Rebecca Lieb from ClickZ has wrote an excellent article named Is Search Shrinking? In her article she discusses some of the recent concern over Google's CFO, George Reyes statement, "Clearly our growth rates are slowing."
Rebecca explains that search as an industry is "maturing" and that we are "moving out of a period of hypergrowth." But the industry is not dead, far from it she says. We have contextual ads, local search market, all the social network applications and much more that is still in its infancy. Search ad growth may be not growing at the exponential numbers like it once was, but it will continue to grow.