15/09/2008

Pay per click advertising (PPC) and search engine optimisation (SEO) will see growth this year and in 2009, according to a report by an investment bank.

Jefferies & Company has had to revise its forecast report for the internet advertising industry, with PPC and SEO spending now expected to increase by 26 per cent in 2008 and 23 per cent in 2009, despite the overall outlook being lowered slightly.

The bank believes that the techniques help businesses achieve value with their website at a reasonable price.

'Search engine optimisation companies seem to be growing in popularity as marketers and agencies use them as a way to increase the efficiency and profitability of their sites at relatively attractive costs, while lowering the spend on other channels,' said the report.

The study also found that Google's rate of expansion will drop from 40 per cent in the first half of 2008 to 30 per cent in the last six months of the year.

Google is currently under scrutiny in the USA for its role in the online advertising market, with a proposed deal between the search giant and Yahoo causing particular concern.