Search Engine Advertisement - $9.4 billion market
February 15, 2007 – 1:08 am | by nandakbSearch Engine Ad Steady Growth
The search engine advertisement spending at North America has reached $9.4 billion on 2006, 63 percent more than last year 2005 ($5.75 billion). By 2011 this spending will be doubled to $18.6 Billion as per clickz.com prediction.
Out of $9.4 billion $ 8.0 billion has been spend on Search engine paid placement service (Google Adwords & Yahoo Search Marketing), remaining $1.4 billion spent on Search Engine Optimization (SEO). Although corporates are yet to be convinced by the performance, Search engine ad market is confident in getting more fund in coming years. Most of the Search Engine marketers are betting on Direct Response as a outcome of Paid Placement advertisement, shows little interest in Branding.
The inferred success factors over other marketing medium is
- Target ability
- Tracking
- Deliver ability and Flexibility
- Pull Technology
- Cost effective
- Customer- centric marketing
Based on the “Behind the Numbers: Measuring Up.” article by Loechner, Jack (OMMA Magazine, USA today jan 2004), Business To Business (b2) has accounted 87% of new sales lead generation compare to Business To Customer (B2C) 70% of new customer lead.
| B2B | B2C | |
New customer lead generation |
87% | 70% |
Brand Awareness and Recognition |
71% | 70% |
Improved customer relationships |
64% | 75% |
US Ad Spending Growth Rates on Internet
| 2005 | 30.30% |
| 2006 | 26.80% |
| 2007 | 15.10% |
| 2008 | 17.50% |
| 2009 | 9.80% |
| 2010 | 6.80% |
More reading about Search Engine Advertisement
- Targeting usage demographics to increase paid
- How much should you budget for search marketing in 2005,
- The holistic approach to search Engine marketing,
- How to get a bigger marketing budget approved
- Is your paid search advertising generating positive financial results?
- Search optimization,not search engine optimization