Search Spend Growth Drops Below 30%; Mocks the Recession
Take a look at these two headlines:
Time to call it quits as an online marketer and find a new job? Hardly!
Whenever you see headlines like this, be sure to read the entire article. In this case, you’d see that the "weakness" and "slows" in online advertising are still much healthier than other industries; say real estate or the auto industry.
So, what’s up with the state of the online advertising industry? Well, in the UK…
[E-consultancy’s] 2008 search engine marketing buyer’s guide, released this week, predicts that SEM spend in the U.K. will rise by 24 percent in 2008, down from 58 percent year on year growth in 2007 and 65 percent growth in 2006.
Total spend is therefore predicted to reach around £2.75 billion ($4.9 billion) this year, up from a £2.2 billion ($3.9 billion) spend in 2007.
Not bad, considering the size of the industry. Also, SEO spend is still expected to achieve 32% growth in 2008 (in the UK).
Even in the US–which is arguably in a recession–online advertising spend still continues to grow, albeit less quickly. And, when you look at the paid search channel, analysts are still predicting 27% growth in 2008 and 26% growth in 2009. Not bad, eh?
Sure, the online marketing industry will be impacted by economic conditions, but I wouldn’t panic and go get your real estate license just yet. 😉