PPC Expected to Make a Comeback

By on January 4, 2011

MediaPost recently published findings from a new study on paid-search (PPC) ad spending by JP Morgan. The analysts expect to see a 20% growth in revenue for 2011. This is great news after years of earnings in decline.

Credit for the boom is given mainly to a rise in international search volume. The United States is expected to see a 12% yearly growth in total search queries, while international market queries will grow by 19% yearly.

Search advertisements are expected to contribute 70% of the total online ad market in the U.S. this year.

Similar reports are also coming in from eMarketer analysts who are projecting a record breaking increase in ad spending that will top $40 billion in 2014. It is said to be recovering more rapidly than the overall economy.

The graphic below shows an overview of the current paid-search market.

Google’s paid-search network encompasses spending on AdWords, publishers’ sites using AdSense, Google custom search, AdSense for Domains, YouTube and other networks.

The JP Morgan report, entitled Nothing But Net: 2011, also references an interesting third-party study performed by Microsoft’s Atlas Solutions. In the study, comparisons were made between clicks on display ads and clicks on search advertisements. Users who clicked on both display ads and search ads convert 22% better than search alone and 400% better than those who only clicked on display ads.

The effectiveness of search ad campaigns is no longer in question. More big brands and small businesses are expected to flock to search and social advertising in 2011.

Do you think we will begin to see good PPC revenue again for parked domain names? It looks promising as search queries continue to rise. Can we count on Google and other networks to be transparent and pass on a fair share of the revenue? Please share your thoughts in the comments area below.

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About Mark Fulton

Mark is the Founder of DotSauce Magazine and a full time web developer, domain investor, SEO and online marketing professional residing in North Carolina, USA. Visit MarkFulton.com for information on freelance website development, SEO and consultation services.