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SEM increase in UK could foreshadow rise in U.S.

2009-04-23

A rise in SEM in the UK could mean big things for the industry on this side of the pond
In what may be a sign of things to come in the U.S., a new report finds that 55 percent of UK companies plan to increase SEO budgets this year.

The report released today from Guava and Econsultancy finds that the overall use of online marketing continues to increase with an additional 45 percent of respondents saying they will also increase spending on paid search in 2009.

Linus Gregoriadis, research director for Econsultancy, said the expected increase shows that companies are getting better ROI on search engine marketing campaigns despite the ongoing global recession.

"This research provides more proof that companies are turning to digital channels such as paid search and search engine optimization where there is a demonstrable return on investment," he said. "Crucially, companies are also getting better at measuring their returns from this channel which, in turn, is leading to more investment."

The report also found a strong increase in the number of companies using social media with the biggest increase coming in the use of Twitter.

According to the report, last year only 3 percent of companies said they used the micro-blogging service for their marketing campaigns while this year almost half (49 percent) responded that they're using it.

Increased ROI appears to be one of the biggest reasons marketers are turning to search engine marketing (SEM) with a study this month from Efficient Frontier finding that marketers reported a 10 percent increase in ROI from SEM campaigns last quarter.ADNFCR-1844-ID-19137293-ADNFCR

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© Brafton, Inc. 2009

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