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Paid search can also be used effectively as a branding and link building mechanism, and help reinforce your organic search rankings.
As the web gets more efficient, companies doing well in organic search will plow more of their organic search profits into paid search even if it loses money, so that they may lock out competition, maintain momentum and exposure, build a strong relationship with Google, minimize business risks, and support the ecosystem which provides their profit.
In after hours trading today Amazon eclipsed Yahoo in market capitalization! Seeing Amazon add more editorial content, extend into new markets, and have expanding margins while Yahoo! has went nowhere in the last year shows Google is still gaining marketshare, and that the search ecosystem is going to become more self reinforcing as time passes.
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