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Can Google Continue To Give The Competition A Run For Their Money?

search engine marketing, Google, search engine, marketing, advertising, pay per click

We have all sat back and witnessed the boom of the Pay Per Click revolution in the past decade. The paid search ad sector produced a 33.2% gain in spending in 2005. Can these statistics continue to rise?

Internet Research Corporation eMarketer Inc. predicts that paid search ad spending will only increase by 26.2% in the US for 2006, but has projected that it will still reach $10 billion by 2009.

Spectators could see this cool off in growth rates coming and Google is also feeling the impact. Google's Chief Financial Officer, George Reyes commented in February on the decline stating, "clearly our growth rates are slowing" due to the "law of large numbers." (eMarketer) Yes, what goes up must come down.

Yet other issues continue to daunt including the menace of click fraud and consumer privacy concerns. eMarketer's Senior Analyst David Hallerman said, "No doubt about it - all is not rosy in the search business...concerns about click fraud and privacy are two sticking points that will potentially chip away at, if not halt, the growth of search engine marketing." (eMarketer)

The continual rises in percentages of paid search ad revenue year after year have led many to believe that this party can't go on forever. But, it's not over! Search engine marketing is just on the verge of gradually stabilizing over the next few years. Now competition will be under pressure to enhance and sophisticate their products in order to keep paid search ads as a continual driving force in the Internet advertising arena.

Paid search ads are Google's primary source of revenue. Therefore, they will have to come up with options to offset the dilemma they are facing. Does Google have any new tricks up their sleeve?

Yes, they have two major projects in the making.

· Supermarket Sweep - A "virtual supermarket" currently in beta testing. This will be an eventful development due to the fact that Google has always been known as a classified ads service targeted at consumers. Google will now be entering into the ring with retail establishments like Amazon and eBay.

· Ads to appear on Google Local Maps - Allows businesses to buy graphical advertisements. When users search for types of businesses, in addition to the pinpoint that indicates where a shop is located they will see a small graphic icon which when clicked on will show the company logo, address, phone number and comment section. They are marked as sponsored ads which are also placed in text form at the bottom of the search results in the left-hand column. Advertisers are charged for click throughs.

Google is still expected to represent 57% of all paid search ad expending in the US in 2006. Once again prevailing as the great contender in paid search ads and will continue to be a major attraction in world economy expecting to pull in $11.8 billion in 2007 up from the expected $9.3 billion for 2006.

Copyright © 2006 Affiliated Publishing

Published: 2006-04-01
Author: Treci Cauthen

About the author or the publisher
Treci Cauthen: Owner of Affiliated Publishing focused on SEO, health & fitness, travel and creative copywriting. Prior experience in
proofreading, research and data entry/processing. I guarantee prompt, efficient, error proof work and all content is original. I look forward to working with you!

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