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Marketing Spending is Shifting to Search

I was just speaking at a regional Sharp Minds event and explaining Search Engine Dominance in Web 2.0. Much of business blogging’s success and the move into the social media for corporations has been driven by Search Engines. It’s not enough to build a cool site and wait for it to be found – you need to make your site findable and find other mediums to spread the word.

Here’s some highlights taken from the survey results:

SEMPO has released an analysis today at the Search Engine Strategies conference. While the numbers appear robust, and reflect a desire for marketers to continue to spend on search, the survey can not estimate the result of a shortage of search inventory (searches) caused by a major economic downturn.

Marketing Expenses are Shifting TO Search

A critical finding is that search marketing spending is increasing at the expense of print magazine advertising, website development and other marketing functions, as marketers essentially shift the portions of their spending pie, following consumers as they increasingly rely on search engines to conduct pre-purchase research.

Here are key findings:

  1. The North American SEM industry grew from $9.4 billion in 2006 to $12.2 billion in 2007, exceeding earlier projections of $11.5 billion for 2007
  2. North American SEM spending is now projected to grow to $25.2 billion in 2011, up significantly from the $18.6 billion forecast a year ago.
  3. Marketers are finding more search dollars by poaching budget from print magazine spending, web site development, direct mail and other marketing programs.
  4. Paid placement captures 87.4% of 2007 spending; organic SEO, 10.5%; paid inclusion, .07%, and technology investment, 1.4%.
  5. Google AdWords remains the most popular search advertising program, but both Google and Yahoo sponsored search spending has decreased from a year ago.

SEMPO - Money Shifts

5 Comments

  1. 1
    • 2

      Caleb,

      You, quite possibly, have the WORST site I’ve ever seen. It’s pretty evident that you’re just trying to attract search engine traffic to your site by throwing a couple chunks of text in between. I hope you’re not trying to just latch on to my traffic.

      Doug

  2. 3

    My Cj stats don’t say wezeemall is the worst site.The comment I left was meant to help readers as it does fit the subject of your post….but you’re welcome to your opinion.

    • 4

      Hi Caleb,

      I just wanted to be sure you weren’t dumping links down to try to gain search advantages. I apologize for insulting you and appreciate you adding to the conversation.

      My point in replying was to make sure you were ‘real’ and not some spammer. Please note that I didn’t simply remove the link – I wanted to check first.

      Doug

  3. 5

    Hi Douglas,

    Very good information in your post. We advise all of our business technology clients to focus first on their online visibility, and search is where we start. However I think there is a danger in draining too much money from other marketing functions, especially website development. With the website as the hub of a marketing program – and for high tech marketing that?s somewhat of a given – it?s startling how many websites are really ineffective. (And I?m not a website developer.)

    Traffic is certainly one of the three keys to increasing revenue, and search marketing is great for this. But the ability to convert that traffic to customers is a second, equally important key.

    I realize your post is simply conveying information and not making a statement. Just wondering what you think.

    Susan

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