Search advertising demand outstrips supply
19 July 2004
The demand for search advertising is growing far in excess of available supply, according to a new survey by Internet research firm Nielsen/NetRatings.
According to NetRatings, online users conducted 1.2 billion searches in May, a year-over-year increase of 30 per cent. In addition, roughly 85 per cent of Internet users now rely on search sites to navigate the Web, according to the report.
Despite the apparently positive nature of the trend, especially for the largest web search engines such as Yahoo and Google, the report's analysts suggest that it could have far reaching implications for the future of search advertising.
Quoted by the New York Times, the report's author, Kenneth Cassar, said: "In the long term, we'll hit a wall where a lot of the search buys that make sense today won't make sense anymore because prices will have risen so high."
"So for the search engines to grow their revenues, they'll have to increase supply," Mr Cassar said.
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