Paid search revenues will surpass display advertising revenues by 2010, writes ClickZ, citing a JupiterResearch forecast. Paid search accounted for $4.2 billion, or 34 percent of total online adspend in 2004 and is expected to catch up with display advertising in 2009, with both bringing in around $6.9 billion. By 2010, paid search, including paid listings and paid inclusion, is expected to equal 40 percent of the online ad spend, or $7.5 billion. Cost-per-click is expected to increase from the 2004 average of $.39 to $.58 by 2010.
"While immediate sales is the top goal for a majority of the marketers who use paid search, the benefits of paid search in branding and purchase decision or research processes will become more evident as well," according to Sapna Satagopan, lead analyst on the Jupiter report.
The pace of growth is expected to get boosts from Ask Jeeves's new paid search program and the launch of MSN AdCenter. Satagopan said both paid listings programs would likely take about 12 months from to gain traction and have a significant impact on paid search.
