Forrester Research projects that European marketers will spend almost €3 billion on search engine marketing by 2010.

Forrester projects that spending will jump 65% this year to total €1.4 billion.

Despite the healthy growth, Forrester expects search engine marketing to decline in terms of its share of the overall online advertising market, in part because of the concurrent growth of rich media ads, where growth is expected to be spurred by expanding broadband access.

Another factor cited by Forrester is the rising price of keywords. Keyword prices in Europe may well follow the same path seen in North America, where it says prices are five times higher than in Europe.

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