Sample SEMPO State of Search Marketing Report 2012

Market Data / Supplier Selection / Event Presentations / User Experience Benchmarking / Best Practice / Template Files / Trends & Innovation

SAMPLE: State of Search Marketing Report 2012

in association with SEMPO

Sample only, please download the full report from:

http://econsultancy.com/reports/state-of-search


SAMPLE: State of Search Marketing Report 2012

Econsultancy New York

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Telephone:

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http://econsultancy.com

[email protected]

Econsultancy London

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United Kingdom

Telephone:

+44 (0)20 7269 1450

All rights reserved. No part of this publication may be

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or any information storage and retrieval system, without

prior permission in writing from the publisher.

Copyright © Econsultancy.com Ltd 2012

Published September 2012

State of Search Marketing Report 2012 in association with SEMPO Page 3

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and

retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012

Contents

1. Executive Summary and Highlights ............................. 5

2. Introduction by SEMPO ................................................ 9

3. Methodology and Sample............................................ 10

3.1. Methodology ............................................................................. 10

3.2. Respondent profiles .................................................................. 10

4. Findings ........................................................................ 11

4.1. Significance of different trends and technologies ...................... 11

4.2. Factors in new channel adoption ............................................... 13

SEO, Paid Search, and Social Media ............................................................14

4.3. Objectives and metrics............................................................... 14

4.3.1. Ability to calculate ROI ....................................................................14

4.3.2. Objectives for search engine optimization ..................................... 15

4.3.3. Objectives for paid search................................................................16

4.3.4. Objectives for social media marketing ........................................... 17

4.3.5. Metrics for measuring search engine optimization ...................... 18

4.3.6. Metrics for measuring paid search marketing .............................. 20

4.3.7. Metrics for measuring social media marketing ............................ 22

4.4. Budgets ..................................................................................... 24

4.4.1. Direction of digital marketing budgets .......................................... 24

4.4.2. Budget for search engine optimization in 2012 ............................ 25

4.4.3. Change in budgets for search engine optimization ...................... 26

4.4.4. Expected search engine optimization billings .............................. 28

4.4.5. Budget for paid search in 2012 ...................................................... 29

4.4.6. Change in budgets for paid search .................................................. 31

4.4.7. Flexibility in paid search budgeting............................................... 33

4.4.8. Expected paid search billings ......................................................... 34

4.4.9. Proportion paid to SEM service providers .................................... 35

4.4.10. Budget for social media marketing in 2012 ............................... 37

4.4.11. Change in social media spend..................................................... 38

4.4.12. Expected social media billings .................................................... 40

4.5. Search engines ........................................................................... 41

4.5.1. Web properties used for PPC advertising ......................................41

State of Search Marketing Report 2012 in association with SEMPO Page 4



4.5.2. Change in investment in search engines ....................................... 42

4.5.3. Return on investment from search engines .................................. 44

4.6. Social media and search marketing alignment ......................... 46

4.6.1. Use of social and search marketing activity .................................. 46

4.6.2. Impact of social media on search marketing ................................ 48

4.6.3. Use of social media sites ................................................................. 50

4.7. Resourcing and outsourcing ..................................................... 52

4.7.1. Employees with responsibility for search engine marketing ....... 52

4.7.2. Search engine optimization service provision .............................. 53

4.7.3. Paid search marketing service provision ....................................... 54

4.7.4. Social media marketing service provision ..................................... 55

4.7.5. Use of technology for paid search .................................................. 56

4.7.6. Use of technology for paid search .................................................. 57

4.7.7. Typical fee structure for search engine optimization ................... 58

4.7.8. Typical fee structure for paid search marketing ........................... 59

4.7.9. Typical fee structure for social media marketing ......................... 60

4.7.10. Challenges for managing search engine optimization ...............61

4.7.11. Challenges for managing paid search marketing ...................... 62

4.7.12. Challenges for managing social media marketing .................... 63

5. Appendix: Respondent Profiles .................................. 64

5.1. Respondent titles ...................................................................... 64

5.2. Business sector ......................................................................... 65

5.3. Business focus .......................................................................... 66

5.4. Marketing channel usage by organization type ........................ 67

5.5. Type of organization ................................................................. 68

5.6. Type of agency .......................................................................... 69

5.7. Geography ................................................................................ 70

5.8. Size of company by revenue ....................................................... 71

5.9. Size of company by number of employees ................................ 72

SAMPLE: State of Search Marketing Report 2012 Page 6



1. Executive Summary and Highlights The SEMPO State of Search Marketing Report 2012, published by Econsultancy for the third

year running, is based on a global online survey of nearly 900 companies and agencies. This year’s

SEMPO study – now in its eighth year – is an aggregation of information provided by organizations

from 49 different countries, and from marketers across a range of business sectors and types of

agencies.

