Forrester Predicting Strong Growth in Search Marketing

Tuesday, May 03, 2005

Forrester Predicting Strong Growth in Search Marketing

Our buddies over at Forrester Research announced their predictions that online advertising will continue to grow in 2005. According to their predictions, online advertising will grow to $26 billion by 2010--11.6 billion of that coming from search.

Here are some key findings from their report:

Search engine marketing will grow by 33 percent in 2005, reaching $11.6 billion by 2010. Display advertising, which includes traditional banners and sponsorships, will grow at the average rate of 11 percent over the next five years to $8 billion by 2010.
New advertising channels will draw interest and spending from marketers. Sixty-four percent of respondents are interested in advertising on blogs, 57 percent through RSS, and 52 percent on mobile devices, including phones and PDAs.
Marketers are quickly losing confidence in the effectiveness of traditional advertising channels and feel that online channels will become more effective over the next three years. Seventy-eight percent of survey respondents said that they think search engine marketing will be more effective, compared with 53 percent of respondents who said TV advertising would become less effective.
The only nondigital advertising channel to reach the same level of confidence as online channels with marketers is product placement — only 8 percent of respondents believe that product placement will become less effective over the next three years.

Access to the full report is for paying customers only. Sorry.