Search Engine Optimization, Search Engine Marketing and Search Engine Positioning Weekly Free Newsletter, March 11, 2006 edition

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(Continued) The RFS Newsletter, Mar. 11, 2006. Page 2
Microsoft has been around for many years and consumes much of the statistics. Here are the latest numbers: Google is growing much faster than Yahoo. Over the last two years, Google's average employee growth rate has been about 100 percent, while Yahoo's was at 34 percent, and Microsoft's was pegged at 10 percent. If the current growth rates continued, Google would surpass Yahoo's headcount in 2007, and Google would be bigger than Microsoft in 2010. This seems a little too optimistic to be true. It will likely become harder and harder for Google to double its headcount every year. Microsoft grew 80 percent on average in the 1980s (49 percent if you don't consider 1981, when the company more than tripled in size). For the 1990s, its average yearly headcount growth dropped to 24 percent.

In news on Tuesday, eCommerce industry analyst firm eMarketer predicts that paid search advertising will hit $10 billion in three years from now. For 2006, the company expects US paid search ad spending in the US will increase by 26 percent, up seven percentage points less than last year's 33 percent gain. After triple-figure growth rates earlier in 2001 and 2002, slower growth rates will prevail through the rest of the decade, eMarketer said. "Clearly our growth rates are slowing," said Google's chief financial officer, George Reyes, on February 28, 2006, noting that the company's revenue growth is decelerating because of the "law of large numbers."

<<< Pr. page Next: Microsoft launches its beta version of Windows Live Search >>>

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