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Search is now regarded as essential. No longer just the Internet darling, search has reached a maturity that resonates warmly with users and businesses. Users have adopted search in their product purchase cycles. Searchers typically begin their efforts at major horizontal search engines, then click their way to more vertical destinations when their needs aren't satisfied by the mountain of listings provided there. Search ads are effective and are gaining popularity with advertisers every day, however. With paid listings ubiquitous among horizontal and vertical properties, well-targeted ads lead searchers to subject-specific vertical destinations where the purchase cycle matures. Earning reports from Yahoo! and Google confirm the effectiveness of search campaigns: revenues for both companies more than doubled in the first quarter. Another huge indicator of search’s value: agencies and media companies finally understand that the most profitable way to increase the effectiveness of their campaigns, whether TV, radio, print or online-based, is to “capture interest when it’s expressed in the search engines after each campaign.” (“The SEM CEO's Predictions, Part 2,” Clickz.com, Frederick Markini, Jan. 10, 2005). Safa Raschtchy, Piper Jaffray analyst, expressed an industry sentiment at a conference earlier this year: “Search is likely to become the most successful marketing method for all businesses.” Backing this statement, he reminded the audience that search is already on target to exceed the $7 billion mark this year – two years earlier than predicted. Bumping up his profit expectations, he foresees search climbing to $13.5 billion in 2007 and $23 billion in 2010. Rashtchy feels there are a number of revenue drivers fueling the growth:
On a community note, it’s also really nice to talk to people not employed by an online business who can now talk shop when it comes to search engines. The education cycle has reduced because search is maturing. The team here at Vortaloptics has found the shift highly refreshing. The question, “What does your company do?” was at times dreaded due to the perplexed conversations employees would have with acquaintances when they would respond, “We build vertical search engines.” A blank stare, a furrowed brow and silence would then lead our intrepid team to reply with a discourse on general search engines and subject-specific search engines. Too often, the acquaintance’s next statement would often take the shape of “Oh, you mean like Yahoo! I have Yahoo!” Sadly, that’s usually where the conversation ended. But now our team has more meaningful, interactive conversations regarding their field of business. Indeed, search does lead to engaging exchanges everywhere from board rooms to family dinner tables these days. It’s finally time to say with confidence that “search” is a household name. |