Lee Odden

SEMPO Estimates 2004 Search Engine Marketing Spend at $4 Billion

Lee Odden     Online Marketing

SEMPO Finds Advertisers Will Spend $4 Billion Dollars in 2004 on Search Engine Marketing. 2005 estimated at 39% higher according to their recently released research paper, The State of Search Engine Marketing 2004.”

Official Summary:

ÙÄÇÉ Brand awareness is advertisers’ top objective for SEM programs, particularly
large firms
ÙÄÇÉ ROI is outpacing inflation: Advertisers say they could afford to pay on average
33% more for price of keywords and remain profitable, while they say prices have
gone up 26% on average in the last 12 months
ÙÄÇÉ SEM is poaching budget from shopping directory listings, web advertising, email
and print ads
ÙÄÇÉ Senior executives consider SEM a high business priority at 50% of advertiser
ÙÄÇÉ Advertisers plan to increase their SEM spending 41% on average in 2005
ÙÄÇÉ Most advertisers plan to manage the majority of their SEM spending in-house
in 2005

Also, it was interesting to see that organic SEO was more popular than Pay Per click or Paid Inclusion as a service offered by Search Marketing firms.

There also appears to be good support for establishing SEO industry standards to deal with SEO abuse and search engine spamming.

Most firms expect to manage their own organic search engine optimization programs in-house in 2005. I’ve already noticed a trend towards SEO’s getting recruited from their own consulting businesses into working for larger corporations.

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About Lee Odden

@LeeOdden is the CEO of TopRank Marketing and editor of Online Marketing Blog. Cited for his expertise by The Economist, Forbes and the Wall Street Journal, he's the author of the book Optimize and presents internationally on integrated content, search, social media and influencer marketing. When not at conferences, consulting, or working with his talented team, he's likely on a beach somewhere doing absolutely nothing.