This morning, eMarketer reports “Although SEM has been booming, there may be a spending limit for some marketers”.
As it turns out, from the results of a study conducted for the Search Engine Marketing Professional Organization (SEMPO) called “2007 State of the Market” we learn that there are multiple reasons for SEM spending growth. The reasons include advertiser demand, rising keyword and pay-per-click campaign costs, small-to-midsized business SEM use and increased behavioral and demographic targeting.
Very importantly in light of concerns about the overall economy, “some of this spending is the result of shifting marketing dollars from other offline and online marketing endeavors” says Jeffrey Pruitt, president of SEMPO.
So, even as some businesses decide to cut back spending to hedge against further economic problems, search engine marketing (SEM) is in great shape. For now.
The study also found that three-quarters of respondents said they were “nearing a spending ceiling” in SEM.
How can your businesses respond to rising keyword and pay-per-click campaign costs?
Simple: get more Actions on your website. Improve the conversion rate, and watch the marketing ROI rise.
(To access our handy Conversion Optimization Model for Lead Generation and eCommerce, just click here: //widerfunnel.com/proof/downloads)
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