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.