Paid search ads 'speed ahead' of ad industry

19th November 2007

Paid search advertising is increasing at double the speed of the rest of the industry, according to figures from research company Frost and Sullivan.

Reported by the Australian Media, the firm claims paid search ads will reach $416 million (£181 million) in 2007, a 65.5 per cent increase from 2006. It predicts this will continue to grow during 2008 to reach $574 million.

Total online advertising in general is estimated to grow at 30 per cent to reach 1.857 million next year with paid search leading the way, followed by classifieds, general advertising and directories.

"Online directories are up against search engine advertising in share of spending and search engine advertising has captured strong mind share in the marketplace," said Darryl Nelson, digital media research manager for the firm.

Keyword search is also expected to increase from 43 per cent to 48 per cent this year.

The New York Times claims that Google controls between 70 per cent and 80 per cent of the paid search advertising market.