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 websites 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., Calgary Web Design
Company, and their parent company Cre8 Hype Solutions
Inc., Canada Web Design Company a Calgary based
Internet Marketing Company, to offer their clients a
powerful online presence. |
