So it doesn’t matter that more people report using SEO more. The vast majority of the money is going to paid search.

#1. It shows that the PPC industry is still at a tender age and yet to experience its full marketing potential. Why did say this? By the time you consider the fact that over 90% of SE users don’t go beyond the first SERPs, then you would realize that the rest of the websites in pages 2 to infinity would soon be fighting for the first page of the SERPs through PPC!

#2. It’s a fact – not every website can fit into the first page of the SERPs, so some website owners would eb=ven give up trying or get frustrated to get to that juicy first page. Hence, they would decide to ALWAYS rely on PPC ads… more money in the Paid Search.

#3. With a *thriving* black-hat SEO practice, even among top Search Engine Marketers, organic SEO would always be of prime importance to many, though, they may get caught they would reinvent themselves to come back in another form.

#4. Many people are still confusing SEM with SEO and PPC. By the time they start understanding the differences, there will be more money flowing towards Paid Search, see (http://forums.searchenginewatch.com/showthread.php?p=67147#post67147).

#5. Many newbies who “discover” the importance of search marketing make SEO their first point of call, then after going through the motions of inability to become #1 in the SERPs, they resort to what? Paid Search.

The question is: How large would Paid Search get?
Simple Answer: As large as SEO! That means 50-50.

Is the market going to be as big as predicted? Much bigger!