Via Tech Crunch – by Don Reisinger on September 4, 2008
As online advertising spending continues its meteoric rise — the Wall Street Journal is reporting a healthy gain of 20 percent in the second quarter alone — not every form of advertising is enjoying such success. In fact, as economic troubles continue, more and more advertisers are only willing to spend money on search ads and are increasingly ignoring other forms of advertising.
According to eMarketer, search ad spending will reach $10.4 billion this year, more than twice as much as advertisers will spend on display ads. More importantly for Google, search ads will represent 42 percent of all advertising spending, while display ads will account for just 21 percent of all online advertising.
With an economic downturn running amok, Google is quickly becoming one of the few companies that can actually withstand its onslaught. Because search results currently provide the best place for advertisers to spend money and realize a positive ROI, Google’s control of over 60 percent of the search market becomes even more important.
