Research Search Engine Marketing: User and spending Trends

Search Spending by Type In 2007, paid search ads will contribute 62% to all search engine marketing spending, with SEO spending contributing about 18% to the pie. By 2011, however, a greater focus on SEO means that form of search marketing will represent nearly 23%, while paid search will fall back to not quite 57%.

In 2007, paid search ads will contribute 62% to

all search engine marketing spending, with SEO

spending contributing about 18% to the pie. By

2011, however, a greater focus on SEO means that

form of search marketing will represent nearly 23%,

while paid search will fall back to not quite 57%.

Search Spending by Type According to Forrester, a similar but more dramatic shift will occur in search marketing spending. However, the research firm sees paid search with only a 44% share in 2011, whereas SEO will contribute 33% to the whole.

Search Spending By Type In dollar terms, the paid search market share will surpass $6.5 billion in 2007 and nearly double to almost $12.2 billion in 2011. Over the same period, spending for SEO and contextual advertising will more than double. Overall, search engine marketing spending will rise spectacularly from $10.6 billion in 2007 to $21.5 billion in 2011.

In dollar terms, the paid search market share

will surpass $6.5 billion in 2007 and nearly

double to almost $12.2 billion in 2011. Over

the same period, spending for SEO and

contextual advertising will more than double.

Overall, search engine marketing spending

will rise spectacularly from $10.6 billion

in 2007 to $21.5 billion in 2011.

Search Spending By Type However, an Internet Retailer survey of chain retailers, catalog companies, Web-only merchants and consumer brand manufacturers showed 46.1% of respondents saying SEO performed best compared with 37.3% for pay-per-click advertisements.

People Who Search According to ongoing research from the Online Publishers Association (OPA) and Nielsen//NetRatings, US Internet users in 2007 will spend less than 5% of their online time using search versus nearly 50% of their time on content sites.

According to ongoing research from the Online Publishers Association (OPA) and

Nielsen//NetRatings, US Internet users in 2007 will spend less than 5% of their online time

using search versus nearly 50% of their time on content sites.

People Who Search Who is the audience for search engines and the advertisers who love them? The following sections help paint a fuller picture of the search audience by answering these questions: Who searches? How many people search? How often do they search? Where do people search? Where do searchers come from? Where do they go? How many searches do people conduct? How do people use keywords? Why do people search?

Who is the audience for search engines and the advertisers who love them? The following

sections help paint a fuller picture of the search audience by answering these questions:

Who searches?

How many people search?

How often do they search?

Where do people search?

Where do searchers come from? Where do they go?

How many searches do people conduct?

How do people use keywords?

Why do people search?

Who Searches? A demographic profile of US search engine users from Nielsen//NetRatings indicated that searchers were much like Internet users in general, except for some salient differences. For example, while 20% of the online population was younger than 18, a lower percentage used each of the five search engines included. Similarly, while 28% of the online population Was between 35 and 49, a higher percentage used the five search engines.

A demographic profile of US search engine users

from Nielsen//NetRatings indicated that

searchers were much like Internet users in

general, except for some salient differences.

For example, while 20% of the online population

was younger than 18, a lower percentage used

each of the five search engines included.

Similarly, while 28% of the online population

Was between 35 and 49, a higher percentage

used the five search engines.

Customer Satisfaction Consumer attitudes about search—and the data created each time people enter a search term increasingly count privacy as a valuable asset. The “Digital Footprints” report, released in December 2007 by the Pew Internet & American Life Project, studied the connections between online personal information and search. Though the report did not focus on search query data, it is a useful guide to

Consumer attitudes about search—and the data created

each time people enter a search term increasingly count

privacy as a valuable asset. The “Digital Footprints” report,

released in December 2007 by the Pew Internet & American

Life Project, studied the connections between online personal

information and search. Though the report did not focus on

search query data, it is a useful guide to

User Search Behaviours Earlier data indicated that AskEraser, or equivalent programs from other search engines, could win more users. The Center for Survey Research and Analysis at the University of Connecticut found that 60% of US adults somewhat or strongly opposed search engines permanently storing user search behaviors. Trust is limited. At least that’s true among the 51% of respondents who expressed some degree of apprehension that information collected by search engines would remain private.

Earlier data indicated that AskEraser, or equivalent

programs from other search engines, could win more

users. The Center for Survey Research and Analysis at

the University of Connecticut found that 60% of US

adults somewhat or strongly opposed search engines

permanently storing user search behaviors.

How Many People Search At least 155 million people in the United States used search engines in 2007. That group will rise by 25 million by 2011.

At least 155 million people in the United States used search engines in 2007. That group will rise

by 25 million by 2011.

Search Engine Ranking Counting search users by search engine sites finds Google at the top of the heap. However, while comScore’s qSearch 2.0 service said there were 142.1 million unique users on Google in September 2007, Nielsen Online’s MegaView Search service put that month’s figure at 105 million.

Counting search users by search engine sites finds Google at the top of the heap. However, while

comScore’s qSearch 2.0 service said there were 142.1 million unique users on Google in

September 2007, Nielsen Online’s MegaView Search service put that month’s figure at 105

million.

How Often Do People Search 90% of US consumers use search engines or portals weekly, according to the “State of Media Democracy” survey from Deloitte & Touche.

90% of US consumers use search engines or portals weekly, according to the “State of Media

Democracy” survey from Deloitte & Touche.

