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sempo logoVideo and mobile search, as well as marketers' increased willingness to pay a premium for behavioral targeting and mobile search, are going to propel the search industry forward, according to the 2008 State of the Market survey of advertisers and agencies by the Search Engine Marketing Professional Organization (SEMPO).

Seventy-five percent of the 890 search engine advertisers and SEM agencies SEMPO polled say they'd pay more for clicks behaviorally targeted to in-market consumers. On average, advertisers say they'd pay 10 percent more for dayparted and demographic segmenting, and 13 percent more for behavioral search targeting.

Close to a third of respondents have at least dabbled in local search and think it "works great." Another third weighed in with "works OK." Most would pay extra to locally target search advertising, but not over 10 percent of their baseline click rate.

Video Search: Just over half (54 percent) of marketers are keen to give video search a go, or at least contextual advertising tied to video search results. Many, though, are unwilling to pay a premium. Of those who are, they want it capped at under 20 percent.

Mobile Search: Mobile search is making strides, too. Some 48 percent express interest in contextually targeted ads sent to mobile search users. Most aren't willing to pay more for this than for traditional contextual search ads. Of those who are, they say they'd go up to a 30% premium.

Social Media Search: Over 40% of the survey's advertiser respondents say in-house programs are in place to promote their brands on social media. Facebook is their top choice, followed in descending order by Digg, Del.icio.us, StumbleUpon, Reddit and Technorati.

“When you look at long term growth of the search marketing sector, it is evident new forces such as mobile advertising and contextual video ads will fuel increased online ad spend.  These forces are still in the early stages but clearly the consumer is embracing these new channels with enthusiasm,” observed SEMPO President Sara Holoubek.

Rebecca Lieb

Published 8 April, 2009 by Rebecca Lieb

Rebecca Lieb oversees Econsultancy's North American operations.

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