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November 5, 2007

SEM Still Growing, And Becoming More Expensive

Marketing Sherpa’s “Search Marketing Study Results 2008” reveals some interesting statistics as well as some good direction for improving your program.

SEM IS STILL GROWING RAPIDLY – 31% IN U.S., 39% GLOBALLY FOR 2007

  • 43% of big spenders (more that $25,000/month) plan to increase budget by 11%
  • 35% of average spenders expect to increase by 11%
  • Many of these increases are for rising prices, not a desire to extend SEM reach. Smaller companies are feeling the pinch in paid search/keyword inflation.

SEO (ALONG WITH PR AND PRINT ADVERTISING), RECEIVED THE HIGHEST RATING FOR "HARD-TO-GAUGE EFFECTIVENESS"

  • Many marketers are not using the inexpensive analytics tools that are readily available

CLICK FRAUD IS STILL A CONCERN, BUT NOT AS MUCH TALK ABOUT IT AS LAST YEAR

  • The report presents a new way to evaluate Clicks and Click Fraud. Scoring is based on billions of clicks and a complex set of variables. Instead of black-and-white, good vs. bad methodology, the scoring system takes the next step by adding a layer of probability (i.e. A 3 am, click from South Korea is probably fraudulent, but there’s no way of knowing it definitely except in rare circumstances.)
  • For Search Engines, this new model could mean a way of charging more for good clicks, while offering discounts for low-quality traffic
  • For Search Marketers, it would offer protection against high prices for clicks that aren’t likely to generate sales

THE LENGTH OF THE URL IN A SEARCH LISTING AFFECTS THE LIKELIHOOD OF CLICKING

  • Viewers spend time trying to figure out what’s in a long URL and end up clicking on the ad immediately below it 2.5 times more often when viewing a listing with long URL
  • A short URL keeps the focus on the TITLE of the listing where you’re more likely to have success with those searching for your product/service.