Search Marketing Expected to Grow 16% in 2011
Due to the rise of the mobile web, local search and Facebook commerce, search marketing is expected to grow 16 percent in 2011. According to a new survey from Econsultancy and SEMPO titled State of Search Marketing Report 2011, the industry will grow from a value of $16.6 billion to $19.3 billion this year alone. The global online survey fielded responses from over 900 companies and agencies.
Forty percent of respondents said the growth of the mobile web was "highly significant," up from 26 percent last year. Another 39 percent classified this development as "significant." Local search was deemed "highly significant" to 43 percent of respondents and "significant" to 41 percent.
Advertising agencies responding to the survey said that 34 percent of clients’ search budgets are spent on pay-per-click advertising, with 47 percent of respondents saying they're now using Facebook's PPC campaigns. This is important because Facebook's audience is so big; 74 percent of the companies surveyed said their customers use Facebook.
"The industry is evolving to encompass much more than the search engines," said SEMPO President Chris Boggs, in a company press release. "The increasing role of social media is reshaping the industry in surprising ways.”
Social media is a significant tool for self-promotion, with 84 percent of the companies saying they use Facebook in this mannner (compared to 73 percent last year). Seventy-five percent use Twitter and 52 percent use LinkedIn to promote themselves.
The report also shows significant outsourcing of search engine optimization, paid search and social media. Only 44 percent of respondents’ SEO work is done in-house versus 51 percent last year; 38 percent of respondents are handling paid search in-house compared to 47 percent last year; and 55 percent are doing social media marketing in-house versus 62 percent in 2010.