Sample SEMPO State of Search Marketing Report 2012

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The State of Search Marketing Report 2012, produced by Econsultancy in association with SEMPO, looks in-depth at how companies are using paid search, search engine optimization (natural search) and …

The State of Search Marketing Report 2012, produced by Econsultancy in association with SEMPO, looks in-depth at how companies are using paid search, search engine optimization (natural search) and social media marketing.

The findings cover spending, current challenges, use of specific search engines and emerging trends across paid search, SEO and social media.

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  • 1. Market Data / Supplier Selection / Event Presentations / User Experience Benchmarking / Best Practice / Template Files / Trends & InnovationSAMPLE: State of SearchMarketing Report 2012in association with SEMPO Sample only, please download the full report from: http://econsultancy.com/reports/state-of-search
  • 2. SAMPLE: Stateof SearchMarketingReport 2012Published September 2012 Econsultancy New York Econsultancy London 350 7th Avenue, Suite 307 4th Floor, Farringdon Point New York, NY 10001 29-35 Farringdon RoadAll rights reserved. No part of this publication may be United States London EC1M 3JFreproduced or transmitted in any form or by any means, United Kingdomelectronic or mechanical, including photocopy, recording Telephone:or any information storage and retrieval system, without +1 212 971 0630 Telephone:prior permission in writing from the publisher. +44 (0)20 7269 1450 http://econsultancy.comCopyright © Econsultancy.com Ltd 2012 help@econsultancy.com
  • 3. 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 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
  • 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 .................... 635. 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 ................................ 72State of Search Marketing Report 2012 in association with SEMPO Page 4All 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 andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
  • 5. 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%. Value of the North American Search Industry 2004 - 2013 30 (in billions of US dollars) 26.8 25 22.9 19.3 20 16.6 14.6 15 13.5 12.2 9.5 10 5.8 5 4.1 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Partial Projected Year 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.) 1This 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. SAMPLE: State of Search Marketing Report 2012 Page 6 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
  • 6. 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. Sample only, please download the full report from: http://econsultancy.com/reports/state-of-searchRelated Econsultancy reports and contentSEO Trends: Issues and Opportunitieshttp://econsultancy.com/reports/seo-trends-issues-and-opportunitiesSearch Engine Optimization Best Practice Guidehttp://econsultancy.com/reports/search-engine-optimization-seo-best-practice-guidePaid Search Marketing Best Practice Guidehttp://econsultancy.com/reports/paid-search-marketing-ppc-best-practice-guideSearch Engine Marketing: SEO - Digital Template fileshttp://econsultancy.com/reports/search-engine-marketing-seo-digital-marketing-template-filesSearch Engine Marketing: Paid Search – Digital Template fileshttp://econsultancy.com/reports/search-engine-marketing-ppc-digital-marketing-template-files SAMPLE: State of Search Marketing Report 2012 Page 7 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
  • 7. 2. Methodology and Sample2.1. 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. Sample only, please download the full report from: http://econsultancy.com/reports/state-of-search SAMPLE: State of Search Marketing Report 2012 Page 8 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
  • 8. 3. Findings3.1. 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? 100% 13% 13% 29% 26% 30% 80% 41% 39% 41% 63% 60% 48% 44% 49% 47% 30% 38% 40% 47% 29% 20% 39% 29% 27% 25% 23% 22% 8% 0% Highly significant Significant Not significant Respondents: 272 Sample only, please download the full report from: http://econsultancy.com/reports/state-of-search SAMPLE: State of Search Marketing Report 2012 Page 9 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
  • 9. Agencies, with a broader focus than individual companies, are somewhat more concerned with therise of local search, but in general recognize the same set of priorities at similar levels.AgenciesFigure 2: In the context of your search marketing efforts, how would you describethe impact of the following trends and technologies? 100% 8% 13% 15% 17% 22% 22% 24% 80% 37% 55% 42% 42% 60% 50% 45% 50% 50% 40% 55% 37% 20% 45% 44% 33% 33% 28% 26% 9% 0% Highly significant Significant Not significant Respondents: 611Sample only, please download the full report from: http://econsultancy.com/reports/state-of-searchSAMPLE: State of Search Marketing Report 2012 Page 10All 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 andretrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
  • 10. SEO, Paid Search, and Social Media3.2. Objectives and metrics3.2.1. 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? 100% 3% 10% 11% 15% 18% 25% 80% 40% 34% 37% 45% 60% 38% 40% 79% 45% 57% 47% 44% 20% 37% 15% 0% Good Okay Poor Respondents: 270 Sample only, please download the full report from: http://econsultancy.com/reports/state-of-search SAMPLE: State of Search Marketing Report 2012 Page 11 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
  • 11. 3.3. Budgets3.3.1. Direction of digital marketing budgets Companies Figure 4: Change in digital marketing budgets 2012 – 2013 60% 51% 49% 50% 40% 37% 30% 26% 20% 16% 10% 10% 5% 2% 2% 2% 0% 0% 0% Significant Some growth No change Some Significant No investment growth decrease decrease 2012 2013 Projected 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. Sample only, please download the full report from: http://econsultancy.com/reports/state-of-search SAMPLE: State of Search Marketing Report 2012 Page 12 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
  • 12. 3.4. Search engines3.4.1. 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? 98% 97% 100% 86% 85% 80% 74% 74% 73% 73% 74% 70% 65% 60% 56% 40% 33% 24% 18% 17% 20% 15% 10% 10% 10% 8% N/A 0% 2011 2012 Respondents: 264 Sample only, please download the full report from: http://econsultancy.com/reports/state-of-search SAMPLE: State of Search Marketing Report 2012 Page 13 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
  • 13. 3.5. Social media and search marketing alignment3.5.1. 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? 80% 58% 60% 60% 49% 40% 33% 33% 29% 20% 18% 13% 7% 0% Social media is very much We treat social media and We dont do any social media part of our search activity search engine marketing marketing separately 2010 2011 2012 Respondents 2010: 389 | Respondents 2011: 245 | Respondents 2012: 218 Sample only, please download the full report from: http://econsultancy.com/reports/state-of-search SAMPLE: State of Search Marketing Report 2012 Page 14 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
  • 14. 3.6. Resourcing and outsourcing3.6.1. 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? 40% 32% 30% 29% 30% 24% 21% 20% 16% 16% 16% 15% 13% 11% 9% 8%7% 7% 7% 5% 2% 1% 0% 0% 0 1 2 3 4 5-10 More than 10 2010 2011 2012 Respondents 2010: 396 | Respondents 2011: 246 | Respondents 2012: 182 Sample only, please download the full report from: http://econsultancy.com/reports/state-of-search SAMPLE: State of Search Marketing Report 2012 Page 15 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
  • 15. 4. Appendix: Respondent Profiles4.1. Respondent titles Figure 8: What is your title? 35% 30% 29% 25% 22% 20% 18% 14% 15% 12% 10% 6% 5% 0% Analyst Manager Director VP C Level Other (please specify) Respondents: 718 Sample only, please download the full report from: http://econsultancy.com/reports/state-of-search SAMPLE: State of Search Marketing Report 2012 Page 16 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
  • 16. 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? 40% 28% 24% 20% 14% 9% 8% 6% 5% 4% 2% 1% 0 0% Respondents: 241 Sample only, please download the full report from: http://econsultancy.com/reports/state-of-search SAMPLE: State of Search Marketing Report 2012 Page 17 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