Why are online advertising on rise ?

[nameeta]

Online advertising up in 2004; search is top segment.Companies spent significantly more money advertising online in 2004 than in 2003, as ads linked to search-engine activities proved to be the most popular category for the second straight year.
Well what do you all think is the reason for this increase ? What are your views on the same?
For news on this click here (http://www.seotalk.biz/archives/2005/05/02/online-advertising-up-in-2004-search-is-top-segment/)

[weblaunch]

As an advertiser subscribing to Google AdWords, I can attest that pay-per-click advertising does work. It is possible with the proper techniques to realize a profit from contextually targeted ads. Content-based advertising is far more effective than traditional, non-targeted banner advertising.

[megri]

Content-based advertising is far more effective than traditional, non-targeted banner advertising.
But now the google is again coming to traditional banner ads and there PPC rate is quite high why so

[nameeta]

Yes i have also read that Google is giving good payouts.I think google is giving targeted banner ads more priority and pay outs.

[jagan]

yes becasue as i think google has no issue of (optimized or non-optimized like in text ads) with graphics ads or banner ads, so he is giving more ads related to graphics

in another side in text based ads, he also have to see the contents of the ads and some times due to good optimized ads, it comes first from high bid ads