A new white paper from UK-based search marketing firm Latitude Group says that search engines are missing out on $11 billion of potential revenues “if paid search penetration in the US was at UK levels.”
Why? “The US has a much higher proportion of in-house search marketers, who tend to be less innovative and do not operate search as effectively as search agencies, slowing the flow of funds from other media,” according to the white paper, authored by Latitude Group’s chief executive officer Dylan Thwaites.
Other key findings include:
- Search engine commissions have had a fire starter effect on search penetration in the UK
- US search agencies have reacted slowly to the paid search opportunity
- Cost-per-click prices are marginally higher in the UK, but there is no evidence to show that the engines are
- abusing their market dominance
The white paper is summarized in this press release (PDF); you can also download the complete white paper, An Analysis Of The $11bn Revenue Shortfall In The US Search Marketing Industry (PDF).