The SEMPO report, “2007 State of the Market,” found that search spending is increasing at the expense of print magazine advertising, Web site development, direct mail and other marketing programs.
The North American SEM industry grew from $9.4 billion in 2006 to $12.2 billion in 2007, exceeding the forecast of $11.5 billion. Spending is projected to grow to $25.2 billion in 2011, up significantly from the $18.6 billion forecast a year ago.
Paid placement captured 87.4% of 2007 spending; organic search engine optimization, 10.5%; technology investment, 1.4%; and paid inclusion, 0.07.
The online survey by Radar Research was completed by 867 search engine advertisers and SEM agencies, and administered via IntelliSurvey.