SEL: What Growth Will Search Engine Advertising See?

check out the Digging into Search swicki at eurekster.com

Search marketing in the new media era.

September 30, 2004

What Growth Will Search Engine Advertising See?

The Wall Street Journal reports on whether the search engine advertising industry can continue to grow at the same pace.

In her Tuesday report, Thomas Weisel Partners analyst Christa Quarles said search advertising should grow 63% this year. "Google has developed into the 'must-advertise' search location on the Web" and has taken share, she wrote.

But Jupiter Research analyst Nate Elliott sees a more modest pace. After growth of 65% last year, expansion should be 34% in 2004 and 27% next year, he says. "The market is not growing as fast as it used to."

I based my views on Jupiter's growth predictions. We'll see continued growth but when you get to a $5+ billion industry, it's hard to grow at 50% a year.

Andy Beal, vice president of search marketing at ad adviser WebSourced Inc., agrees that the growth spurt of the past 18 months can't continue much beyond the end of the year. Companies are allocating more of their ad budgets online, and prices are up. But growth will slow, he says.

Andy Beal | permalink | +marktd |

...the search industry queries new media