The Evolution of Search Engine Marketing

Posted on May 30

The Evolution of Search Engine Marketing The world of search
engine marketing (SEM) is in constant evolution. With increased
numbers of search engines, and evolution in the techniques and
technologies used, SEM is becoming a tool industries cannot
afford to do without. Trends all over the world show that the
pressure for SEM services is starting to come from their
customers. Indeed, SEM is quickly evolving as the buzzword in a
new, technology-driven advertising and on line marketing space.
As a result, companies that are serious about their internet
presence are making search engine marketing a key component in
their advertising campaign.

Google, Yahoo and MSN own the majority of the search engine
market share, with Google being the strongest. AOL, Ask Jeeves
and Altavista capture smaller shares in the market, while a
number of other geographically-specific and market-specific
search engines compete in their own niches. In a study conducted
in July 2005, Nielson/Netratings reported that the search engine
market share was highest for Google at 48%. Yahoo and MSN had
the market shares of 22% and 12% respectively.

MSN and Google were also the top destinations for most online
purchases, reported a study conducted by comScore Networks (June
2005). The study highlighted that iMSN searchers were 48% more
likely to buy online than the average Internet user. Google
users were 42% more likely to buy online than the average
Internet user. It also came to notice that while Google searches
looked for more sophisticated search terms, simple broad term
searches occurred for AOL, Yahoo and MSN.

One thing is becoming clearer today: Search engine advertising
is not another Internet bubble, it is driven by users and the
fact that people, everywhere, need to go somewhere to search and
find information. Take China for example – who’s heard of
Baidu.com? Not too many people. It’s a Chinese search engine
that has been around for 5 years and is the World’s 6th
most-visited Internet site, thanks to China’s fast growing
internet market, currently with more just over 100 million Web
surfers. Baidu is recently went through an initial public
offering where is share price when from $27 to $150 in the
period of a day. And what about Google? It recently reported
quarterly revenues of $1.4 billion. Google’s revenues excluding
its payments for other Web sites in its advertising network
jumped to $890 million, an increase of 110% from a year before
and above the expected $842 million.

US Online Marketing Forecast: 2005 to 2010 by Forrester Research
(May 2005) revealed that the arena for search engine marketing
is all set to rise and will show growth of 33% in 2005.
Forecasts reveal that the figures will reach $11.6 billion by
2010. Display advertising, which includes traditional banners
and sponsorships, will grow at the average rate of 11% the next
five years to $8 billion by 2010. US online advertising and
marketing spending will reach $14.7 billion in 2005, a 23%
increase over 2004. Trends also showed that while SEM is set to
become more effective than traditional marketing channels,
barriers include a lack of online advertising experience.
However, search engine marketing firms are embracing this new
branch of advertising and their customers are reaping the
extremely lucrative rewards.

About the Author Justin is the VP Business Development of Ms.
SEO Inc., a Calgary based Search Engine
Optimization & Internet Marketing Company.
Ms. Seo Inc.
works with their sister company Ms. Hype Inc.,
a Calgary Web Design Company,
and their parent company Cre8
Hype Solutions Inc., a Calgary based Internet
Marketing Company,
to offer their clients a powerful online
presence.

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