Search companies dealt reality check in eMarketer report

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New York—Google’s worldwide gross revenue will total an estimated $9.3 billion this year, and $11.8 billion in 2007, according to forecasts in a new report by eMarketer, an online research company.

However, the company faces roadblocks to continuing strong growth, including the threat of click fraud, privacy concerns and the complexity of creating and managing campaigns, eMarketer wrote in the report, “Search Marketing: Players and Problems.”

“Concerns about click fraud and privacy are two sticking points that will potentially chip away at, if not halt, the growth of search engine marketing,” said David Hallerman, eMarketer senior analyst and author of the report. “All is not rosy in the search business.”

The report indicated that Google will account for more than 57% of all U.S. spending on paid search advertising this year, while Yahoo!’s share is predicted to total 27.0%.

—Carol Krol

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