30th January 2008
Over $8.6 billion (£4.3 billion) was spent on search advertising last year, according to a new report by eMarketer.
This figure compares to $6.8 billion in 2006 and $5.1 billion the previous year.
David Hallerman, senior analyst at the firm and author of the report, commented: "The spectacular gains for US search advertising spending over ten years, rising from less than $300 million in 2001 to almost $16.6 billion in 2011, represent a rare phenomenon in marketing - namely considerable customer satisfaction."
Mr Hallerman added that at least 155 million Americans used search engines last year, a number which he expects to rise by a further 25 million by 2011.
The firm attributes the figures to high quality customer service, citing a Harris report which revealed the industry is only beaten in the service stakes by supermarkets.
A full 87 per cent of consumers rated search engines' consumer relations as good, compared to 92 per cent for supermarket shops.
Steve King, chief executive officer of ZenithOptimedia, has predicted that online advertising will overtake radio this year.
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