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Digital marketing budgets in search engine and social media marketing are continuing to rise despite challenging economic conditions, according to research released today.

The UK Search Engine Benchmark Report, published in association with NetBooster, has for the past five years shown that companies have continuously invested in the opportunities present in SEO, paid search and social media marketing.

According to the research, based on a survey of over 300 UK in-house marketers and over 200 agency employees, nearly two-thirds of companies (62%) plan to increase their social media spending within the next 12 months, with 57% increasing spending on SEO and almost half (49%) increasing spending on paid search.

Over a third of companies (38%) are spending in excess of £100,000 on paid search advertising each year, with 12% spending similarly in SEO.

The report also found that the three most commonly cited barriers to success in paid search were the strength of competition, keywords being too expensive, and a lack of budget, with over a third of companies citing these three challenges as some of their most significant issues.

The most commonly cited barrier to success in SEO was listed as a lack of resource, with 42% of companies stating that this was a problem. Such findings are in line with the trend towards higher cost-per-click rates and an increasing emphasis on the production of high quality, original content for SEO.

Commenting on the research, Edward Cowell, SEO Director at NetBooster said:

This year has been a period of the most rapid and interesting change we’ve seen in digital and search for a long time. I am delighted to say that the search sector is still evolving at pace, and the outlook for investment in search marketing remains positive.

Andrew Warren-Payne

Published 24 May, 2012 by Andrew Warren-Payne

Andrew Warren-Payne is a Senior Research Analyst at Econsultancy. Follow him on Twitter or Google+

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Comments (2)

John Courtney

John Courtney, CEO and Executive Chairman at Pay on Results SEO, Content Marketing, Social Media, Digital PR, PPC & CRO from Strategy Digital

Google keeps changing the rules with Panda and Penguin, so it's so surprise companies are looking to increase their spend in organic and social in particular, and not so much in paid search.

over 4 years ago

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John Brown

These statistics simply confirm the increasing importance of social media and the role it plays in the marketing strategies of many businesses. More and more businesses are becoming more savvy with their social media use and know how best to use it.

over 3 years ago

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