garyp
08-08-2004, 05:21 PM
A New Report from Jupiter: Paid Search Growth May Slow
Source: Reuters
http://news.yahoo.com/news?tmpl=story&u=/nm/20040808/wr_nm/tech_google_advertising_dc_3
A new Internet advertising forecast shows slower growth for paid search listings in the next five years...<snip>
Advertisers will more than double spending on paid search to $5.5 billion in 2009 from $2.6 billion this year, but the annual growth rate will decelerate to 11 percent in 2009 from 65 percent in 2003, according to a report by Jupiter Research, due to be released on Monday.
<snip>
JupiterResearch, a division of Jupitermedia Corp., has forecast total online ad spending, including search and display ads like banners, will nearly double to $16.1 billion by 2009 as consumers devote more time to the Web and new technologies make it easier to create and track campaigns.
<snip>
The rise in search prices per click also will lose steam, growing 26 percent to 36 cents in 2004, then slowing in 2006 to incremental annual growth of 1 cent to 2 cents per click.
Updated: and a news release (http://biz.yahoo.com/bw/040809/95479_1.html) about the report.
As prices rise, the return-on-investment (ROI) from search marketing has started to fall. Search marketers can still achieve a positive ROI, but only through an increased focus on measurement and more intelligent bidding. According to a JupiterResearch executive survey, just one-third of search marketers consider historical effectiveness data or the cost of goods sold when bidding for paid listings. Over half of search marketers use unsophisticated bid strategies or no specific bid strategy at all.
Source: Reuters
http://news.yahoo.com/news?tmpl=story&u=/nm/20040808/wr_nm/tech_google_advertising_dc_3
A new Internet advertising forecast shows slower growth for paid search listings in the next five years...<snip>
Advertisers will more than double spending on paid search to $5.5 billion in 2009 from $2.6 billion this year, but the annual growth rate will decelerate to 11 percent in 2009 from 65 percent in 2003, according to a report by Jupiter Research, due to be released on Monday.
<snip>
JupiterResearch, a division of Jupitermedia Corp., has forecast total online ad spending, including search and display ads like banners, will nearly double to $16.1 billion by 2009 as consumers devote more time to the Web and new technologies make it easier to create and track campaigns.
<snip>
The rise in search prices per click also will lose steam, growing 26 percent to 36 cents in 2004, then slowing in 2006 to incremental annual growth of 1 cent to 2 cents per click.
Updated: and a news release (http://biz.yahoo.com/bw/040809/95479_1.html) about the report.
As prices rise, the return-on-investment (ROI) from search marketing has started to fall. Search marketers can still achieve a positive ROI, but only through an increased focus on measurement and more intelligent bidding. According to a JupiterResearch executive survey, just one-third of search marketers consider historical effectiveness data or the cost of goods sold when bidding for paid listings. Over half of search marketers use unsophisticated bid strategies or no specific bid strategy at all.