Search Spend Jumps 44% in 2005




New SEMPO study, via MarketingVOX, shows a 44% jump in search engine marketing spend with $5.75 billion spent in 2005.

The survey found that 83 percent of SEM spending, or $4.7 billion, was spent in 2005 on paid placement.

At first glance, you’d think the money was in PPC, but let’s take another look. $4.7b spent on PPC, at an average agency rate of 10%, results in $470 million in PPC management fees. Compare that to the more than $643 million collected for SEO fees.

SEMPO found that 62 percent of search marketers said branding was the primary objective of search campaigns, but nearly as many – 60 percent – said selling was a key objective.

I’d be curious to see what percentage of the 553 respondents represented Fortune 1000-sized companies? They tend to have a higher demand for branding than smaller companies.