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We’ve just published our 2007 Search Engine Marketing Buyer's Guide and the sector is looking as healthy as ever.
We forecast that UK spending on Search Engine Marketing will increase 58% this year to £2.22bn - and although that growth rate is down from 65% in 2006, the market still looks to have plenty of room for growth in the future.
As you can see from the chart below, we estimate that the value of paid search alone will near the £2bn mark this year, reaching around £1.97bn, up 56% from 2006.
But for the first time, spending on organic search will grow more quickly, increasing 68% to £252m. Our estimate includes payments to agencies, as well as investment in client-side staff to manage SEO and implement changes.
In a survey of search marketers we carried out with Neutralize (*\*) in March this year, around two thirds of respondents said they would be increasing their budgets in the next 12 months for both paid search (65%) and search engine optimisation (64%).
As competition heats up between advertisers, shifts in spending have also become apparent, including more investment in SEO and an increased focus on other factors, such as usability, that can affect search marketing campaigns.
The buyer's guide itself includes extensive details on 29 search agencies and their specialities, as well as some tips and pitfalls and a 'SWOT' analysis of the marketplace.