Search Engine Marketing Enjoying Strong Growth

Article Posted 2003 August 10, Sunday
by Gord Collins - Bay Street Search Engine Optimization | Toronto, Ontario | Canada

Statistics from the largest research firms show search engine marketing is assuming increasing importance in big company online marketing budgets. Recent trends in Internet use are revealing why.

Data released by Statmarket discovered a 30% rise in direct navigation to web sites in the last year. The reasoning is that web users have preferred sites or don't have the time for surfing anymore, so they go directly to a site. Search engine usage has grown almost 100% over the same time period (2002 June to 2003 June) and in some countries that growth is even larger. Navigation via web links (banners etc.) was found to have decreased 50% during that time period.

Jupiter Research forecasts the market for search will rise to $4.3 billion, or 43% of the online advertising market. Jupiter's survey of marketing executives revealed that 82% of large companies intend to increase their spending on search marketing. Revenue per click estimates have increased from 27 cents to 35 cents by 2008. Search marketing's share of total advertising spending will double by 2008 according to Jupiter.

With Yahoo's acquisition of Overture for $1.6 billion and the profitability Google is enjoying with its AdWords program, search has a powerful foundation for growth. The Jupiter executive survey of big budget marketers revealed marketing executives rated search marketing as better than banner advertising. 64% of companies are expected to increase their spending this year. Other studies showed search engine generated visitors are more likely to purchase than other types of visitors.

Vast Potential for Search Engine Marketing

EMarketer reports that at the end of 2003, B2B ecommerce revenues will measure $721 billion USD. By 2004, US ecommerce revenues should reach 1.01 trillion USD. The potential for search engine marketing as a key marketing vehicle will grow at a faster rate than that.

Google's market share has grown considerably and less popular search engines are showing a move back to uncontaminated results. This means natural search engine optimization (organic SEO) should continue to be a key technique of reaching targeted consumers.

Gord Collins - Visit the Bay Street Search Engine Optimization Consultants Profile
©2003 Bay Street Search Engine Optimization Toronto Ontario - All rights reserved.

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