Search Ad Expected to Grow – Even in a Recession

01/07/2009

Some search industry analysts predicted that this year would be the first that U.S. search advertising would slow – going beneath 20% for the first time ever. However, this hasn’t proven to be the case.

A new report by eMarketer, a leading trend analyzer of new media, shows a slow but steady increase in U.S. online search advertising. In fact, marketers are expected to turn more to search marketing in these trying economic times.

What they will be doing more of is looking for ways to improve online marketing campaign results. This is one reason online search advertising is expected to grow. This advertising medium allows users to track performance pretty easily – and in real time. Real-time tracking means that advertisers can tweak campaigns for optimal performance – a real advantage over other advertising outlets (e.g., radio, newspapers and TV).

Online Search Advertising Spending: How the Numbers Shake Out

A senior analyst at eMarketer predicts that the U.S. search ad spending growth will slow to about 15% this year. This compares to just over 21% last year, and almost 30% in 2007.

In hard numbers, experts predict that businesses will spend over $12 billion on search advertising in 2009. In 2010, this is expected to jump to almost $14 billion. And, in 2011 a bit more than $15.5 billion. Looking towards the next Olympics in 2012, experts expect this to fuel an economic recovery. In that year, the search advertising ad spend is expected to reach almost $18 billion.

Search advertising is expected to remain the top receiver of online ad dollars, Other methods that can be deemed “sexier” may get more ink in the media (e.g., video ads), but their revenue share doesn’t compare with search. The following explains why.

Why Search Will Continue to Reign Supreme

If a company has a website, search is the number one way to drive traffic to it. When thought of in this light, paid ads and SEO become a necessary fixed cost of doing business, not an excess that can be cut. Search’s connection to consumers is too valuable to even consider doing this. And, that’s why search reigns supreme in Internet marketing.

For more insight visit Internet Marketing Services