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BizReport : Search Marketing : June 15, 2007

Search advertising threatened by video

New data from research firm IDC predicts search advertising will continue to grow in terms of “absolute spend”, but that emerging advertising formats, such as video, will grow more quickly.

by Helen Leggatt

idc%20logo.gifAccording to IDC’s report, although search advertising will stay in number 1 position, when it comes to online advertising spend, its market share is set to decline. In 2006, search advertising accounted for 40 percent of online ad dollars, but IDC forecast this will fall to 32 percent in 2011. Meanwhile, video advertising will continue to grow.

"Broadband video commercials will experience their breakthrough in the coming years. This will create tremendous opportunities, but also threats, for old and new media companies. At the same time, search advertising will lose market share, which may pose a strategic challenge for Google, the Internet advertising market leader," said Karsten Weide, program director, Digital Marketplace: New Media and Entertainment at IDC.

Revenue from internet advertising in 2006 amounted to $16.9 billion. IDC forecasts that this will have almost doubled by 2011 at around $31.3 billion.

Tags: IDC, search advertising, video advertising

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