Search ads to give way to video

15 June 2007

Although search advertising will continue to have a major impact, its market share is likely to diminish, according to intelligence and advisory firm IDC.

The Massachusetts based firm argued that the market share for internet advertising will see its market share reduced from 40 per cent in 2006 to 32 per cent in only four years time, 2011.

This would be due to the growing popularity of video advertising.

IDC expects overall revenue from internet advertising to still grow by about $15 billion in that same period of time, or a compound annual growth rate (CAGR) of 13.5 per cent.

It also projected that this venue of advertising will continue to lead all others, even if its market share declines.

But as broadband market penetration increases and consumers get faster connections, IDC argues that video advertising will get increasing attention from companies.

This could affect the revenue streams for companies like Google, which relies on its search engine advertising for 99 per cent of its revenues.

Category: Natural search, Online marketing, Paid search