Search Engine Watch reports on a survey of 553 search engine marketing customers conducted by Radar Research and Intellisurvey. Key points:
- The North American search engine marketing industry has grew from $4 billion to $5.75 billion in 2005.
- Paid placement (ie. purchase of ads next to search results) accounts for 83% of total search engine marketing spending.
- Paid inclusion (ie. inclusion of an advertiser's URL in actual search results without notifying the user that the link has been paid for), offered only by Yahoo, accounted for $246 million or 4% of overall spending. But 38% of respondents said they used it.
- Search engine marketing technologies, including leasing, agency solutions and in-house development accounted for $90 million, or less than 2% of overall spending.
- Market share data: 95% of search marketers advertise with Google, 60% with Yahoo, almost a third with MSN.
- Contextual advertising: 46% of search marketers are using Google AdSense and Yahoo! Search Content Match.
Full article here.
Stock-related take-away? This is the first estimate I've seen of Yahoo's revenue from paid inclusion. $246 million is quite a sum. Is it at risk, given that paid inclusion is a somewhat questionable practice?
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