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Search Marketing: Counting Dollars and Clicks

Product Type: Market Research Report
Published by: eMarketer
Published: April 2007
Product Code: R203-479
Description
Search engine marketing is a highly concentrated industry. Over 90% of US paid search ad spending will go to Google and Yahoo! in 2007. One result of this concentration is that it often makes advertising on second-tier search engines a better value—less competition for keywords means a broader reach for fewer ad dollars.

The Search Marketing report delves into all aspects of online search advertising—and analyzes how the fast-changing trends will affect marketers large and small.

Key questions the "Search Marketing" report answers:
  • Will US paid search ad spending continue to grow?
  • What trends support growth in search engine marketing?
  • Other than Google and Yahoo!, which search engines get the most users?
  • On average, how much do search keywords cost?
  • Which works better, paid search advertising or search engine optimization?
  • And many others...
eMarketer Reports—On-Target and Up-to-Date
The Search Marketing report aggregates the latest data from a range of marketing and communications researchers with eMarketer numbers, projections and analysis to provide the information you need to make the right business decisions—today.
Table of Contents
Executive Summary

Google and Yahoo!'s Share* of US Paid Search Advertising Spending, 2004-2007

Issues & Questions

The eMarketer View

Key eMarketer Numbers: Search Marketing

Search Spending & Revenues

US Paid Search Advertising Spending As a Percent of Total Online Advertising Spending, 2000-2011

US Paid Search Advertising Spending, 2000-2011 (millions)

US Paid Search Advertising Spending Growth, 2001-2011 (% increase vs. prior year)

Comparative Estimates: US Paid Search Advertising Spending, 2006-2011 (billions)

Comparative Estimates: US Paid Search Advertising Spending As a Percent of Total Online Advertising Spending, 2006-2011 (% of total)

Comparative Estimates: US Paid Search Advertising Spending Growth, 2006-2011 (% increase/decrease vs. prior year)

Market Leaders: Google & Yahoo!

Google and Yahoo!'s Share* of US Paid Search Advertising Spending, 2004-2007

US Paid Search Advertising Revenue* Growth at Google and Yahoo!, 2004-2007 (% increase vs. prior year)

US Paid Search Advertising Revenues* at Google and Yahoo! As a Percent of Total Online Advertising Spending, 2004-2007

US Paid Search Advertising Revenues* at Google and Yahoo!, 2004-2007 (millions)

Spending Trends

Year that Search Engine Advertisers Worldwide First Engaged in Paid Placement Search Advertising, by Business Size, December 2006 (% of respondents)

Select New Online Media that US Advertising Executives Consider Most Effective or Very Effective, 2006 (% of respondents)

Percent of Media Budget that US Advertising Executives Plan to Allocate to Select New Online Media in 2007

Interactive Marketing Channels that US Marketers Are Currently Using, Piloting or Expecting to Pilot within the Next 12 Months, December 2005 (% of respondents)

Most Important Advertising Tactics that US Marketers Plan to Use This Coming Year, December 2006 (% of respondents)

Paid Search Spending Increases Planned for 2007 according to Search Engine Advertisers Worldwide, December 2006 (% of respondents)

Top 10 US Search Engine Marketing and Optimization Agencies, Ranked by Revenues, 2005 (millions, % increase vs. prior year and number of employees)

Source of Budget for Paid Placement and Paid Inclusion Programs according to Search Engine Advertisers Worldwide, by Business Size, December 2006 (% of respondents in each group)

Existing Marketing Budgets Being Shifted to Search Marketing Programs by Search Engine Advertisers Worldwide, December 2006 (% of respondents)

Average and Largest Client Spending in 2006 on Search Engine Marketing according to Search Engine Agencies Worldwide, by Type, December 2006 (gross spending)

Keyword Usage & Costs

B2C Keyword Purchase Volume in the US, September 2004-August 2006 (% increase vs. prior year)

US Media Executives Who Are Paying More to Purchase Search Keywords, Q1 2006 vs. Q4 2005 (% of respondents)

Cost-per-Click (CPC) for Google and Yahoo! Paid Search Listings, 2005 & 2006 (% increase vs. prior year)

Average Number of Keywords per Search Query Used by Internet Users Worldwide, July 2004 & July 2006

Average Number of Keywords per Search Query Used by Internet Users Worldwide, January 2007 (% of respondents)

Select Cost-per-Click Charges on Select Keywords on the Yahoo! Search Site, January 26, 2007 (price for top position)

Cost per Click for Select Paid Search Terms on Yahoo! Search Marketing, by Top Five Positions, January 2007

Cost per Click for Select Paid Search Terms on Yahoo! Search Marketing, by Top Five Positions, January 2007 (% increase/decrease vs. prior year)

Cost-per-Click (CPC) for Google, Yahoo! and MSN Paid Search Listings, 2004-2006 (average)

US Search Marketing Average Price per Click (PPC), 2003-2010 (% increase vs. prior year)

Average Keyword Price in the US, Q4 2005-Q4 2006

Average Pay-per-Click Term Cost for the Top Key Terms among the Top Five Industries* Using Search Marketing, Q1-Q4 2006

US Marketers Who Bid on 10,000+ Keywords, 2005 & 2006 (% of respondents)

Type of Search Keywords that US Internet Users Enter prior to Their First Click on a Paid Search Ad, Q1 2006

Trademark Use in Paid Placement Search Advertising according to Search Engine Advertisers Worldwide, by Business Size, December 2006 (% of respondents)

