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SEMPO State of the Market 2008 Survey Finds Online Advertisers More Excited about Video and Mobile Search

Behavioral Targeting and Local Search Continue Ascent

Wakefield, MA, April 8, 2009 – Online advertisers are embracing new marketing platforms and showing an increasing willingness to pay more for targeted reach through behavioral targeting and local search, and to expand marketing channels through video and mobile search, according to the data findings of the 2008 State of the Market survey of advertisers and agencies by the Search Engine Marketing Professional Organization (SEMPO).

Social media also continues to build market share as more than 40% of advertiser respondents report they are using in-house marketers to actively promote their brand on social media. Of respondents using social media, Facebook is the leader: more than four out of five advertisers are using Facebook to promote their brand.

SEMPO previously reported that survey findings project 2009 SEM spending to rise to $14.7 billion, with long term spending to reach $26.1 billion in 2013. SEMPO’s detailed online survey by Radar Research was completed by 890 search engine advertisers and SEM agencies and administered via IntelliSurvey, Inc.  The executive summary is available to the public online at www.SEMPO.org.

"When you look at long term growth of the search marketing sector, it is evident new forces such as mobile advertising and contextual video ads will fuel increased online ad spend. These forces are still in the early stages but clearly the consumer is embracing these new channels with enthusiasm,” notes Sara Holoubek, SEMPO president and corporate strategy consultant.

Here are key survey findings on trends:

Behavioral Targeting:  Respondents are overwhelmingly interested in behavioral targeting opportunities: 75% say they would pay more for clicks targeted to in-market consumers. There is also significant interest in demographic targeting such as age and gender. Advertisers, on average, would pay 10 percent more for demographic targeting and daypart targeting, and 13 percent more for behavioral search targeting. Two in five advertisers said they are not currently targeting or retargeting searchers but plan to in the next 12 months.

Local Search: Almost a third of respondents has tried locally targeted search ads and thinks "it works great.” About a third (34%) had tried locally targeted search and thought "it works okay." More than three out of five marketers (62%) are willing to pay a premium of 1% -5% for local targeting, up from two in five advertisers last year. Beyond that, one in five claim they are willing to pay between 6%-10% premiums, dropping from one-third in 2007.

Google and Yahoo Dominate Local Search: Google AdWords Local Targeting has solidified its lead as the most popular local search advertising program, used by 80% of advertiser respondents. Some 56% of advertisers reported using Yahoo! Search’s Local Match paid placement program.

Video Search: Some 54% of respondents said they would be interested in contextually targeted advertising attached to video search results. Two in five advertiser respondents claim they want to pay the same for video search as they’re currently paying for traditional search. Among advertisers who report the willingness to pay a premium for video, most prefer to pay 20% or less as a premium.

Mobile Search: Respondents are also warming up to mobile: some 48% said they would be interested in contextually targeted advertising delivered to mobile search users. Almost two in five advertiser respondents claim they want to pay the same for mobile search as they’re currently paying for traditional search. Among advertisers who report the willingness to pay a premium for mobile search, they show an unwillingness to pay more than 30% premium.

Social Media: Among advertisers doing social media marketing, more than four out of five are using Facebook to promote their brand. Digg is the second most popular social media site, with more than two-thirds of advertisers using it. Del.icio.us, StumbleUpon, Reddit and Technorati round out the most popular sites to promote brands.

"Online advertisers are redefining the touchpoints which extend search and keyword targeting, all of which provide additional opportunities to reach the consumer. We know that consumers don’t look exclusively to search engines for information; while they are communicating they are also gathering information,” says Kevin Lee, SEMPO board of directors member and Chairman & CEO / Co-Founder, Didit.  

About Radar Research
Radar Research is a Los Angeles-based research and consulting firm aimed at the nexus of media, technology, culture and commerce. It was founded by two former Jupiter Research analysts, Marissa Gluck and Aram Sinnreich. Radar conducts research on behalf of both corporate clients and non-profit organizations, such as DoubleClick, Sony Pictures Entertainment, Nielsen//Netratings, the Online Publishers Association and The Norman Lear Center. For more information, please visit www.radarresearch.com.

About the Search Engine Marketing Professional Organization (SEMPO) 
SEMPO is a global non-profit organization serving the search engine marketing industry and marketing professionals engaged in it. Its purpose is to provide a foundation for industry growth through building stronger relationships, fostering awareness, providing education, promoting the industry, generating research, and creating a better understanding of search and its role in marketing.

Representing thousands in over 30 countries, SEMPO has more than 850 members. It represents the common interests of companies and consultants worldwide and provides them with a voice in the marketplace. SEMPO’s education and outreach initiatives are funded in part by Microsoft, Yahoo!, Google, Superpages.com, ABC Search, SMX and Search Engine Strategies.

 

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