SEMPO Releases North American Search Report

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

About the author

Kevin Newcomb joined ClickZ in August 2004, covering search marketing and other online marketing topics. He has been reporting on web-based businesses since 2000.

Before the bubble burst, Kevin was a marketing manager for an online computer reseller, handling copywriting, e-mail marketing, search marketing and running the affiliate program.

With a combination of real-world marketing experience and years of business journalism, Kevin brings to ClickZ a unique ability to deliver news and training materials that help online marketers do their jobs better.