According to eMarketer, a new study from Marketwire, the paid search advertising spending would touch 10 billion mark by 2009. The prediction is in spite of the fact that it went through a slump in the last few years. About US paid search ad spending, eMarketer forecasts that it can grow by 26.2% in 2006. But last year it grew by 33.2%, which states a significant loss of seven percentages. Earlier in the decade “paid search Ad spend” was booming with a triple-figure growth.
Google's chief financial officer, George Reyes was quoted, "Clearly our growth rates are slowing." Earlier it was Google all over. But now there are other players in this game to make it more interesting and tough. Google is the market leader in the search advertising. So, if Google faces some deceleration it will influence other players.
The industry has matured enough to allow this competition. eMarketer's David Hallerman, Senior Analyst and author of the new report Search Marketing I: Spending and Metrics said, "As this market matures, the search engines will need to refine and improve their products, which will create greater opportunities for search marketers to unearth more effective niches."
This would lead to a fierce competition and only the best would survive. Hallerman went on to say, "Such maturity will include more vertical search for better targeting, and a sharp rise in local search, as both users and advertisers increasingly realize that the Internet is the best place to make contact with any kind or size of business."