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 The world of search engine marketing
(SEM) is in constant evolution. With increased numbers of
search engines, and evolution in the techniques and
technologies used, SEM is becoming a tool industries
cannot afford to do without. Trends all over the world
show that the pressure for SEM services is starting to
come from their customers. Indeed, SEM is quickly evolving
as the buzzword in a new, technology-driven advertising
and on line marketing space. As a result, companies that
are serious about their internet presence are making
search engine marketing a key component in their
advertising campaign.
Google, Yahoo and MSN own the majority of the search
engine market share, with Google being the strongest. AOL,
Ask Jeeves and Altavista capture smaller shares in the
market, while a number of other geographically-specific
and market-specific search engines compete in their own
niches. In a study conducted in July 2005, Nielson/Netratings
reported that the search engine market share was highest
for Google at 48%. Yahoo and MSN had the market shares of
22% and 12% respectively.
MSN and Google were also the top destinations for most
online purchases, reported a study conducted by comScore
Networks (June 2005). The study highlighted that iMSN
searchers were 48% more likely to buy online than the
average Internet user. Google users were 42% more likely
to buy online than the average Internet user. It also came
to notice that while Google searches looked for more
sophisticated search terms, simple broad term searches
occurred for AOL, Yahoo and MSN.
One thing is becoming clearer today: Search engine
advertising is not another Internet bubble, it is driven
by users and the fact that people, everywhere, need to go
somewhere to search and find information. Take China for
example - who's heard of Baidu.com? Not too many people.
It's a Chinese search engine that has been around for 5
years and is the World's 6th most-visited Internet site,
thanks to China's fast growing internet market, currently
with more just over 100 million Web surfers. Baidu is
recently went through an initial public offering where is
share price when from $27 to $150 in the period of a day.
And what about Google? It recently reported quarterly
revenues of $1.4 billion. Google's revenues excluding its
payments for other Web sites in its advertising network
jumped to $890 million, an increase of 110% from a year
before and above the expected $842 million.
US Online Marketing Forecast: 2005 to 2010 by Forrester
Research (May 2005) revealed that the arena for search
engine marketing is all set to rise and will show growth
of 33% in 2005. Forecasts reveal that the figures will
reach $11.6 billion by 2010. Display advertising, which
includes traditional banners and sponsorships, will grow
at the average rate of 11% the next five years to $8
billion by 2010. US online advertising and marketing
spending will reach $14.7 billion in 2005, a 23% increase
over 2004. Trends also showed that while SEM is set to
become more effective than traditional marketing channels,
barriers include a lack of online advertising experience.
However, search engine marketing firms are embracing this
new branch of advertising and their customers are reaping
the extremely lucrative rewards.
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