Search Engine Marketing Jumps 62% to Hit $10 billion in 2006: SEMPO Survey 

Advertisers in North America spent roughly $10 billion on search engine marketing in 2006, a 62% jump from 2005, according to an annual survey by the Search Engine Marketing Professional Organization (SEMPO). Based on the survey, SEMPO estimates that search engine marketing will double to $18.6 billion by 2011, reports MediaWeek. 

Paid search spending, mainly for pay-per-click advertising, accounted for 86% or approximately $8 billion of search marketing spend, while spending on organic search (using search engine optimization) totaled $1.1 billion, or 12% of spend, according to SEMPO, reports MarketingVOX.

Related: Sizing Web Search & Search Marketing: Key Stats, Forecasts & Metrics

According to the report, The State of Search Marketing 2006 Executive Summary, that rapid growth will be driven by continued advertiser demand, rising prices and a new wave of small-to-midsize businesses discovering the medium.

Some 76% of surveyed advertisers said they used SEO, while 71%said they used paid search. And the most popular paid search solutions:  

  • 96% of the marketers and agencies surveyed report using Google AdWords to promote their brands.
  • 86% of the respondents say they have run ads on Yahoo’s search product.
  • 68% of advertisers said they used MSN for their search campaigns in 2006, up from just 29% in 2005.

Just 21% of search advertisers actually track or measure the branding impact of search for their campaigns.

SEMPO surveyed 587 search agencies and advertisers for this report and counts both paid search advertising and spending on companies’ internal search engine optimization in its dollar estimates.

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