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EMarketer says search spending will be more than expected

Published on .

New York—EMarketer on Monday forecast that paid search advertising spending will grow 40% this year to $5.4 billion, based on the PricewaterhouseCoopers-Interactive Advertising Bureau advertising figures released last week.

That is an increase over eMarketer’s original $4.7 billion prediction.

Senior analyst David Hallerman said reported results from Google and Yahoo! "showed I was being a little too conservative about the Web search advertising those companies have popularized.

EMarketer predicted overall online advertising spending will grow 33.7% this year to $12.9 billion, surpassing 2004’s 32.5% growth to $9.6 billion. In addition to increases driven by search ad spending, increased broadband adoption will continue to drive the interactive advertising market.

—Carol Krol

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