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Online Search , 2004
eMarketer, Feb 2004, Pages: 109


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The Search Engine Marketing report provides an objective, balanced look inside the supercharged world of search advertising. While the media has gone bonkers over the paid search phenomena -- and it is pulling in a big share of online ad dollars -- it is only one element of search marketing covered in this report:

- Organic Search

- Paid Placement

- Paid Inclusion

Last year's 123% growth rate for paid search ad spending was impressive, but the report also highlights the other elements of the search marketing process that should not be overlooked. Optimizing a Web site for organic search is just as important as paying for position -- especially as the cost of keywords rises. Even when paying for clicks, consider contextual search -- but only when the value makes it compelling. If your product or service lends itself to local search, the coming year is a great time to get on the bandwagon.

The Search Engine Marketing report answers these key questions:

- Why is online search marketing so hot?

- Is your company positioned to take full advantage of paid search advertising?

- What types of companies are properly positioned to take advantage of search?

- How do you create effective landing pages?

- What are consumers' primary search patterns?

- What is best for driving your business: paid or organic search?

- Should you consider both paid and organic options?

- What is paid inclusion, and who offers it?

- What is contextual search?

- What new trends are reshaping search engine marketing?

- How soon will the trends in the market have an impact on business?

- And many more...

What follows is an example of the type of broad-based, comparative information you will find in the report:

Search Spending and Costs

Online search's exceptional targeting capability is why this report expects advertising paid search revenues to surpass $2.5 billion in 2004 and reach nearly $3 billion by the end of next year. At that point, nearly 35% of the total online ad spend will go to search.

Other analysts point to similar, or even greater, upswings for search spending.

Forrester Research's Charlene Li puts paid search spending at roughly $1.7 billion in 2003, growing about 40% to $2.4 billion this year, and predicts growth will taper off into the middle or low teens in 2007 and 2008.

US Bancorp Piper Jaffray's Safa Rashtchy, who covers the search market closely, forecasts online search becoming a '$7 billion industry worldwide by 2007.'

Yahoo!'s Jeff Weiner, Senior VP for Search, said at the November 2003 Ad:Tech conference in New York that paid search spending will reach 'four to five billion in the US alone' in a few years.

And Morgan Stanley's Mary Meeker predicts that paid search and inclusion revenues will rise from $1.0 billion in 2001 to $5.0 billion by 2006.

You will find many more charts, graphs, comparisons and analysis of this kind inside this Search Engine Marketing report.

Information Sources

- American Customer Satisfaction Index (ACSI)
- Arbitron
- BizRate.com
- BtoB Magazine
- BURST! Media
- comScore Media Metrix
- comScore Networks Inc.
- ConStat
- Direct Marketing Association
- Edison Media Research
- eMarketer
- Forrester Research
- Google
- Harris Interactive
- Havas
- Hitwise
- Interactive Advertising Bureau (IAB)
- iProspect
- Jupiter Media Metrix, Inc.
- JupiterResearch
- Kelsey Group
- London Business School
- META Group
- Morgan Stanley
- National Association of College Stores (NACS)
- Nielsen ReelResearch
- Nielsen//NetRatings
- OneStat.com
- Overture.com
- PlanetFeedback
- PricewaterhouseCoopers (PwC)
- SearchEngineWatch.com
- Shop.org
- the e-tailing group
- Universal McCann
- US Bancorp Piper Jaffray
- WebSideStory
- WebTrends
- Yankee Group



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