ClickZ reports on a new Jupiter study claiming that within five years, advertisers will spend more on paid search than display advertising.
The category accounted for 34 percent of total online ad spending in 2004, or $4.2 billion in spending. In 2009, paid search will draw even with display advertising, 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....
...The pace of growth is expected to increase due to new players in the search engine space, with immediate boosts from Ask Jeeves' new paid search program and the launch of MSN AdCenter. Satagopan said both Ask Jeeves and MSN AdCenter paid listings programs will take about 12 months from to gain traction and start to significantly impact the paid search....
...Cost-per-click is expected to increase from $.39 back in 2004 to $.58 by 2010. Cost is a major concern to marketers, the study found.
Another reason for the growth -- accountability, undoubtedly. Display ads are great for branding, but if you want *measurable* results, search is the way to go. (And it isn't bad for branding either.)
And although CPC may be rising, it's still far less than print. Just yesterday I spoke with my favorite sales rep at my favorite trade mag, and I was offered three 1/8 page ads -- for $10,000. Do you know how much search engine media that would buy? And how many more high-quality conversions I'd probably see from that $10 K? Please.
As the ClickZ article wraps up:
Forty-two percent of sophisticated marketers plan to increase their search budget next year, said Satagopan, because they are achieving a positive ROI.
I don't like to flatter myself too much, but I'd like to think I'm sophisticated enough to know where my ten grand should be spent!!! (And if I wasn't, Those Who Must Approve My Budget are.)
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