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JupiterResearch Finds That Continued Growth in Search Marketing Complexity Will Contribute to SEM Outsourcing

Posted on: Tuesday, 6 June 2006, 09:00 CDT

JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, finds that the share of search marketers with annual revenues of $15 million or more has risen from 25 percent in 2005 to 37 percent in 2006. According to the new JupiterResearch report, "US SEM Executive Survey, 2006," the number of marketers using bid management and Web analytics tools has risen from 19 percent last year to 26 percent this year.

"The continued growth in size and complexity of search campaigns will spur search engine marketing (SEM) outsourcing," said Sapna Satagopan, Research Associate at JupiterResearch and lead author of the report. "More than fifty percent of large marketers outsource at least one of their search marketing services."

The report also finds that spending on search marketing jumped in 2005. Almost 24 percent of search marketers spent more than $500,000 on SEM campaigns in 2005, compared with 12 percent in 2004. The growth in the size of spending will push the competition as well, forcing smaller marketers to optimize their campaign to compete in the search marketplace.

This year, 66 percent of marketers plan to increase search spending. This number climbs to 72 percent when referring to sophisticated marketers, or those who use bid management tools and Web analytics packages. One of the factors contributing to the surge in spending is the increasing cost of traffic.

"Half of search marketers rank Web site traffic as their preferred metric for measuring success," said David Schatsky, President of JupiterKagan. "There is an increasing cost associated with this traffic, primarily driven by the rise in keyword prices and the cost of expanding to new search providers."

The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For additional information on this report or JupiterResearch's Marketing and Advertising research service, visit www.jupiterresearch.com or contact Kieran Kelly, Vice President of Global Sales and Client Service, at 1-800-481-1212 or researchsales@jupitermedia.com.

About JupiterResearch

JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit www.jupiterresearch.com. JupiterResearch is a division of JupiterKagan, Inc.

About JupiterKagan, Inc.

JupiterKagan, Inc. was formed in 2006 from the merger of JupiterResearch and Kagan Research, two companies providing thought leadership, research and advice in the domain of the media and telecommunications, Internet, and emerging consumer technologies. The company's deliverables include continuous information services (available by subscription), research reports, data, inquiries with research analysts, appraisals, litigation support and consulting. JupiterKagan operates from six offices in the United States, United Kingdom, France and Germany. For more information, visit www.jupiterkagan.com.

Source: Business Wire

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