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When the SEMPO study premiered in 2004,SEM was valued at $4.1 billion. Since then, the industry has enjoyed consistent, often double digit growth, bringing its total value to $16.6 billion in 2010. Now, in the State of Search Marketing Report, SEMPO and Econsultancy predict the industry to grow by 16% in 2011--bringing total value to $19.3 billion. That growth is just one of the top line findings of the report.
Spending on both PPC and SEO expected to rise. More than half of client-side respondents (54%) anticipate spending more on SEO this year. And, on average, respondents expect to increase their SEO spend by 43%, which would move total SEO spending close to the $3 billion mark. Companies are also expecting to spend 31% more on PPC, and while that is less than last year’s expected increase (37%), the overall trend is still upward.
Important Trends in Search
It’s the year of mobile, in SEM at least. More than 79% of respondents deem the rise of the mobile internet as ‘highly significant’ or ‘significant’, representing a 14 point jump from last year’s survey.
Local search share has grown to over one third of budgets. Forty-three percent of agencies say the growth of local search is a ‘highly significant trend,’ and a further 41% say it is ‘significant.’ Agencies are also reporting that 34% of their clients’ paid search budget is spent on local PPC advertising, compared to 54% for national and 12% for international PPC.
The use of social networks for marketing is growing at a pace that almost matches the hype. The percentage of company respondents who say they use Facebook for marketing now stands at 84%, up from 73% last year. Three-quarters (74%) of North American agencies say their clients run PPC campaigns on Facebook. Three quarters of companies (75%) use Twitter to promote their companies or brand.