Where Do People Search looking just at September 2007, either 76.9% (comScore) or 77.9% (Nielsen) of unique searchers used Google. Similarly, either 35.3% or 33.2% used Microsoft sites or MSN/Windows Live, according to the two researchers. Although shares differ for Yahoo!, the Time Warner network (mainly AOL) and Ask, those three, in addition to Google and Microsoft, get the greatest share of searchers.

looking just at September 2007, either 76.9% (comScore) or 77.9% (Nielsen) of unique searchers

used Google. Similarly, either 35.3% or 33.2% used Microsoft sites or MSN/Windows Live,

according to the two researchers.

Although shares differ for Yahoo!, the Time Warner network (mainly AOL) and Ask, those three,

in addition to Google and Microsoft, get the greatest share of searchers.

Where Do Searchers Come From? For Google and Ask, the top 10 upstream sites delivered 37.7% and 43% of their October 2007 US visitors, respectively. However, for Yahoo! Search and MSN Search, their top 10 upstream sites were far more concentrated, delivering 73.5% and 80.7% of their October 2007 US visitors, respectively. The percentages for downstream visits among all four search engines were far more alike, ranging from 13% to 14.8% among the top 10 sites in that same month.

For Google and Ask, the top 10 upstream sites

delivered 37.7% and 43% of their October 2007

US visitors, respectively.

However, for Yahoo! Search and MSN Search, their

top 10 upstream sites were far more concentrated,

delivering 73.5% and 80.7% of their October 2007

US visitors, respectively.

The percentages for downstream visits among all

four search engines were far more alike, ranging

from 13% to 14.8% among the top 10 sites in that

same month.

How Do People Use Key Words Wordtracker, a keyword analysis firm that derives its data from Infospace, a search aggregator, 23.2% of all keywords or search terms entered in the August to October 2007 period were entertainment related. At the other end, only 2.3% of keywords came from either the health or the money and personal finance categories.

Wordtracker, a keyword analysis firm that derives

its data from Infospace, a search aggregator, 23.2%

of all keywords or search terms entered in the August

to October 2007 period were entertainment related.

At the other end, only 2.3% of keywords came from

either the health or the money and personal finance

categories.

Top Five Key Words The top five keywords indicates several factors about the ways people use search engines. MySpace and YouTube were searched for at least two different ways. That indicates how various spellings need to be bid on for any set of keywords. Looking at the same category—or at the search sites, communication or e-commerce categories—it seems that the top searches might not be used so much to find things as they are to index things, a substitute for Web browser bookmarks. Categories such as health and money and personal finance tend to garner more general terms. That implies that more searches, rather than user laziness, are taking place.

Average Number Of Key Words Over time, people do tend to enter more complex search queries. In data comparing the average number of keywords per query in July 2004 with July 2006, one- and two-word queries both decreased, while more Internet users went to three-or-more-word queries.

Over time, people do tend to enter more complex

search queries. In data comparing the average number

of keywords per query in July 2004 with July 2006,

one- and two-word queries both decreased, while more

Internet users went to three-or-more-word queries.

Why Do People Search The Internet is the tell-me-more medium—the world’s largest library, mall and local pub or schoolyard rolled into one. What do people want to know more about? Those Web site categories that gained the greatest share of visitors directly from search engines included education, health and medical, food, and beverage and music, according to Hitwise data. People search to shop, sometimes for pleasure and sometimes, as with health-related items, for necessity.

Why Do People Search When people start to shop, a general search engine is the most-used online resource, more so for inexpensive than costly goods, according to the October 2007 “Digital Consumer Behavior Study” from Avenue A-Razorfish. In the 2007 version of a Millard Group report, only 13% of US online buyers used a search engine to access a retail site. Prior connections with the retailer, such as an e-mail promotion or a merchant link, are far more used. Of course, the initial contact used to create that connection might very well have come from a consumer search.

Initial Connection A similar 10% of Internet users cited search engines as their primary outlet for learning about new products, according to an Accenture report. Yet even though TV might be the first way most people hear about a new product, a search can readily follow down the line as people look for a place to purchase the item.

SEO Attention In fact, among all the age groups polled by Deloitte & Touche, search engine results were more likely to lead to site visits than any other form of advertising, including word of mouth, TV commercials and display ads on other sites. So it’s no wonder that 40% of total Internet spending goes to paid search advertising.

In fact, among all the age groups polled by Deloitte & Touche, search engine results were more

likely to lead to site visits than any other form of advertising, including word of mouth, TV

commercials and display ads on other sites. So it’s no wonder that 40% of total Internet spending

goes to paid search advertising.

SEO Attention No wonder, too, that search engine optimization will receive increased attention and spending, considering how 18.1% of retailers say that 10% or more of search engine shoppers visit their sites as the result of a natural search listing.

No wonder, too, that search engine optimization will receive increased attention and spending,

considering how 18.1% of retailers say that 10% or more of search engine shoppers visit their

sites as the result of a natural search listing.

SEO Attention Research from comScore and Yahoo! found that 43% of in-store buyers were influenced by a combination of online display and search ads. Even 26% of in-store buyers were inspired to hand over their credit cards because of a paid search campaign.

Research from comScore and Yahoo! found that 43% of in-store buyers were influenced by a

combination of online display and search ads. Even 26% of in-store buyers were inspired to hand

over their credit cards because of a paid search campaign.