Keyword search domination

The new Q2 2003 IAB ad revenue report is published, and there is now numeric evidence to support my claim in my thesis that search marketing is taking over online advertising.

“Keyword search continued to demonstrate its strength as the lead indicator of growth for the overall interactive ad industry, representing 31% of total ad revenues for the second quarter of 2003 - more than tripling its stake over Q2 2002 and rising nearly 13% in total ad revenues over Q1 2003.”

With 31% (up from 9% in Q2 2002) keyword search is the ad format with the biggest share of online ad revenues.

Not only that, buy performance-based pricing for online ad buys is growing exponentially. In the full year 2002 report it was evident that performance-based pricing was taking over impression-based deals very very fast. In the new report, performance based deals have grown from 15% in Q2 2002 to 35% in Q2 2003, but interestingly, they are taking away share from hybrid deals and not impression-based deals. I will have to think about what the reasons might be. Any ideas?

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