Study: Search engine marketing up 44% in 2005

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Wakefield, Mass.—Advertisers in the U.S. and Canada spent $5.75 billion on search engine marketing in 2005, a 44% increase compared with 2004, according to a report released Monday by the Search Engine Marketing Professional Organization.

SEMPO is a nonprofit professional association working to increase awareness and promote the value of search engine marketing worldwide. In its report, “The State of Search Engine Marketing 2005,” it projects that search engine marketing spending in North America will reach $11 billion in 2010.

The report tallies payments to search engines and search-related media companies, search engine marketing agencies and in-house expenditures in support of such programs. The programs include paid placement, paid inclusion, organic search engine optimization and search engine marketing technology platforms.

The report, based on a survey conducted in November by Radar Research and Intellisurvey, found paid placement accounted for 83%, or $4.7 billion, of search engine marketing spending in 2005.

—Matthew Schwartz

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