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	August 6, 2004 Paid Search Through 2009 Rising Cost Per Click Drives Market, Forces Advertiser Efficiency by Nate Elliott with Gary Stein, Zia Daniell Wigder

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Executive Summary

Paid search will continue to grow faster than any other sector of online advertising, increasing from $2.6 billion in 2004 to $5.5 billion in 2009. A sharp increase in the average cost-per-click is the primary driver of this market, with incremental growth in the number of searches also driving spending. With a majority of search marketers using unsophisticated bid strategies, improved measurement and increased efficiency will be necessary to maintain an effective return on investment.

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