Microsoft’s ad business continues to grow, up 20.8% in 2015

While Microsoft will report its third-quarter earnings tomorrow, a new report from eMarketer details how the company ad revenues rebounded in 2015 after a steep decline in 2014. Microsoft’s net ad revenues worldwide increased from 20.8% in 2015 to reach $2.48 billion, and eMarketer expects the Redmond giant ad revenue to rise from 15% this year to be almost in line with 2012.

This ad revenue growth is helping Microsoft gain market share against competitors Google, Yahoo and Chinese search engine Baidu. Last year, Microsoft earned just 3.3% of net search ad revenues globally, up from 3.0% in 2014. By comparison, Google took 58,9% of global search ad revenues in 2015.

Microsoft's worldwide ad business increased from 20.8% in 2015 to reach $2.48 billions.

Microsoft’s worldwide ad business increased from 20.8% in 2015 to reach $2.48 billion.

In the US market where Microsoft makes the majority of its search revenues, Microsoft claimed 8.4% of US ad revenues in 2015, far behind Google, who enjoyed 74.5% of the ad revenue pie. Even though eMarketer predicts that Google will fall below its 2014 levels in 2018, Microsoft isn’t expected to grow its share above the 9% line over the same period.

eMarketer MS 2015 ad revenue

Microsoft claimed 8.4% of US ad revenues in 2015

Lastly, eMarketer added, that for overall US digital ad revenues (search, display and other formats), Microsoft currently comes in third place after Facebook and will hold that spot through 2018. Stay tuned on Winbeta for our analysis of FY16 Q3 earnings tomorrow.

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