Study: Huge Potential SEM Spend Untapped


A new JupiterResearch, Marin Software-sponsored study has found some surprising things about large-search marketers and their SEM spending: more than 90 percent would spend as much as 22 percent more — if they had better tools and technology to manage complex campaigns. That potentially represents hundreds of millions — even billions — of dollars that are untapped by the industry because technology isn’t keeping pace with the needs and demands of the industry’s larger marketers.

The study, called “Large-scale Paid Search: Challenges and Opportunities,” surveyed 103 agencies and advertisers spending at least $50,000 per month in paid search:

  • 53 percent of respondents were spending between $50,000 –$250,000 per month
  • 30 percent spent between $250,000 –$1 million
  • 17 percent spent over $1 million per month on search marketing

The challenges and pain seemed to be greatest for those spending the most money on search ($500K+ per month). According to the survey:

  • 78% believe managing large keyword lists is cumbersome
  • 59% say they have insufficient personnel to manage their paid search campaigns
  • 69% said existing applications are not robust enough for their needs

Many critical SEM functions, according to the survey, are “still” being managed with Excel:

Despite the complexity of managing large SEM campaigns, 79 percent of survey respondents reported spending more on paid search management every year. The majority of the advertiser (as opposed to agency) respondents also said that increasing use of search/PPC campaigns is a “top priority.”

In the most recent IAB report, paid search increased its share of the online ad spend in the first half of 2008 to 44 percent, compared with 41 percent a year ago. Search appears to be holding up reasonably well, at least vs. other online ad categories (i.e., display), in a bad economy.

We’ll see when Google reports its Q3 results tomorrow and Yahoo next week. I’m sure they wouldn’t mind a piece of that 22 percent (potential) additional PPC spend that appears to be waiting there — on the table.



Greg Sterling is a Contributing Editor at Search Engine Land, and writes a personal blog Screenwerk, examining the broader world of media and advertising. He also posts at a Local Mobile Search, which is focused on the mobile Internet.

See more articles by Greg Sterling >


Share, Bookmark & Discuss This Article
More:


Keep Updated: News Via Email | News Via RSS Feed | News Via Twitter


See more stories like this in the Members Library! Check out the SEM Industry: General, SEM Industry: Stats sections of the Members Library where this story is filed. Members also get access to exclusive video content, a members-only weekly & monthly newsletter, plus more. Check out all the benefits!

Comments are closed.


RECENT COMMENTS

  • dian said " I haven't tried that yet but if it is the way Mazter is saying I think it won't going to do any good"
  • dian said " It really helps me a lot. The methods step by step explained the important factors easily and all th"
  • T Campbell said " Ah, that's SPIDER-Man, said the comics guy."

See All »


FREE DAILY SEARCH NEWS RECAP!

Stay on top of all the search news with our daily summary, the SearchCap newsletter. View a sample ›

STAY CURRENT THROUGHOUT THE DAY

RSS Feeds

The Search Engine Land feed keeps you informed as news happens. SEE ALL FEEDS »

Upcoming Search Engine Land Conferences

Advertise With Us »

Search Engine Land produces SMX, the Search Marketing Expo conference series. SMX events deliver the most comprehensive educational and networking experiences - whether you're just starting in search marketing or you're a seasoned expert.


SMX Web Site » | SMX Difference » | SMX News »


Join us at an upcoming SMX event:

Search Marketing Now Learn more about search marketing with our free online webcasts and webinars from our sister site, Search Marketing Now. Upcoming online events include:


See more webcast topics »

TRACK US SOCIALLY
Upcoming Search Engine Land Conferences

Get Your Search Engine Land
Premium Membership!

Become a premium member today and receive:

  • Express commenting privileges & photo.
  • Exclusive videos & newsletters.
  • Discounts to our SMX conferences.
  • Access to "How To" & Other Archives.

Learn More

Upcoming Search Engine Land Conferences
Add to GoogleAdd to My Yahoo!Add to BloglinesAdd to NetvibesAdd to Windows Live