OrangeSoda Internet Marketing Blog

The Search Engine Marketing Professional Organization or SEMPO says the search marketing industry has healthy growth, despite any worries about a recession in the US.

Their 2007 State of the Market survey talks about how “print magazine advertising, website development and other marketing functions…” are growing “as marketers essentially shift the portions of their spending pie, following consumers as they increasingly rely on search engines to conduct pre-purchase research.”

The data is based on questions answered by 867 search engine advertisers and SEM agencies.

Here are key findings about the state of the search engine marketing industry:

• The North American SEM industry grew from $9.4 billion in 2006 to $12.2 billion in 2007, exceeding earlier projections of $11.5 billion for 2007.
• North American SEM spending is now projected to grow to $25.2 billion in 2011, up significantly from the $18.6 billion forecast a year ago.
• Marketers are decreasing their spend on print magazine, website development, direct mail, and other marketing campaigns into search engine marketing.
• Paid placement captures 87.4% of 2007 spending; organic SEO, 10.5%; paid inclusion, .07%, and technology investment, 1.4%.
• Google AdWords remains the most popular search advertising program (with almost 90% saying they advertise on Google).