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Search engine marketing rebounds

Posted by Michael Bloch in web marketing (Wednesday July 14, 2010 )

The Search Engine Marketing (SEM) industry has experienced solid growth in the second quarter of this year compared to Q2 2009 according to Efficient Frontier’s U.S. Search Engine Performance Report.

In Q2 2010, year over year investment was up 24%, with a 9.7% increase in spend quarter over quarter, partly due to an increase in click prices. Efficient Frontier says return on investment in search was up 4% year over year and was 10.6% higher than in the first quarter of this year. Online shoppers are playing their part, with impression volume up 65% year over year.

The retail sector appears to have been the big spenders, with 38% growth in spend year over year.

Bing grabbed more market share at Yahoo!’s expense, growing from 6.1% in Q1 to 6.4% in Q2 2010, while Yahoo spend fell to 18% from 18.7% in Q1 2010. Google’s market share has grown slightly in the second quarter.

Efficient Frontier expects the positive trends to continue for the second half of the year and for retail to continue showing strong growth in search engine spend in the range of 30+%. However, the company points out a shaky European economy might have a negative effect on the third quarter this year and as such, the firm’s overall search engine marketing growth expectations are in the 15-20% range.

Efficient Frontier is a performance marketing company managing more than $900 million annually on behalf of a global client base.

The complete U.S. Search Engine Performance Report: Q2, 2010, is available for download here.


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