Saturday, March 19, 2005

Search Marketing To Slow By 2007

Trees don't grow to the sky, although the "street" seems to think so.

From NetImperative Search marketing growth to slow by 2007.

Search engine marketing in Europe is set to increase by 65% this year, with EU1.4bn being spent on sponsored links and site optimisation, according to new research. However, the growth may cool by 2007 as rich media ads begin to dominate the Internet marketing landscape.

Personally I think there's a killer app that comes along that allows brands to bypass search engines. That will have a biggest impact.

The study, entitled “Europe’s Search Engine Marketing Forecast, 2004–2010” from Forrester Research, forecast that by 2010, European marketers will spend almost EU3bn, up from EU856 million in 2004 on search marketing.

However, the research firm found that there are indications that search marketing growth will slow by 2007, as it will be very difficult for some companies to pay for the heavy prices of paid ads against a possible backlash of consumers and clients.

In addition, the rise of rich media ads, enabled by increased residential broadband access, will pull ad spending away from other forms of offline and online advertising, causing the cost of keyword search to increase.

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