Paid Search to Displace Online Display Ads by 2010

Paid search will garner more revenue share than online display advertistments within five years, according to a new market forecast by Jupiter Research. According to a ClickZ article:

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 article goes on to quote Jupiter Research analyst Sapna Satagopan who offers a number of suggestions for search marketers to get ahead of this trend.

In particular, Satagopan recommends that search marketers familiarize themselves and take advanage of the new search advertising programs from Ask Jeeves and MSN. Savvy search marketers will also change their focus from achieving top position to measuring the revenue generated by spending on search ads.

For more detail, see the press release announcing the forecast.

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