eMarkter has released a report that predicts paid search advertising spending will hit $10 billion by 2009.
The internet research company forecasts that U.S. paid search ad spending in 2006 will grow by 26.2 percent, which is less than last year's 33.2 gain.
eMarketer's David Hallerman, senior analyst and author of the new report, finds the slow growth rate expected. "As this market matures, the search engines will need to refine and improve their products, which will create greater opportunities for search marketers to unearth more effective niches," says Hallerman.
Another finding of the report predicts that by 2010, local search ad spending will make up nearly 20 percent of all paid search spending.
"Such maturity will include more vertical search for better targeting, and a sharp rise in local search, as both users and advertisers increasingly realize that the internet is the best place to make contact with any kind or size of business," adds Hallerman.