Search To Grow As Marketers Express ROI Concerns

Search engine marketing expenditures will grow 14% this year, jumping from $14.6 billion in 2009 to $16.6 billion by the end of December, according to research from the Search Engine Marketing Professional Organization (SEMPO).

This growth does not come without some trepidation, however. SEMPO found that measuring return on investment is the biggest challenge facing marketers.

Where’s the money coming from? Nearly half (49%) of respondents indicated they are reallocating budgets to search engine marketing from print advertising. More than a third (36%) are shifting money away from direct mail, and almost a quarter are moving budgets from conferences and exhibitions (24%) and Web display advertising (23%).

Google, unsurprisingly, is the big beneficiary of this trend. Nearly all (97%) respondents are paying to advertise on Google AdWords. Of these, almost three quarters (71%) pay to advertise on the Google search network while 56% use the Google content network (keyword targeted).

Google is apparently maximizing its dominance. More than half of advertisers (56%) and agencies (62%) say that Google keywords have become more expensive over the last year. Meanwhile, only around a third of advertisers noted an increase in Yahoo (32%) and Bing (29%) keyword costs.

Leaving Google aside, marketers named personalization of search results and the rise of local search were two trends worth watching.

The report is based on an online survey which was fielded during January and February among SEMPO and Econsultancy members. Results were collected from 1,471 respondents, including 527 advertisers and 944 supply-side respondents carrying out search engine marketing on behalf of clients (including agencies or consultants).