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Vertical Search Will Drive Industry Growth, With Four Industries Dominating Search Spending
JupiterResearch, a division of Jupitermedia Corporation, projected in its newly released report, "Vertical Search: Early Marketers Will Reap Rewards of Low Pricing," that the search industry will develop in much the same way historical media markets before it have, with the broad-based search engines spawning a raft of vertical search engines dedicated to specific categories.
"Broad-based search engines are extremely good at navigating vast amounts of information, but extremely poor at helping a consumer make a purchase decision," said Niki Scevak, analyst with JupiterResearch. "This creates a large opportunity to enhance the consumer experience with vertical search," added Scevak.
The report finds that paid search spending in the U.S. is highly concentrated.
"Broad-based search engines are extremely good at navigating vast amounts of information, but extremely poor at helping a consumer make a purchase decision," said Niki Scevak, analyst with JupiterResearch. "This creates a large opportunity to enhance the consumer experience with vertical search," added Scevak.
The report finds that paid search spending in the U.S. is highly concentrated.
Just four categories - retail, financial services, media and entertainment and travel - accounted for 79% of the $2.6 billion spent on paid search in 2004. Each vertical provides a rich landscape of opportunity and a blueprint for how other categories will develop.
In the search market overall, rapidly rising keyword prices on broad-based search engines will soon stabilize and industry growth will depend substantially on the incremental value provided by vertical search engines.
"The trend will cause a sea change in how advertising spending is allocated online and force media firms in vertical categories to embrace performance-based advertising pricing models," said Scevak.
"If vertically focused media firms do not seize this opportunity, search engines like Yahoo! and Google, as well as a number of established and startup vertical search engines like Shopping.com and Sidestep will enter to satisfy the market demand."
The JupiterResearch report enumerates the top search marketing categories, analyzes the reasons why certain categories contribute disproportionate amounts of spending and recommends strategies for media firms, advertisers and their agencies to apply to vertical search initiatives.
In the search market overall, rapidly rising keyword prices on broad-based search engines will soon stabilize and industry growth will depend substantially on the incremental value provided by vertical search engines.
"The trend will cause a sea change in how advertising spending is allocated online and force media firms in vertical categories to embrace performance-based advertising pricing models," said Scevak.
"If vertically focused media firms do not seize this opportunity, search engines like Yahoo! and Google, as well as a number of established and startup vertical search engines like Shopping.com and Sidestep will enter to satisfy the market demand."
The JupiterResearch report enumerates the top search marketing categories, analyzes the reasons why certain categories contribute disproportionate amounts of spending and recommends strategies for media firms, advertisers and their agencies to apply to vertical search initiatives.
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