Search Engine Ads: The new hot spot

A national study of advertisers by Outsell, Inc., has predicted that in 2007, spending on search engine ads will increase by 39 percent. This is the fastest growth of any online advertising method. Companies will increase online spending by 18 percent, and all advertising in the U.S. will grow 5.8 percent.

Print advertising, while still holding the largest portion of ad dollars, is losing share to the growing area of online ads. Click fraud has caused 49 percent of advertisers to reduce or plan to reduce their pay-per-click spending. However, it is only expected to fall by one percent in 2007. Advertisers’ use of cost per action ads online will increase by 8 percent, and online sponsorships will rise 12 percent.

These statistics further prove that the online medium is where advertisers should be focusing if they want to beat the competition. As with everything, there must be a balance so that this method of advertising doesn't become overused to the point where it is no longer effective.