The evolution of search engine marketing

The world of search engine marketing (SEM) is constantly evolving. With a greater number of search engines, and developments in techniques and technologies used, SEM is becoming a tool of the industry can not afford to do without. The worldwide trends show that the pressure is beginning SEM services to those customers. Indeed, SEM is rapidly evolving as the buzz word on a new technology-driven advertising space and marketing a line. As a result, companies that are serious about their Internet presence is making the search engine marketing a key component of their advertising campaign.

Google, Yahoo and MSN have the most market share of search engines, with Google being the strongest. AOL, Ask Jeeves and Altavista capture small market shares, while a number of other search engines and targeted specific geographic market competition in their own niches. In a study conducted in July 2005, Nielsen / Netratings reported that the search engine market share was the highest in Google in 48%. Yahoo and MSN had the market share of 22% and 12% respectively.

MSN and Google were also the main destinations for most online purchases, according to a study by comScore Networks (June 2005). The study noted that IMSN search engines 48% more likely to buy online than the average internet user. Google users were 42% more likely to buy online than the average internet user. There was also noted that while Google searches looked more sophisticated search terms, simple broad term searches occurred for AOL, Yahoo and MSN.

One thing is increasingly evident today: the search engine advertising is not another Internet bubble, which is driven by users and the fact that people everywhere have to go somewhere to search and find information. Take China for example - who have heard of Baidu.com? Not many people. It is a Chinese search engine that has been around for 5 years and is the world's sixth most visited website, thanks to the speed of China Internet market growing more now just over 100 millio
Internet users. Baidu has recently undergone an initial public offering on the stock price when it's $ 27 to $ 150 in the period of a day. And what about Google? It was recently reported quarterly revenues of $ 1.4 billion. Google's revenue, excluding payments to other Web sites in its advertising network jumped to $ 890 million, an increase of 110% over the previous year and above the expected $ 842 million.

U.S. Online Marketing Forecast: 2005 to 2010 by Forrester Research (May 2005) revealed that the area of search marketing is all set to go up and show a growth of 33% in 2005. Forecasts indicate that the figures will reach $ 11.6 billion in 2010. Display advertising, which includes traditional banners and sponsorships, will grow at an average rate of 11% over the next five years to $ 8 million in 2010. U.S. online advertising and marketing expenditures will reach $ 14.7 billion in 2005, an increase of 23% over 2004. Trends also showed that while SEM is set to be more effective than traditional marketing channels, barriers include lack of experience in online advertising. However, search engine marketing companies are adopting this new branch of advertising and its customers are reaping the rewards extremely lucrative.