Trend: Search is the best way to identify motivated buyers.
When Local Search is implemented on fast cell phones, another avenue opens.
Paid search is expected to generate more than $14 billion globally in 2006, with Google leading in growth and market share, according to a new Piper Jaffray report.
The paid search industry, which generated an estimated $10 billion globally in 2005, is expected to grow 41 percent in 2006, with Google growing its net revenues by more than 58 percent during the year, according to two research notes released this week by Safa Rashtchy, senior research analyst at Piper Jaffray.
"Over the next five years, we estimate the paid search industry will grow at a 37-percent CAGR [compound annual growth rate] to more than $33 billion in 2010, and we expect Google to capture the lion's share of that revenue and grow faster than the market as a whole," Rashtchy wrote in the Google research note.
In the Internet Industry report, Rashtchy predicts that stocks in the Internet sector will bring returns over 20 percent for 2006, exceeding the 12-percent return of 2005. Within the sector, search and online advertising performed best, increasing by 23 percent for the year, and advertising services were up 18 percent.