Home > News > Jupiter Predicts Paid Search Could Slow Down • Bookmark   • Newsletters   • Register Search Options


Jupiter Predicts Paid Search Could Slow Down

Jupiter Predicts Paid Search Could Slow Down
Get XBIZ News
Aug 9, 2004 3:49 PM PDT    Text size: 
DARIEN, Conn. — JupiterResearch has issued a new report that predicts paid search activity will decelerate. By 2009, the rate of growth of web advertising for paid search results will be only about one-sixth of what it was in 2003, according to the forecast’s projections.

JupiterResearch states that in 2004, online advertisers will spend $2.6 billion on paid search. This figure will more than double by 2009, when $5.5 billion is expected to be spent on paid search services. However, the growth rate for paid search will sharply decline within five years, JupiterResearch predicts.

Paid search delivers targeted ads that are linked to the keywords used in Internet searches on search engines such as Yahoo and Google. The Reuters news agency reports that the JupiterResearch forecasts cast a shadow over Google as it prepares to issue its Initial Public Offering. The IPO could reportedly yield more than $3 billion.

However, Google – which is reportedly valued at more than $30 billion – earns a substantial portion of its revenue from paid searches. Since 2002, Google has posted double-digit sales growth in every quarter. However, in the quarter that ended in June 2004, Google’s revenue grew by only seven percent.

JupiterResearch analyst Nate Elliott told Reuters, “Google clearly thinks that they need to diversify," adding that Google has ventured into other fields such as Froogle, its comparison shopping site, Gmail electronic mail service and local search advertising.

According to JupiterResearch, local search spending will grow from $502 million in 2004 to $879 million in 2009. Local marketers – from doctors to eateries – use local search.

The JupiterResearch report also projected that total online ad spending, including display ads like banners and search, will almost double to $16.1 billion by 2009. In addition, it forecasts that the increase in search prices per click will also slow down.

JupiterResearch is a division of Jupitermedia. According to its website, Jupitermedia is a leading global provider of original information, images, research and events for information technology, business and creative professionals.

In related news, on Aug. 9 Google again boosted the number of shares it plans to sell in its IPO, according to Reuters. It will issue 2.7 million shares to Yahoo to settle a lawsuit over technology used to display ads.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


E-Stim Basics: Selling Customers on Powerboxes as Pleasure Tools

Electrosex is a commonly misunderstood pleasure practice for good reason: Most of us have negative associations with electricity; maybe we’ve been shocked after rubbing our feet across a carpeted... More »

Search Oftentimes Is Left to Chance

Adult content is frowned upon in search, whether in paid, organic or social. With the big algo updates from the past few years, Google has cleaned up search, trying to get rid of spammy and low-quality... More »

Five Tips to Generate Repeat Business

A $50 sale is great. But what if you could get that same $50 sale to come back four times in the next few months? Here are some ideas how to achieve that. 1) On your receipts, you should have an option... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.


XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA

XBIZ Awards 2017

Jan 12 - Jan 12
Los Angeles, CA

ANME Founders Show

Jan 14 - Jan 15
Los Angeles Marriott Burbank Airport

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!