Online Marketing Strategies from MarketerInsight

One can only conclude that with the anticipated growth of paid search marketing, that the channel must be working. The fact that marketers can easily quantify the return and justify the investment supports the projections.

So on to the numbers…

The paid search marketing industry, which generated an estimated $10 billion globally in 2005, is expected to grow 41 percent in 2006, with Google growing its net revenues by more than 58 percent during the year, according to two research notes released this week by Safa Rashtchy, senior research analyst at Piper Jaffray.

In 05 Google captured an estimated 64% of the paid search market and their anticipated stock price reflects it. Piper Jafffray predicts that stocks in the Internet sector will bring returns over 20 percent for 2006, exceeding the 12-percent return of 2005. Within the sector, search and online advertising performed best, increasing by 23 percent for the year, and advertising services were up 18 percent.

With more marketing dollars being wisely invested online, competition will grow to the point in which effeciencies and margins dictate the price point for conversions.