Market valuation

SEMPO and Econsultancy estimate that the North American search engine marketing industry1 will

reach a value of nearly $23B by the end of 2012, having grown by nearly 19%, up from $19.3B in 2011.

This is the second straight year when SEM has managed to increase its growth rate from the

doldrums of 2009 when growth reached a low of 8%.

Taking advantage of mid-year data, we’re also able to provide a preliminary estimate for 2013, when

we expect growth to be approximately 17%. While this represents a reduction in the pace of growth, it

will likely still represent the highest rate of increase of any significant marketing channel offline or

online (mobile and social will no doubt grow more quickly, for example, but at far lower budget

levels.)

1 This valuation includes money spent on paid search marketing and search engine optimization (natural search), and also spending on search engine marketing technology. It excludes social media marketing spending, except for money spent with social networks on PPC advertising.

4.1 5.8

9.5

12.2 13.5

14.6

16.6

19.3

22.9

26.8

0

5

10

15

20

25

30

2004 2005 2006 2007 2008 2009 2010 2011 2012PartialYear

2013Projected

Value of the North American Search Industry 2004 - 2013 (in billions of US dollars)




Key findings

Changes to the Google algorithm affected a large percentage of marketers, or at least has

them concerned. 87% call the updates of the last 12-18 months “significant or highly significant.”

In most cases marketers feel the overall effect to be positive, but success in combating SEO spam

sites has come at the expense of many legitimate brands.

Related Econsultancy reports and content

SEO Trends: Issues and Opportunities

http://econsultancy.com/reports/seo-trends-issues-and-opportunities

Search Engine Optimization Best Practice Guide

http://econsultancy.com/reports/search-engine-optimization-seo-best-practice-guide

Paid Search Marketing Best Practice Guide

http://econsultancy.com/reports/paid-search-marketing-ppc-best-practice-guide

Search Engine Marketing: SEO - Digital Template files

http://econsultancy.com/reports/search-engine-marketing-seo-digital-marketing-template-files

Search Engine Marketing: Paid Search – Digital Template files

http://econsultancy.com/reports/search-engine-marketing-ppc-digital-marketing-template-files



http://econsultancy.com/reports/seo-trends-issues-and-opportunities

http://econsultancy.com/reports/search-engine-optimization-seo-best-practice-guide

http://econsultancy.com/reports/paid-search-marketing-ppc-best-practice-guide

http://econsultancy.com/reports/search-engine-marketing-seo-digital-marketing-template-files

http://econsultancy.com/reports/search-engine-marketing-ppc-digital-marketing-template-files





2. Methodology and Sample

2.1. Methodology The State of Search Marketing Report is based on an online survey of nearly 900 client-side

(advertisers) and agency respondents. The survey was live between March 12th and May 15th 2012.

SEMPO and Econsultancy promoted the survey to their respective members, offering a

complimentary copy of this report as the incentive for taking part.

We would like to thank those who took the time to complete the questionnaire, and also SEMPO

members who promoted the survey to their clients. If you have any questions about the research and

methodology, please contact us via email at Research [at] Econsultancy.com.

2.2. Respondent profiles A total of 883 respondents from 36 countries took part in the survey, with US-based respondents

accounting for 64% of the total. The sample included 272 advertisers and 611 supply-side respondents

(mainly agencies) carrying out search marketing and social media activity on behalf of clients. For

many questions, analysis of the two groups has been separated; the distinction is abbreviated to

‘companies’ (including not-for-profit organizations) and ‘agencies’.

For a detailed profile of this year’s respondents, see Section 5.







3. Findings

3.1. Significance of different trends and technologies The explosion of mobile internet usage continues to be the trend most concerning search marketers;

88% rate the trend as significant or highly significant. No industry or category is immune, and few

companies are happy with their mobile usability or analytics. As search becomes something used by

mobile, social people in specific but changing locations, techniques that were calibrated towards

individuals sitting at a desk are gradually being outmoded.

