JPMorgan Bullish on Search Advertising

2008 will be a healthy year for many major Internet companies, according to predictions made in JPMorgan’s new 312-page 2008 Internet Investment Guide (PDF). The report suggests that although revenue will slow down slightly, Internet companies covered by JPMorgan will see earnings outpace the market by a four to one ratio. A major factor, according to JPMorgan, will be a $4.3 billion jump in search advertising revenues.

JPMorgan anticipates that CPMs (cost per thousand) for online ads will increase as a result of a “tighter” supply and improved monetization techniques. This is expected to help search advertising maintain a 28 percent growth rate over the next four years, which is seen as great news for Google, Yahoo, and others.

“We are raising our F’08 global search revenue estimate to $30.5B, from $26.2B, driven by strong volume trends, better-than-expected monetization, and continued robust growth in Continental Europe,” the report explains.

Related articles:

• JPMorgan Chase predicts search revenue will grow to $30.5 billion this year • JPMorgan Predicts 2008 Will Be “Nothing But Net” • JPMorgan: ‘08 Online Ad CPMs Set To ‘Accelerate,’ Search Will Hit $30.5 Billion