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Study Shows Search Engine Marketing On the Rise

Already a major player in online business, the search engine marketing industry continues to expand its presence on the Internet. Recent reports show that companies spent 16% more in search engine marketing in the second half of 2009 compared to the first two quarters.

The figures were revealed in a study by Covario, a San Diego-based search marketing solutions firm. According to the study, search engine giant Google and Microsoft’s Bing search have both played equal roles in promoting usage of search engine technology and making it central to the online playing field.

Bing has been particularly instrumental in the said period, having doubled in U.S. market shares starting from the third quarter. This rapid growth is believed to have affected Google, who, while still leading with a 72% market share, has had its lowest performance in the past three years.

Covario senior vice-president Craig Macdonald said the 2009 expansion was surprising, especially given the economic downturn. According to him, online public relations professionals, as well as other “high-tech” marketing players, have spent about 12% more on paid search this year than a year ago.

Macdonald added that advertisers are starting to realize the potential of search engine tools beyond Bing and Google, which means there may be more players in the search industry in the coming years. It also means that more online businesses will be encouraged to tap into the market, as their options become more expansive.

A separate study by software company WebVisible showed that search engine marketing has increasingly appealed to small and medium-sized businesses. The report showed that these companies have directed an average of $1,658 towards search engine marketing and similar efforts in the third quarter of 2009.