Search engine marketing this year is projected to grow by 39% – the fastest growth of any online segment – according to a report from Outsell Inc.
The national study also found that Net marketing will rise by 18% this year, compared to a 5.8% growth rate for all US advertising.
The national study of advertisers, controlling about $6.5 billion of spending, shows that companies plan to increase their online spending by 18% this year, faster than for any other major media type. Advertisers also plan to raise their spending for advertising on search engines by 39%, the fastest of any online media method.
Study highlights include:
– While the largest recipient of ad dollars (40%), print advertising will continue to lose share as online’s share grows to 20%.
– Online advertising spending for pay-per-click (PPC) ads will fall one percent in 2007, while cost-per-action ads’ share will grow eight percent and online sponsorships’ share will rise 12%.
– Forty-nine percent of advertisers have reduced or plan to reduce their PPC spending because of click fraud, up from 37% in the Spring of 2006. Advertisers rate online advertising very effective for branding, contrary to common wisdom that online is effective at generating leads, but is weak for branding
– The share of TV/radio/movie ad spending will decline about 3.5% this year. Advertisers are redirecting more trade magazine ad dollars to events than they are moving to paid search.
Report by David Wilkening
