Search marketing tops $9 billion in ’06

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Wakefield, Mass.—North American spending on search engine marketing last year totaled $9.40 billion, according to the Search Engine Marketing Professional Organization's annual State of Search Engine Marketing report, released Thursday. Paid search accounted for 86% of the spending. Search engine optimization, also known as organic search, accounted for 12%, and paid inclusion accounted for 1%.
Search marketing is drawing budget dollars away from other marketing channels, particularly offline channels, according to SEMPO. This is a change from 2005, when funds were shifted mostly from online media.
Twenty percent of advertisers surveyed by SEMPO said they are shifting money to search from print magazine ads, 16% are shifting direct mail dollars, 13% are shifting TV spot dollars, and 13% are moving funds from the print newspaper ad budget.
—Carol Krol

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