Industry News

Paid search market to triple

Average cost per click to increase in next 5 years
Published on Aug 10, 2004

Spending on search engine marketing will nearly triple by 2009, according to JupiterResearch, a division of Jupitermedia Corp. The forecast, released Monday, expects the market for paid search to grow 189 percent from $1.9 billion in 2003 to $5.5 billion in 2009. The use of pay-per-click services like Overture and Google's AdWords program has exploded in the past year. Many individual real estate agents and brokerages use paid search to advertise their Web sites to online home shoppers. The sharp rise in the cost-per-click of paid search and the increase in paid clicks will drive this market. The company expects the average click price to jump to 47 cents in 2009, a 62 percent increase from 29 cents in 2003. As prices rise, the return-on-investment from search marketing has started to fall. Search marketers can still achieve a positive investment return, but only through an increased focus on measurement and more intelligent bidding. A JupiterResearch executive survey found th...

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