Measuring Results

Metrics that Advertisers and Agencies Worldwide Track to Gauge the Success of Search Engine Marketing Programs, December 2006 (% of respondents)

Top Goals of Search Engine Marketing Campaigns according to Search Engine Advertisers Worldwide*, 2006 (% of respondents)

Metrics Used by US E-Commerce Executives to Measure Pay-per-Click (PPC) Campaign Success, 2006 (% of respondents)

US Search Marketing Click-Through Rate (CTR), 2003-2010

Sponsored Search Advertising Impressions and Click-Through Rates for Select US Online Travel Web Sites, April 2006

Conversion Rates for First Clicks on Paid Search Ads Based on Type of Keywords Entered by US Internet Users, Q1 2006

Natural vs. Paid First Clicks that Led to Conversions via US Search Engines, 2006 (% of converted first clicks)

Brand vs. Non-Brand First Clicks that Led to Conversions via US Search Engines, 2006 (% of converted first clicks)

First Clicks vs. Multi-Clicks* that Led to Conversions via US Search Engines, 2006 (% of total converted clicks)

Leading Problems with Search Engine Marketing according to US Search Marketers, by Business Size, 2006 (% of respondents)

Measurements/Analytics in which US Online Marketers* Plan to Invest Next Year, by Type, 2005 & 2006 (% of respondents)

Search Engines: Comparative Stats

Share of Online Searches in the US, by Search Engine Provider, July 2006-January 2007 (% of total)

Top Five Search Engines in the US, Ranked by Share of Searches, August 2006-February 2007 (% of total)

Leading US Search Engines, Ranked by Volume of Searches, December 31, 2006-January 27, 2007 (% market share)

Top Five Search Engines in the US, Ranked by Number of Searches, August 2006-February 2007 (millions)

Degree of Google Usage among US Internet Users, November 2006 (% of respondents)

Search Engines Used by US Search Engine Users, August 2005 & 2006 (% of respondents who used the search engine that month)

Paid Placement Search Engine Networks on which Search Engine Advertisers Worldwide Run Campaigns, December 2006 (% of respondents)

Search Engines Used by US E-Commerce Executives for Pay-per-Click (PPC) Marketing, 2006 (% of respondents)

Selecting Tactics: Paid Search vs. Organic SEO

Best ROI for Product Marketing Tactics according to US Marketers, Spring 2006 (% of respondents)

Advertisers Worldwide Who Currently Engage in Paid Placement Search Advertising or Organic Search Engine Optimization, by Business Size, December 2006 (% of respondents)

Advertising or Marketing Vehicles that Provide the Highest Return on Investment (ROI) or Advertising Spending (ROAS) according to Advertisers Worldwide, December 2006 (% of respondents)

Best ROI for Lead Generation Tactics according to US Marketers, Spring 2006 (% of respondents)

Paid and Natural Search Conversion Rates in the US, August 2006 (average)

Paid Search vs. Organic Search Conversion Rates at B2C E-Commerce Web Sites Worldwide, January-August 2006

Search Marketing Conversion Rates for Paid Search Advertising vs. Search Engine Optimization (SEO) in the US, by Campaign Goals, August 2005

Multi-Click* Users Who Switched between Paid and Natural Listings that Led to Conversions via US Search Engines, 2006 (% of each group)

Level of Experience or Interest in Contextually Targeted Text Advertising* according to Search Engine Advertisers and Agencies Worldwide, December 2006 (% of respondents)

Percent of Paid Placement Search Advertising Spending that Goes to Contextually Targeted Text Ads according to Search Engine Agencies Worldwide, December 2006 (% of respondents)

Click Fraud

Type of Click Fraud Experienced by Search Engine Advertisers and Agencies Worldwide, by Business Size, December 2006 (% of respondents)

Average Click Fraud Rates in the US, Q2 2006-Q4 2006

Search Engine Advertisers and Agencies Worldwide Who Have Been the Victims of Click Fraud, by Business Size, December 2006 (% of respondents)

Average Click Fraud Rate for Companies Running Online Advertising Campaigns through Search Providers in the US, Q1 & Q2 2006

US Advertisers Who Plan to Reduce or Have Reduced Their Pay-Per-Click (PPC) Spending Because of Click Fraud, 2006 & 2007 (% of respondents)

Attitudes of US Search Marketers toward Click Fraud, 2006 (% of respondents)

Degree to which Click Fraud Is a Problem with Regard to Paid Placement Search Advertising according to Search Engine Advertisers and Agencies Worldwide, by Business Size, December 2006 (% of respondents)

Leading Problems with Search Engine Marketing according to US Search Marketers, by Business Size, 2006 (% of respondents)

Consumer Profile: Actions & Attitudes

Demographic Profile of US Search Engine Users, by Search Engine, October 2006

Best Search Engine according to US Internet Users, November 2006 (% of respondents)

Internet Users in North America Who Use Search Engines, by Frequency, Q2 2006 (% of respondents)

Average Number of Internet Searches Done Each Day by US Internet Users, November 2006 (% of respondents)

Frequency of Search Engine Usage among US Internet Users, by Search Engine, November 2006 (% of respondents)

Methods that US Internet Users Most Often Use to Navigate to a Web Site, November 2006 (% of respondents)

Attitudes of Search Engine Users in North America toward Search Results, by Frequency of Search Engine Usage, Q2 2006 (% of respondents)

How US Internet Users Locate the Blogs They Read, November-December 2006 (% of respondents)

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