UK SEM worth £598m

2 comments
Source Title:
DaveN & DougS worth £598m by end of 2005
Story Text:

The E Consultancy, have delivered another of their buyer guides. This time it is the Search Engine Marketing – A Buyer’s Guide (2005)

Their headline snippet is:

E-consultancy estimates that the UK market for search engine marketing will be worth £598m by the end of 2005, fuelled mainly by increased spending in the PPC arena but also supplemented by increased spending on organic search.

They are generally a great read but cost £79 plus VAT although a shortened version is available at no cost from the URL above.

One interesting quote is:

While spending on PPC has surged ahead of the amount invested in SEO, industry experts predict that the pendulum will start swinging back towards natural search as cost-per-click (CPC) inflation on keywords starts to bite, and businesses increasingly seek a complementary mix of PPC and organic listings to address both short-term tactical needs and longer-term strategic objectives. However, this may not happen for another couple of years and will be offset by the launch of local search.

Could this also be due to click fraud ?

Comments

 

industry experts predict that the pendulum will start swinging back towards natural search as cost-per-click (CPC) inflation on keywords starts to bite,

I think that it depends some what on what industry you are in and what you are willing to pay per click and set that against your cost per acquisition.

Some industries may have a much higher ceiling than others.

 

industry experts predict that the pendulum will start swinging back towards natural search as cost-per-click (CPC) inflation on keywords starts to bite,

I definately agree to that observation. In fact, I've had several clients in the past year moving away from, or reducing budgets, on PPC. Funny enough more and more of them request CPC or CPA based organic optimization. This part of my business I expect to grow rapidly over the next 1-2 years.

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