Search Advertising Forecast to Hit $14.38B in 2011 [Report]

U.S. search advertising could hit $14.38 billion by the end of 2011, an increase of 19.8 percent over 2010. This strong growth will keep paid search as the top online advertising format through 2015, when display advertising is expected to dethrone search, according to new estimates from eMarketer.

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Overall, eMarketer projects online advertising will grow by 20.2 percent and exceed $31 billion this year, up from last year’s $26 billion. Search advertising will account for 45.9 percent of ad dollars, down from 46.1 percent in 2010. 

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Search continued to lead the way in Q1 of 2011, as the IAB reported a record high of $7.3 billion in online advertising, in addition to record online advertising revenues in 2010. 

High inventory, lower pricing, and the rise of Facebook are fueling the growth of display advertising, which includes online video, banner ads, rich media, and sponsorships, eMarketer noted.

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