• June 15, 2007

Search's share of online advertising will decrease from last year's 40% to 32% in 2011, forecasts research firm IDC.

In its study, "U.S. Internet Advertising 2007-2011 Forecast and Analysis: Funding the Consumer Internet," IDC predicts that Internet ad spending will grow three times faster than overall advertising during the next five years--from $16.9 billion in 2006 to $31.3 billion in 2011.

While search goes down, rich media's share of the total will grow fast, thanks to broadband connections allowing for the downloading of data-intensive graphics and video.

"Broadband video commercials will experience their breakthrough in the coming years," said Karsten Weide, program director, Digital Marketplace: New Media and Entertainment at IDC.

"This will create tremendous opportunities, but also threats, for old and new media companies. At the same time, search advertising will lose market share, which may pose a strategic challenge for Google, the Internet advertising market leader."

Google awaits regulatory approval of its $3.1 billion acquisition of DoubleClick, the display ad network leader. -- Les Luchter