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2 April 2008

SEM spend exceeding expectations

Spending on search engine marketing (SEM) has exceeded industry projections, as marketers look to shift their budgets from offline and other online methods — according to preliminary SEMPO stats. The Search Engine Marketing Professional Organisation predicts a healthy growth in SEM spending, as search marketing is expected to take budget share from other channels such as print magazines, direct mail and even website development.

The findings make interesting reading, with organic SEO taking 10.5% of overall US search marketing spend. Companies plunge over 87% of the SEM budget into paid placement, while other methods such as paid inclusion take only a very minor share.

Google’s flagship advertising product, AdWords, is still the most popular form of advertising, although spending on both Google and Yahoo! sponsored search has decreased over the year.The research has also found that more SMEs are turning to search marketing. And this is one of the factors behind the expected growth, along with increasing advertiser demand driving up the cost of SEM campaigns.
 
SEMPO president, Jeffrey Pruitt, said the statistics showed search engine marketing continued to prove its worth in the larger marketing arena. However, he added, in light of the concerns about the overall economy, it was important to note some of this spending was the result of shifting marketing dollars from other offline and online marketing endeavours.



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