Nielsen/NetRatings, the global standard for Internet audience measurement and analysis, reports today that growth in demand for paid search advertising outpaces growth in supply, leading to higher prices and threatening to slow the growth of search advertising. However, the imbalance can be mitigated with continued investment aimed at improving search relevancy, according to the report released to clients last week.
Americans generated 1.2 billion search sessions during May 2004, a 30 percent rise from May 2003. The principal driver of growth in sessions between May 2003 and May 2004 was a 15 percent increase in the online audience. Growth in the number of search sessions per person was a positive 11 percent during the period, while growth in search reach was only two percent.
Because the vast majority of the online population already uses search and because the size of the online population will inevitably begin to slow, future growth must come from growth in the frequency of searches per person.
Read the report here.
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