SEMPO Survey: SEO More Popular than Paid Search

Here are highlights from SEMPO's 2005 Annual State of Search Dana Todd call it at SES Chicago, "the SEMPO Big Ass Survey".

• SEM was a $5.75 billion industry in North America in 2005, and will grow to $11.1 billion in 2010

• Brand awareness is advertisers' top objective for SEM programs, particularly large firms

• Organic SEO is the most popular form of SEM, with 4 out of 5 advertisers using this method, with paid placement a close second at 76%

• ROI is in line with inflation: Four out of five advertisers say they could afford to pay a mild increase in the price of paid placement, while of advertisers and all agencies report moderate price hikes this year.

• SEM is poaching budget from other marketing channels for the vast majority of advertisers - especially from affiliate marketing and web site development.

• Senior executives consider SEM a high business priority with almost half of advertiser respondents (47%) saying that senior management at their companies were "very involved" in SEM programs, especially among companies with fewer than 500 employees

• Most advertisers plan to manage the majority of their SEM spending in-house in 2006. SEM agencies may see a decline in business as a result.
The full report will become available early 2006, first to 2004 State of Search Marketing survey. Lee Odden is President and Founder of Online Marketing Blog offering daily news, interviews and best practices.