Search Engine Adspend To Rise By 26% In 2006
Search engine advertising expenditure is forecast to rise by 26% in 2006, with print predicted to increase at 3.3% and TV at 3.3% and 2.4% respectively.
Total online marketing spend will grow by 19% in 2006, eight times more than TV and radio and six times that of print. Outsell estimates online growth of 20% compound annual growth rate (CAGR) extending into 2008.
Online’s median percent of ad mix is expected to rise to a massive 50% over the coming years, with blog and wireless marketing spend set to enjoy increases of 43% and 19%, respectively.
Despite online’s strong growth, Outsell asserts that old media is “far from dead”, with trade magazines, events and direct mail rated the top three most effective tactics for both branding and lead generation advertising.
The strong performance forecast for search engine advertising in 2006 is confirmed by an earlier study from interactive marketing experts, 24/7 Real Media, predicting the medium to reinvent itself as a lead-generation channel (see Search Engine Marketing To Enjoy Popularity Surge In 2006).
Elsewhere, paid search is also expected to enjoy a healthy 2006, with a recent report from Piper Jaffray predicting the medium to generate more than $14 billion globally over the coming year, enjoying an increase of 41% from the estimated $10 billion that it made in 2005 (see Paid Search To Reach $14 Billion Worldwide In 2006).
