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SEM Spending Grows Despite Recession

Despite the slow economy, companies are spending more and more money on search engine marketing and optimization, a sign that business owners and managers are realizing the value of Web search in both online and offline business.

The numbers were provided by WordStream, Inc., a pay-per-click (PPC) software and search engine optimization (SEO) tools, in its Search Engine Marketing Spending Trend Survey for 2010.

The survey included responses for hundreds of entrepreneurs, industry professionals and marketing managers. Of all the respondents, 68% said they planned on spending more on search optimization and marketing this year than they did in 2009.

The results suggest that even with extensive losses across the industry as a result of the recession, demand for Web marketing and SEM services has remained high and has even gone up considerably in the past few months.

WordStream marketing manager Ken Lyons said that business owners are starting to see the importance of focusing on search engine results. Although they may not fully understand the process, he says, they recognize the role it plays in the marketing plan.

Lyons added that the economic climate has actually helped boost SEM activity, as tight finances forced businesses to look into more profitable sales channels. Now that many are starting to recover, he said, businesses will continue to benefit from SEM techniques.

The study also shows a trend towards keeping search marketing an in-house affair, rather than outsourcing the work. This “do-it-yourself” approach, according to Lyons, appeals to many businesses becomes it offers a more hands-on way to meet business goals.