SEM Spending to Grow in 2009, SEMPO Survey Says
Despite the tough economic climate, search engine marketing spending will continue to grow this year, according to a recent survey of advertisers and agencies by the Search Engine Marketing Professional Organization.
The survey also projects sustained SEM growth over the long term, reaching an approximate $26.1 billion total spend in 2013.
The growth is being driven by advertiser demand, rising keyword pricing and cost-per-click efficiencies. Given the efficacy of search advertising, SEMPO believes the recession will not affect the SEM industry as significantly as other forms of advertising and may, in fact, bolster it slightly as advertisers demand greater efficiency from their marketing spends.
- 2008 SEM spending totaled $13.4 billion;
- 2009 SEM spending is projected to rise to $14.7 billion;
- paid placement accounted for 88 percent of 2008 spending, or $11.9 billion;
- organic SEO accounted for approximately 11 percent of 2008 spending, or more than $1.4 billion; and
- the market for SEM technologies, including leasing, agency solutions and in-house development, accounted for 1.1 percent of overall 2008 spending, or $141 million.
Survey responses showed that most advertisers now allocate new funds for SEM programs, according to SEMPO. They're also looking more to offline marketing channels if they need to make budget shifts rather than cannibalizing other online spend categories, such as Web development and affiliate marketing.
Thirty-two percent of respondents reported their funding for paid placement came from a mix of new and existing marketing budgets, while another 30 percent said they are using newly allocated budgets.