More Related Content Similar to Presentation -- Forecasting Search Marketing Investments (20) Presentation -- Forecasting Search Marketing Investments2. © 2014 Borrell
Search – The world that was, and shall be…
Pay-per-click advertising messages that include the purchase of keywords on sites such as
Google, Yahoo, Ask.com, MSN, etc. Directory search type advertising is also included here.
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
$6,000
$6,500
$7,000
$7,500
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Paid Search
A Silver Lining Exists
+66%
-32%
Source: Borrell Associates Inc., 2014
In millions
3. © 2014 Borrell
Borrell Associates – Tomorrow’s Media Understood Today
Research marketing & advertising revenues & spending
Consult on advertising strategy & tactics
Focus on local spending – both offline & online
Gather ad spending data from partners
Collect sales data from 4,400+ local websites
Conduct in-market surveys of business owners
Blend in secondary research
Release forecasts twice a year
along with in-depth reports on verticals
4. © 2014 Borrell
Incredible Growth in Digital Spending
$-
$5,000
$10,000
$15,000
$20,000
$25,000
2008 2013
Audio
Video
Paid Search
Display -Targeted
email
Display - ROS
Variances of over $25 million were seen in:
• Medical Professionals
• Financial Services
• Real Estate Services
• Entertainment (general)
• Restaurants
And these all increased spend by over 75%
Some categories actually decreased search spend:
• Home Improvement
• Travel Services
In Search…..
Source: Borrell Associates Inc., 2014
In millions
5. © 2014 Borrell
Although Search Grew, It Was Not Without Challenges
2009 study found 3 major disrupters:
Long tail of SMB’s
60% churn rate among resellers
Everyone jumping in (with varying degrees of skill)
Study followed Yodle, ReachLocal, WebVisible, & Clickable
6. © 2014 Borrell
Today, Many Have Thrived, but…
Yodle went from 250 employees, 5,000 customers, & $24
million in revenue to 1,100 employees, 40,000 customers and
$160 million
ReachLocal went from $200 million to $514 million
WebVisible foreclosed in October 2011
Clickable was acquired by Syncapse in June 2012
What happened?
8. © 2014 Borrell
Cable TV
Cinema
Direct Mail
Directories
Radio
Newspaper
Online 25%
Local TV
Stations
Other
Print
Out of Home
Telemarketing
2013
Digital Advertising is Only Part of the Pie – A Very Sizeable One
$-
$5,000
$10,000
$15,000
$20,000
$25,000
2008 2013
Audio
Video
Paid Search
Display -Targeted
email
Display - ROS
Source: Borrell Associates Inc., 2014
9. © 2014 Borrell
Cable TV
Cinema
Direct Mail
Directories
Radio
Newspaper
Online 25%
Local TV
Stations
Other
Print
Out of Home
Telemarketing
2013
And Advertising is Only a Portion of What Companies Spend
Promotions Advertising
$207,958.30
$99,343.49
2013
Source: Borrell Associates Inc., 2014
11. © 2014 Borrell
Digital Services is 4.5 Times Larger Than Digital Ad + Promotions
Digital
Services
82%
Digital
Advertising
12%
Online
Promotions
6%
App Development
Blog Management
Digital Press Release Management
Email List Purchasing
Email Management
Listings Claiming
Online Ad Design
Online Agency/Exchange Fees
Online Consulting and Research
Online Contest/Game
Development
Online Video Production
Opt-in List Management
Reputation Management
Search Engine Optimization (SEO)
Site Visitor Analytics
Social Media Management
Web Design/Maintenance
Web Hosting
Source: Borrell Associates Inc., 2014
12. © 2014 Borrell
Where The Money is in Raleigh, NC
$71.9 $69.8
$30.4
$97.3
$157.6
$101.7
$23.7
$88.6
Other Print Direct Mail Cable TV Local TV Stations Newspaper Radio Reputation Mgmt SEO
$828 million Advertising Market $1.8 BILLION Digital Services Market
With a “B”
Source: Borrell Associates Inc., 2014
13. © 2014 Borrell
Breaking Down That SEO Number….
Over $7.7 million spent
by companies with under
250 employees
Over $3.5 million spent
by Banks
Over $1.6 million spent
by Restaurants
Over $19 million spent by
Hospitals & Health Care
Over $1.5 million spent
by companies with under
100 employees
Source: Borrell Associates Inc., 2014
14. © 2014 Borrell
$1 out of $10 spent on Digital
Services will be spent on SEO
Not everything grows….
• Blog development
• Email list purchases
• Email management
And some things go nuts….
• App Design +657%
• Online Video Production +446%
• Mobile Media Management +610%
Overall, DSS grows by 57%
ONLINE PUBLIC
RELATIONS
7%
ONLINE
CONSULTING AND
RESEARCH
8%
WEB PRESENCE
49%
ONLINE
MARKETING
SUPPORT
13%
ONLNE AD
PRODUCTION
23%
2018 Digital Services
By 2018, the amount spent on SEO will have grown 52%
15. © 2014 Borrell
By 2018, SEO will be the main component of OMS
ONLINE PUBLIC
RELATIONS
7%
ONLINE
CONSULTING AND
RESEARCH
8%
WEB PRESENCE
49%
ONLINE
MARKETING
SUPPORT
13%
ONLNE AD
PRODUCTION
23%
WEB PRESENCE
Website Design/Maintenance
Web Hosting
Online Advertising Management
Mobile Media Management
Social Media Management
ONLINE PUBLIC RELATIONS
E-mail Management
Digital Press Release Distribution
Reputation Management
Opt-in List Management
ONLINE MARKETING SUPPORT
SEO
Blog Development
Site Visitor Analysis
E-mail List Purchase
Listings Claiming (Pay Per Call, Call Tracking)
ONLNE AD PRODUCTION
Online Agency/Exchange Fees
Display Ad Design
App Design
Online Contest/Game Development
Online Video Production
ONLINE CONSULTING AND RESEARCH
$708
Billion
2018 Digital Services
16. © 2014 Borrell
One Thing We Know About the Future is…it’s Unknown
• What could impact these projections?
• Aggressive Media Companies
• Selling SEO with 95% of the front-line sales people
• Other players – web.com, VistaPrint, Hubspot
• Large number of SMB’s buying; then upselling them
• Nature of “search” itself
• Boundaries of intuitive search
• Rules of the game
• Penguin, Panda, Hummingbird, ???
17. © 2014 Borrell
In Conclusion…
• Paid search rose, will peak in 2014, then fall off
• SEO will continue to grow – and grow strong
• Advertising is one piece of the pie….
• Promotions is another, bigger piece….
• But the majority of the pie going forward belongs to Digital Services
• More than 3 out of every 4 digital dollars spent by a company on these three
areas will go to Digital Services
18. Tomorrow’s Media, Understood Today
www.BorrellAssociates.com
Thank you!
This presentation will be
available at:
www.borrellassociates.com/2014sis