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Search Spend Jumps 44% In 2005
By Andy Beal
Expert Author
Article Date: 2006-01-09
New SEMPO study, via MarketingVOX, shows a 44% jump in search engine marketing spend with $5.75 billion spent in 2005.
The survey found that 83 percent of SEM spending, or $4.7 billion, was spent in 2005 on paid placement.
At first glance, you'd think the money was in PPC, but let's take another look. $4.7b spent on PPC, at an average agency rate of 10%, results in $4.6 million in PPC management fees. Compare that to the more than $1b collected for SEO fees.
SEMPO found that 62 percent of search marketers said branding was the primary objective of search campaigns, but nearly as many - 60 percent - said selling was a key objective.
I'd be curious to see what percentage of the 553 respondents represented Fortune 1000-sized companies? They tend to have a higher demand for branding than smaller companies.
About the Author:
Andy Beal is President & CEO of Fortune Interactive a full-service interactive marketing agency specializing in search marketing and blog marketing. Considered one of the world's most respected interactive and search engine marketing experts, Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian. You can read his internet marketing blog at Marketing Pilgrim and reach him at andy.beal@gmail.com.
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