U.S. paid online search advertising spending soared to more than $2 billion in 2002, up 123% over $923 million the previous year, according to eMarketer.
Spending is also estimated to grow by $500 million this year and again in 2005, remaining a substantial part of online advertising revenues.
But in order for paid search growth to continue, search sites and portals will have to create products designed and priced to appeal to local advertisers—a vast business segment they have largely bypassed, continued the company’s new Search Engine Marketing report.
In addition, the company predicted further spending growth to come from contextual search, which will deliver additional revenue streams to Web publishers and e-commerce sites.
Network
