UK Search Engine Marketing Landscape 2008 Linus Gregoriadis, Head of Research E-consultancy.com Email: [email_address] Website: www.e-consultancy.com

Research UK Search Engine Marketing Report Produced in association with Guava (Q2) Annual survey of digital marketers 1009 respondents, including 529 client-side and 359 agency respondents Search Engine Marketing Buyer’s Guide Market valuation and trends Profiles of leading UK agencies

UK Search Engine Marketing Report

Produced in association with Guava (Q2)

Annual survey of digital marketers

1009 respondents, including 529 client-side and 359 agency respondents

Search Engine Marketing Buyer’s Guide

Market valuation and trends

Profiles of leading UK agencies

Overview Search Valuation and Budgets Search Engines Search Activity and Search Services Objectives and Effectiveness Problems and Issues

Search Valuation and Budgets

Search Engines

Search Activity and Search Services

Objectives and Effectiveness

Problems and Issues

Search Market Valuation and Budgets

Buoyant market 9% of companies surveyed are spending more than £1 million annually on PPC. 16% of companies surveyed are spending at least £50,000 on SEO every year. More than 60% of companies (were) planning to increase PPC & SEO budgets. 31% of overall digital budget goes to search.

9% of companies surveyed are spending more than £1 million annually on PPC.

16% of companies surveyed are spending at least £50,000 on SEO every year.

More than 60% of companies (were) planning to increase PPC & SEO budgets.

31% of overall digital budget goes to search.

UK Search Market Value – 24% growth for ‘08 Source: E-consultancy Search Engine Marketing Buyer’s Guide

Although the search market is growing at a healthy pace, economic concerns have started to impact the industry. The idea that the search industry would be “recession-immune” may need revising. But ... economic worries increase scrutiny on search ad performance

Although the search market is growing at a healthy pace, economic concerns have started to impact the industry.

The idea that the search industry would be “recession-immune” may need revising.

Search Engines Some 86% of organisations surveyed are paying to appear on Google’s sponsored listings, showing that Google is maintaining its dominance of the search landscape

Google continues to attract the vast majority of advertisers’ search budgets. Google was ranked best for ROI, quality of traffic and for PPC management tools. To many marketers, this dominance raises concerns. Google continues to dominate the industry

Google continues to attract the vast majority of advertisers’ search budgets.

Google was ranked best for ROI, quality of traffic and for PPC management tools.

To many marketers, this dominance raises concerns.

Which search engines do you pay to advertise on (i.e. PPC?)

Search Activity and Search Services

Search engines are constantly changing their features and services. New forms of content (e.g. videos and blogs) have gained greater prominence in search results. Mobile search marketing will grow. Search engines and marketers forced to react to changing consumer behaviour

Search engines are constantly changing their features and services.

New forms of content (e.g. videos and blogs) have gained greater prominence in search results.

Mobile search marketing will grow.

iPhone browsing sessions: 6 times as much data consumed compared to average mobile session. Are longer : 2.8 mins vs. 1.6 mins for average users. iPhone users 20 times more likely than mobile users to use desktop version of search engine. Source: Australian Mobile Internet Insights study iPhone statistics …

iPhone browsing sessions:

6 times as much data consumed compared to average mobile session.

Are longer : 2.8 mins vs. 1.6 mins for average users.

iPhone users 20 times more likely than mobile users to use desktop version of search engine.

Source: Australian Mobile Internet Insights study

Search marketing has become more complex in recent years – and more competitive. Gains from optimising campaigns and integrating with other marketing activities e.g. TV, display advertising. Search marketers have been forced to gain expertise in other activities affecting the success of campaigns e.g. usability, web analytics. Complexity of search marketing increases as sector matures

Search marketing has become more complex in recent years – and more competitive.

Gains from optimising campaigns and integrating with other marketing activities e.g. TV, display advertising.

Search marketers have been forced to gain expertise in other activities affecting the success of campaigns e.g. usability, web analytics.

The most commonly offered SEO services are: Keyword research (86%) Competitor research (83%) Landing page development (81%) Copywriting (81%) The type of services agencies offer has changed

The most commonly offered SEO services are:

Keyword research (86%)

Competitor research (83%)

Landing page development (81%)

Copywriting (81%)

The biggest climber since last year is copywriting which is now a service offered by 81% of agencies compared to 69% in 2007 What SEO services do you offer clients?

The biggest climber since last year is copywriting which is now a service offered by 81% of agencies compared to 69% in 2007

The most commonly offered PPC services are: Keyword Research (82%) Landing page optimisation (76%) ROI tracking and analysis (74%) Competitor research (70%) The type of services agencies offer has changed

The most commonly offered PPC services are:

Keyword Research (82%)

Landing page optimisation (76%)

ROI tracking and analysis (74%)

Competitor research (70%)

The biggest climber since last year is contextual advertising, which is now a service offered by 53% of agencies compared to 47% in 2007 What PPC services do you offer clients?

The biggest climber since last year is contextual advertising, which is now a service offered by 53% of agencies compared to 47% in 2007

Objectives and Effectiveness The importance of branding as a primary objective of SEO has increased significantly, jumping from 36% in 2007 to 44% in 2008.

What are your primary objectives from Search?

What is more important in terms of impact on your brand?

Problems and Issues The rising cost of keywords prevents 38% of organisations from being more successful at Paid Search marketing. The biggest barrier to successful SEO is lack of resource.

Are rising CPC costs significantly impacting ROI from Paid Search?

The most commonly cited barriers to Paid Search success are: Keywords too expensive (38%) Lack of internal resource (36%) Lack of budget (34%) Poorly converting website (29%) Paid search problems

The most commonly cited barriers to Paid Search success are:

Keywords too expensive (38%)

Lack of internal resource (36%)

Lack of budget (34%)

Poorly converting website (29%)

The most commonly cited barriers to SEO success are: Lack of internal resource (45%) Difficulty of implementation (33%) Lack of budget (27%) Lack of know-how (25%) SEO problems

The most commonly cited barriers to SEO success are:

Lack of internal resource (45%)

Difficulty of implementation (33%)

Lack of budget (27%)

Lack of know-how (25%)

Questions? Linus Gregoriadis, Head of Research E-consultancy.com Email: [email_address] Website: www.e-consultancy.com