More Firms Finding The Focused Benefits Of Paid Search Ads; New Methods Surfacing; Digital marketing outfit aQuantive says its clients want to reach consumers.(INTERNET & TECHNOLOGY)(Q & A)

Publication: Investor's Business Daily

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COPYRIGHT 2004 Investor's Business Daily, Inc.

Byline: DOUG TSURUOKA

JupiterResearch says spending on paid search marketing will level off in two years as clients seek lower rates by haggling more on price.

Paid search marketing involves advertisers paying a search services provider such as Google to feature products prominently in its results. Advertisers typically bid for the placement they get.

Jupiter predicts advertisers will spend $2.6 billion on paid search this year, up from $1.9 billion in 2003. In 2005, the figure will rise to $3.2 billion, but Jupiter sees just a slight rise in 2006 to $3.8 billion.

Brian McAndrews, head of aQuantive, a Seattle-based digital marketing and tech services firm, says the spending slowdown is no big deal. He says long-term client interest in search ads remains strong because it's one of...

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