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Prediction: Online Ads Stay Search-Oriented

Media Week reports that despite the many proclamations about the Internet becoming the new go-to outlet for brand advertisers to execute splashy, multimedia ad campaigns, search advertising will continue to command the lion's share of online ad revenue into the next decade, according to Jupiter Research.

Jupiter says that online ad spending will enjoy robust growth across the board over the next five years, reaching $25.9 billion by 2011, representing nearly 9 percent of the total U.S. advertising market. And during the next five years search spending will see its share of online ad dollars increase from 41 percent this year to 43 percent in 2011.

That assessment runs contradictory to several recent industry predictions, which saw search's exponential growth eventually cooling off. By most accounts search advertising has accounted for roughly 40 percent of the overall online ad market over the last few years, and while the market has remained hot many industry prognosticators have expected growth in display advertising -- such as banners, buttons and streaming video -- to outpace search in growth over the next few years.

Not so says Jupiter, which claims that "the primary driver in the growth of online advertising will continue to be search advertising -- search will continue to constitute a larger percentage of online revenue through 2011."

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