50% of search marketers rank web site traffic as their preferred metric for measuring success

"Half of search marketers rank Web site traffic as their preferred metric for measuring success," said David Schatsky, President of JupiterKagan. "There is an increasing cost associated with this traffic, primarily driven by the rise in keyword prices and the cost of expanding to new search providers."

The share of search marketers with annual revenues of $15 million or more has risen from 25 percent in 2005 to 37% in 2006, says  JupiterResearch. According to the new JupiterResearch report, "US SEM Executive Survey, 2006," the number of marketers using bid management and Web analytics tools has risen from 19% last year to 26% this year.

The report also finds that spending on search marketing jumped in 2005. Almost 24 percent of search marketers spent more than $500,000 on SEM campaigns in 2005, compared with 12 percent in 2004. This year, 66 percent of marketers plan to increase search spending. One of the factors contributing to the surge in spending is the increasing cost of traffic.


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