing tremendously, from just $108.5 million in 2000 to $6.97 billion in 2006. That's forecast to hit $16.151 billion in 2011.

Budgets of companies just entering the search marketing field in the last few years are expected to boost their budgets in the coming years as they learn the ropes and optimize their buying. Much of that is newly allocated money and not funds shifted from other programs.

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