Analyst Releases "The Golden Search," a New Report on the Search Industry
MENLO PARK, Calif., March 20 /PRNewswire-FirstCall/ -- Over the past 18
months, the prominence of search as the most effective online marketing tool
has risen dramatically, while ways to monetize the search page have been
expanding as well. In his new in-depth research report on the online search
industry entitled The Golden Search, U.S. Bancorp Piper Jaffray Senior Analyst
Safa Rashtchy asserts that the industry represents a major growth market,
which he expects will reach nearly $7 billion in worldwide revenues by 2007,
growing at a compounded annual rate of 35 percent. In addition, he believes
that the key driver of growth is "the increased popularity of search as the
most efficient way to find products and information, and simultaneously the
rise of search as the best way for advertisers to find and acquire customers."
Rashtchy has identified five key trends that he believes will shape the
future of the search industry, and understanding these trends will enable
investors to identify potential winners in this growing market. These trends
1. Search Capitalism -- Overturism, or the idea of paid search as a
market-driven customer acquisition vehicle
2. Googlism -- increased importance of relevance and a race to provide the
best search experience,
3. Globalism -- the increased importance of international markets and its
impact on the partnerships among search companies,
4. Elitism -- concentration of search among key destinations and the
increasing importance of branded destinations, and
5. Realism -- the next phase in search: in-context search.
"The combined outcome of these five trends is that search will expand from
its current form to have a much wider scope in functionality and monetization
and could become one of the biggest revenue segments for portals around the
world," said Rashtchy. "We also expect significant consolidation and merger
and acquisition (M&A) activity in the search space, with the value of market
leaders in search monetization and technology continuing to rise."
In Rashtchy's opinion, the two most important companies in the search
space are Overture Services, Inc. (OVER, $15.54, #>) and Google. Among
portals, he believes Yahoo! Inc. (YHOO, $22.21, #=) and MSN (MSFT, $26.32, #>)
have the best focus and potential on expanding their search market share, and
both are facing stiff competition from Google.
To examine trends in the online search industry, Rashtchy hosted the Piper
Search Symposium: 2003 and Beyond Tuesday in New York. The highly successful
symposium featured senior management from nearly all major search companies,
including Yahoo!, Google, Overture, AltaVista Company (CMGI, $0.84, #>=),
Fast Search & Transfer(TM) (FASRF, $0.86), LookSmart, Ltd. (LOOK, $2.10, #>),
Ask Jeeves, Inc. (ASKJ, $6.49, #>), FindWhat.com (FWHT, $9.70) and
eSpotting.com. Those interested in accessing the webcast archive of the Piper
Search Symposium: 2003 and Beyond, please go to www.gotoanalysts.com/ss .
To receive a copy of The Golden Search, clients and members of the media
should contact Dana Wade at email@example.com or 415-277-1556.
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