The future of paid search

A good question to consider, will paid search remain the largest online advertising format and for how long? The answer to this will depend on the court case taking place this week where Google will be in front of the Senate subcommittee for a hearing on antitrust, competition policy and consumer rights.

The hearing will look into Google providing its ad services to Yahoo and the effect this will have on its market share and what it means to the public and internet advertising as a whole. The U.S Department of Justice will also start an investigation into the Google/Yahoo deal that is aimed at messing up Microsoft’s takeover bid. It will be interesting to see what effect the hearing has on Google’s dominance in paid search.

Paid search with Google has been extremely dominant since 2002 when they introduced a brand new algorithm. This meant that the position of the ad was dependent upon how the bid size and frequency of clicks. With this Google was able to monetize ads at an extremely high rate quite successfully.

Is the future of paid search and Google bright? Well recent reports explain that paid search will continue to grow, however other formats like video and mobile will grow much faster. So really the answer is yes, Google has a very bright future.

Let’s face it, Google has the highest search volume of anyone, more advertisers use it and it has more money than anyone to spend on research. So unless they mess up massively and let a small competitor take over them Google will continue to increase its market share.

Adam
PPC Consultant

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