Search Engine Marketing Up 44% in 2005

Advertisers in the U.S. and Canada spent $5.75 billion on Search Engine Marketing (SEM) in 2005, a 44 percent increase over 2004 spending, according to a report released today by the Search Engine Marketing Professional Organization (SEMPO). The report is based on an industry-wide survey of 553 respondents conducted in November 2005 by Radar Research, LLC and Intellisurvey. The survey found the bulk of the SEM spending was spent in 2005 on paid placement, accounting for 83 percent or $4.7 billion. While four out of five advertisers report they engage in organic search engine optimization (SEO), organic SEO accounted for approximately 11 percent of overall spending; paid inclusion accounted for just 4 percent of overall spending; and SEM technologies, including leasing, agency solutions and in-house development, accounted for less than 2 percent of overall spending.