The Evolution Of Search Engine Marketing

The world of search engine marketing (SEM) is in constant evolution. With increased numbers of searchengines, and evolution in the techniques and technologies used, SEM is becoming a tool industries cannotafford 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 marketingspace. As a result, companies that are serious about their internet presence are making search enginemarketing 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-specificand market-specific search engines compete in their own niches. In a study conducted in July 2005, Nielson/Netratingsreported that the search engine market share was highest for Google at 48%. Yahoo and MSN had the marketshares of 22% and 12% respectively.

MSN and Google were also the top destinations for most online purchases, reported a study conducted bycomScore Networks (June 2005). The study highlighted that iMSN searchers were 48% more likely to buyonline than the average Internet user. Google users were 42% more likely to buy online than the averageInternet user. It also came to notice that while Google searches looked for more sophisticated searchterms, 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 isdriven 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 enginethat has been around for 5 years and is the World's 6th most-visited Internet site, thanks to China'sfast growing internet market, currently with more just over 100 million Web surfers. Baidu is recentlywent through an initial public offering where is share price when from $27 to $150 in the period of aday. And what about Google? It recently reported quarterly revenues of $1.4 billion. Google's revenuesexcluding its payments for other Web sites in its advertising network jumped to $890 million, an increaseof 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 forsearch engine marketing is all set to rise and will show growth of 33% in 2005. Forecasts reveal thatthe figures will reach $11.6 billion by 2010. Display advertising, which includes traditional bannersand sponsorships, will grow at the average rate of 11% the next five years to $8 billion by 2010. USonline 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 areembracing this new branch of advertising and their customers are reaping the extremely lucrative rewards.

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