Abstract: Sponsored search is a successful business model currently on the Internet. It has become the main income source of search engine companies and has offered great opportunities for advertisers. Search engine, advertiser and user are the three main components in sponsored search. Search engine offers technology and advertisement service, advertiser offers advertisement contents while user views and clicks advertisements. Related technologies of search engine and user behavior have been studied and developed by many researchers. However, advertisers especially the status of advertisers has not been studied well in the area. Based on such situation, we conducted deep analysis on the status of advertisers. Technically, such status is demonstrated by the impression number, the click number and the cost of the advertiser’s advertisements. Then hidden Markov model is utilized in demonstrating such sequential status of advertisers. The focus is on introducing methodologies of machine learning and data mining into advertiser modeling. At the same time, we get high precision when predicting advertiser status with our model, which convinces us that such method is suitable.