Below highlights a summary of a recent report on the state of search engine martketing and the expected growth, plus challenges.
The Search Engine Marketing Professional Organization (SEMPO) recently announced the results of its sixth annual State of Search Engine Marketing Report. Based on a global online survey of nearly 1,500 client-side marketers and agency respondents conducted by Econsultancy, the report estimates that the North American search engine marketing industry will grow 14% from $14.6 billion in 2009 to $16.6 billion by the end of 2010.
The report says that the biggest challenge facing marketers is measuring return on investment in all three key search tactics covered in the survey — search engine optimization, paid search, and social media marketing. Focus on ROI is highlighted in the report’s executive summary as well as rationale for the shift of marketing budgets from traditional media to the more efficient, effective and measurable use of search tactics.
Other highlights
- The rise of social media marketing budgets, although still modest compared to search engine optimization and paid search, represents the biggest opportunity for search marketers this year.
- Around half the companies (49%) are reallocating budgets to search engine marketing from print advertising. More than a third (36%) are shifting money away from direct mail, and almost a quarter are moving budgets from conferences and exhibitions (24%) and web display advertising (23%).
- More than half of advertisers (56%) and agencies (62%) say that Google keywords have become more expensive over the last year. Meanwhile, only around a third of advertisers noted an increase in Yahoo (32%) and Bing (29%) keyword costs.
- From a range of trends and marketplace developments, company respondents are most likely to say the personalization of search results is having an impact. Just under a third of companies (31%) say this is “highly significant,” and a further 44% say it is “significant.” Agency respondents felt the “rise of local search” was the most significant emerging trend with 38% saying this was “highly significant” with 47% labeling it as “significant.”
Sara Holoubek, outgoing SEMPO President for 2009-2010, said, “Difficult market conditions caused by the recession resulted in a relatively slow year for the industry in 2009, which was improved by a significant upturn in the fourth quarter. This momentum has continued into 2010, and we are expecting a return to double-digit percentage market growth in 2010.”
Marc Engelsman, a member of SEMPO Research Committee, said, “While measuring ROI seems to be an obvious reflection of today’s economic environment, it is important to note as it will likely continue to drive budget decisions. This bodes well for the continued growth of the search industry as evidenced by the projected increased investment in search tactics.”
Traditional media is not dead; the landscape is just shifting towards search and social media.
About Paul Mosenson
