JupiterResearch - Paid Search Through 2009

Paid Search Through 2009 Rising Cost Per Click Drives Market, Forces Advertiser Efficiency Vision Report August 6, 2004 Executive Summary Paid search will continue to grow faster than any other sector of online advertising, increasing from $2.6 billion in 2004 to $5.5 billion in 2009. A sharp increase in the average cost-per-click is the primary driver of this market, with incremental growth in the number of searches also driving spending. With a majority of search marketers using unsophisticated bid strategies, improved measurement and increased efficiency will be necessary to maintain an effective return on investment. Key Questions How large is paid search spending in the United States, and how quickly will it grow? How will the declining return on investment from paid search affect search marketers? How large is the market for local search advertising, and what will affect its growth? JupiterResearch - Paid Search Through 2009