Paid Search to easily burst through the £1 billion mark; SEO market to surge to £147 million after reaching its ‘tipping point’...

London, 18 May 2006: The size of the UK market for Search Engine Marketing will grow to £1.41 billion by the end of 2006, a 65% rise from £855 million in 2005, according to research published in E-consultancy’s 2006 Search Marketing Buyer’s Guide.

The UK Paid Search market, which more than doubled in size during a remarkable 2005, will grow to £1.26 billion in 2006, a 67% increase on 2005 when Paid Search was worth £757m.

The market for Search Engine Optimisation, also known as natural or organic search, will be worth £147 million by the end of 2006, up 50% from £98 million in 2005, according to E-consultancy forecasts.

E-consultancy analyst Linus Gregoriadis said: “Marketers will continue to increase their investment in Search because of the attractive returns and its accountability. The market will remain extremely buoyant through 2006 and beyond, though we expect the upward trajectory of Paid Search to flatten slightly as the market becomes more mature.”

While Paid Search will begin to slow down slightly, the pace of growth in the SEO market will continue to accelerate as more companies understand the importance and value of ‘natural’ search engine visibility.

Chris Lake, E-consultancy’s editor, added: “It has taken a bit longer than for Paid Search, but we believe that SEO has now also reached a ‘tipping point’. SEO only accounts for 10% of total SEM spend but expect this proportion to increase. There is still a massive opportunity out there for companies who are currently overlooking the revenue-generating and brand-building opportunities of high natural search listings.”

Key market trends in 2006

• Growth in the market for SEO services increases as more businesses grasp the importance of visibility on natural listings for financial and brand objectives.

• Marketers are becoming more savvy about Paid Search ROI. PPC keyword deflation will continue to occur in some sectors, as a correction to initial over-enthusiasm.

• Search is increasingly being built into overall marketing plans as it becomes more strategic.

• There is increased awareness about the need for ethical SEO.

About this report
This report, which is an updated version of our 2005 Search Engine Marketing Buyer’s Guide, covers both search engine optimisation (aka SEO, organic search, or natural search) and paid search (aka PPC, paid listings, or pay-per-click). Search Engine Marketing (SEM) is about making a product, services or brand visible to searchers and using relevant content to attract visitors to a website.

Which agencies are featured in the buyer’s guide?
Ambergreen, Bigmouthmedia, ClickThrough Marketing, dgm, Diffiniti, Greenlight, i-level, Koded, Latitude, MediaCo, Netrank, Neutralize (*\*), Optimize, Receptional, Search Marketing Agency, Site Visibility, Sitelynx, Spannerworks, Stickyeyes, Summit Media, Tamar, The Search Works, Unique Digital, Vertical Leap, Web Diversity

Download E-consultancy’s 2006 Search Marketing Buyer’s Guide today.

A free market research report is available to journalists and internet marketing / search-focused bloggers. Please email for details.


Media contacts:
Linus Gregoriadis, Analyst, E-consultancy
(e: t: 0207 681 4051)

Chris Lake, Editor,
(e: t: 0207 6814052)

About E-consultancy
E-consultancy is the UK’s leading online publisher of best practice internet marketing reports, research and how-to guides. It also publishes buyer’s guides and has a directory of 100,000+ third party internet marketing white papers.

Since moving to a paid-content model in 2003 E-consultancy has amassed thousands of paying subscribers, more than 35,000 registered users and 150,000+ unique users sessions per month. Its weekly newsletter is sent to 20,000 users. Subscribers pay from £149 per year to access the exclusive and highly practical content, which helps internet marketers get the most out of their websites.

E-consultancy has more than 100 events lined up for 2006, including roundtables and monthly Supplier Showcases, where six suppliers pitch to an audience of pre-qualified buyers (typically between 100-150) in a Central London venue. E-consultancy also provides a range of public and in-house training programmes, such as seminars and workshops.

Published on: 12:00AM on 18th May 2006