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JupiterResearch study finds search market highly concentrated

Published on .

Feb. 23, 2005

New York—The search market in the U.S. is highly concentrated, with four industries contributing to the bulk of search revenue, according to a new report by JupiterResearch.

The report, "Vertical Search: Early Marketers Will Reap Rewards of Low Pricing," found that retail, financial services, media and travel accounted for 79% of the $2.6 billion spent on paid search in 2004. Jupiter predicts that rapidly rising keyword prices for broad-based search will stabilize, and marketers will take advantage of the opportunities offered by vertical search.

The report also projects that the search market will develop much the way traditional media markets have developed in the U.S., with broad-based search engines spawning vertical search engines dedicated to specific categories.

—Kate Maddox

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