A new report has been released that predicts paid search advertising will shrink as video ads gain prominence, reports ClickZ.
The report comes from IDC Internet and predicts Internet advertising spending will reach $31.3 billion in 2011, almost double what it is now ($16.9 billion).
While search will remain the dominant outlet for online ad spending throughout that period, its share of spending is expected to drop from 40 percent in 2006 to 32 percent in 2011. Actual dollars spent on search will continue to rise, however.
The shift away from search could impact the fortunes of Google and Yahoo. For its part, Google seems to be making moves to counter that drop-off with its introduction of video ad unit options for purchase. Its acquisition of YouTube also positions it to reap benefits in increased video ad spending.
