Spending on search marketing to rise, says E-consultancy
Despite the impact of the credit crunch, UK spending on PPC and optimisation are forecast to rise strongly in 2008.
Expenditure on search engine marketing (SEM) in the UK will surge by 24 per cent this year, E-consultancy has predicted in a new report.
The Search Engine Marketing Buyer’s Guide 2008 has suggested that total expenditure could hit £2.75 billion by the end of the year, with search engine optimisation accounting for £330 million of this – up 32 per cent over 2007.
However, the bulk of SEM spending will go towards managed pay per click, according to the report – it stated that paid search is likely to attract £2.24 billion of spending, representing a rise of 23 per cent compared with last year, Precision Marketing reports.
Chris Lake, editor-in-chief of E-consultancy, explained that the predicted growth is somewhat low compared with that seen in recent years, mostly due to the effects of a tightening economy.
Despite this, he said: “Consumer internet usage is flattening out, but the sector is certainly more robust than other media channels that have a less measurable return on investment and should continue to grow for years to come.”
The fact that most SEM spending goes on paid search appears to be disproportionate considering research showing that up to seven in ten of click-throughs from search listings take place for organic results, Search Engine Watch’s Mark Jackson recently noted.