North American advertisers spent $9.4 billion on SEM in 2006, with $8 billion, or 86 percent of that going to paid search, and $1.1 billion, or 12 percent of overall spending to SEO. Those are the latest numbers from SEMPO's "The State of Search Engine Marketing 2006" report, released today.
We dig deeper into the results in today's SearchDay, but here are the top-line trends from the report:
- More than 76 percent of respondents take part in organic SEO activities, and 71 percent do paid search
- Participation in paid inclusion dipped to 20 percent, from 40 percent of respondents in 2005
- Both branding and direct sales continue to be top goals (both around 57 percent), but more are now measuring success of branding efforts in addition to direct response metrics, instead of trying to justify branding success with DR metrics
- SEM is poaching budget from other marketing channels -- especially from offline
- More companies are bringing some or all of their SEM efforts (paid and organic) in-house
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