Search advertising growth slowing

According to the company's quarterly report, the average advertiser in the US spent $US2,327 on paid search advertising during the third quarter, an increase of 43% over 2009. However, this is a slower growth rate than in previous years.

"The triple-digit growth numbers from previous quarters have levelled off," the report claims.

"The slower growth rate could indicate that small business search advertisers are closing in on the optimum level of spending they need to achieve their desired results. Additionally, service providers are refining their ability to determine efficient spend amounts in order for advertisers to achieve the highest return on spend."

The firm also pointed out that given the recession and subsequently lower ad budgets, search marketing has performed quite well.