SEMPO: SEM Increasing at the Expense of Traditional Marketing

SEMPO, today released the results of its annual State of the Market Survey and the results indicate that the search marketing industry has exceeded the project spending allocations that were expected in 2007 and that the overall consensus from marketers it that the industry will continue to positive growth.

However, 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.

Where is the budget for Search Marketing coming from:

Here are key findings from SEMPO's State of the Market Survey:

- 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

- 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.

- Marketers are finding more search dollars by poaching budget from print magazine spending, web site development, direct mail and other marketing programs.

- Paid placement captures 87.4% of 2007 spending; organic SEO, 10.5%; paid inclusion, .07%, and technology investment, 1.4%.

- Google AdWords remains the most popular search advertising program, but both Google and Yahoo sponsored search spending has decreased from a year ago.

Overall popularity of Search Marketing Programs: