Rich Media to Beat Paid Search in Growth this Year

Thread Title:
Rich Media's The New Paid Search
Thread Description:

Mediapost are predicting that rich media ads will out strip paid search in terms of growth this year based on a eMarketer report due out later today:

"Paid search advertising took the lion's share of online ad spending in 2004, but eMarketer forecasts rich media advertising will grow more quickly than paid search in 2005," wrote eMarketer Senior Analyst Ben Macklin in the report. "The barriers to rich media advertising, such as bandwidth constraints and ad format limitations, are falling," he wrote.

In fact, eMarketer predicted that U.S. spending on rich media advertising, including interstitials, would leap to around $1.02 billion in 2005, up from $796 million last year. eMarketer forecast that all online ad spending in the United States would reach $11.3 billion in 2005, up from an estimated $9.4 billion last year.

Still, eMarketer expects paid search to show continued strength, with $4.69 billion going to paid search in 2005, compared to $3.93 billion in 2004.

And in the context of the report took a look at the four major "portals" and assessed their outlook for the following year as follows:

  • Yahoo! - Excellent
  • Google - Very good
  • MSN - Very good
  • AOL - Uncertain

Yahoo come out on tops due to growth, aquisitions and content with AOL trailing in at the back - maybe it's time to take old shep out back and put him out of his misery?