Companies

Figure 1: In the context of your search marketing efforts, how would you describe the

impact of the following trends and technologies?

Respondents: 272

47% 39%

29% 27% 25% 23% 22% 8%

41% 48%

30% 44% 49% 47%

38%

29%

13% 13%

41% 29% 26% 30%

39%

63%

0%

20%

40%

60%

80%

100%

Highly significant Significant Not significant







Agencies, with a broader focus than individual companies, are somewhat more concerned with the

rise of local search, but in general recognize the same set of priorities at similar levels.

Agencies

Figure 2: In the context of your search marketing efforts, how would you describe

the impact of the following trends and technologies?

Respondents: 611

55% 45% 44%

33% 33% 28% 26%

9%

37%

42% 42% 50% 45%

50% 50%

37%

8% 13% 15% 17% 22% 22% 24%

55%

0%

20%

40%

60%

80%

100%

Highly significant Significant Not significant







SEO, Paid Search, and Social Media

3.2. Objectives and metrics

3.2.1. Ability to calculate ROI

Companies

Figure 3: How would you rate your organization’s ability to evaluate the return on

investment for the following marketing channels?

Respondents: 270

79%

57% 47% 44%

37%

15%

18%

34%

37% 45%

38%

45%

3% 10%

15% 11%

25%

40%

0%

20%

40%

60%

80%

100%

Good Okay Poor







3.3. Budgets

3.3.1. Direction of digital marketing budgets

Companies

Figure 4: Change in digital marketing budgets 2012 – 2013

Respondents: 327

While marketing and advertising budgets in general have been in a state of decline or at least flux,

digital has managed to maintain its growth. After more modest gains over the last several years, the

incline appears to be steepening. The percentage of respondents expecting “significant” growth in

2013 is a full 50% higher than those evaluating the current year.

26%

51%

16%

5% 2%

0%

37%

49%

10%

2% 2% 0%

0%

10%

20%

30%

40%

50%

60%

Significantgrowth

Some growth No change Somedecrease

Significantdecrease

No investment

2012 2013 Projected







3.4. Search engines

3.4.1. Web properties used for PPC advertising

The chart below underlines the unsurprising prominence of Google, with the vast majority of

responding advertisers saying they run PPC campaigns throughout Google’s search and content

environment.

Companies

Figure 5: On which of the following web properties do you run PPC campaigns?

Respondents: 264

98%

86%

74% 73% 73% 74%

33%

N/A

17% 15%

8%

97%

85%

74% 70%

65%

56%

24% 18%

10% 10% 10%

0%

20%

40%

60%

80%

100%

2011 2012







3.5. Social media and search marketing alignment

3.5.1. Use of social and search marketing activity

Companies

Figure 6: What best describes your use of social media in the context of your search

engine marketing activity?

Respondents 2010: 389 | Respondents 2011: 245 | Respondents 2012: 218

33%

49%

18%

29%

58%

13%

33%

60%

7%

0%

20%

40%

60%

80%

Social media is very muchpart of our search activity

We treat social media andsearch engine marketing

separately

We don't do any social mediamarketing

2010 2011 2012







3.6. Resourcing and outsourcing

3.6.1. Employees with responsibility for search engine marketing

The teams devoted to search continue to grow, as do search budgets and the percentage of companies

managing some or all of their programs in-house.

Companies

Figure 7: How many people inside your organization have any responsibility for

search engine marketing?

Respondents 2010: 396 | Respondents 2011: 246 | Respondents 2012: 182

1%

32%

29%

16%

9% 7%

5%

2%

30%

24%

16%

8%

13%

7%

0%

21%

30%

11%

7%

15% 16%

0%

20%

40%

0 1 2 3 4 5-10 More than10

2010 2011 2012







4. Appendix: Respondent Profiles

4.1. Respondent titles

Figure 8: What is your title?

Respondents: 718

14%

29%

22%

6%

12%

18%

0%

5%

10%

15%

20%

25%

30%

35%

Analyst Manager Director VP C Level Other (pleasespecify)







4.2. Business sector The three best represented sectors in our survey this year were retail trade, high tech, and business

or personal services.

Figure 9: In which business sector is your organization?

Respondents: 241

24%

14%

9% 8% 6% 5%

4% 2% 1% 0

28%

0%

20%

40%




Sample SEMPO State of Search Marketing Report 2012

Business

typical fee

run ppc campaigns

search marketing

search engine

search engine

social media

paid search

social media