Global search revenue on the rise: JPMorgan analysts

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Global search revenue is expected to reach $30.5 billion in 2008, up from a previous estimate of 26.2 billion, according to a JPMorgan analyst report released on January 2.

The report, which was written by four analysts including Imran Khan, also estimates that global search revenue will reach $60 billion by 2011.

The report stated that paid search is expected to grow internationally due to a variety of factors, including the use of paid search as a global marketing vehicle, keyword price inflation and increased Web usage. An improvement in click-through rates, which have become more relevant, was another factor.

Looking back on 2007, “paid search actually exceeded our expectations,” the analysts wrote. Entering 2007, the paid search market was expected to grow 39% over 2006. “However, due to better monetization by Google, Yahoo and MSN, as well as volume gains, we now expect global paid search revenues to grow 48% in 2007.”

“We are encouraged by this trend as it demonstrates that the market is less mature than we thought and that search companies have not had to resort to increasing the number of ads on a page,” the analysts said.

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