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Lee Odden

SEMPO Survey: SEO More Popular than Paid Search

By Lee Odden     Marketing Industry News, Search Marketing, SEMPO, SEO

Here are highlights from SEMPO’s 2005 Annual State of Search Survey, or as I heard Dana Todd call it at SES Chicago, "the SEMPO Big Ass Survey".

  • SEM was a $5.75 billion industry in North America in 2005, and will grow to $11.1 billion in 2010
  • Brand awareness is advertisers’ top objective for SEM programs, particularly large firms
  • Organic SEO is the most popular form of SEM, with 4 out of 5 advertisers using this method, with paid placement a close second at 76%
  • ROI is in line with inflation: Four out of five advertisers say they could afford to pay a mild increase in the price of paid placement, while of advertisers and all agencies report moderate price hikes this year.
  • SEM is poaching budget from other marketing channels for the vast majority of advertisers – especially from affiliate marketing and web site development.
  • Senior executives consider SEM a high business priority with almost half of advertiser respondents (47%) saying that senior management at their companies were "very involved" in SEM programs, especially among companies with fewer than 500 employees
  • Most advertisers plan to manage the majority of their SEM spending in-house in 2006. SEM agencies may see a decline in business as a result.

The full report will become available early 2006, first to SEMPO members and then the general public.  Here are results from the 2004 State of Search Marketing survey.

Tags: SEMPO Survey, SEM Spending, SEO Spending, Search Marketing Budgets, SEM, SEO, SEMPO


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