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3rd Annual Japanese SEM Market Research (May 2007)

 

3rd Annual Japanese SEM Market Research

-- May 2007 --

 

Purpose: Grasp the SEM usage condition in Japan

Size: SEM user – 121
Non-SEM user – 21

SEM agencies – 7

Type: Online (web)

Date: May 2007

 

1.     Overall Questions About SEM

a.     Q1: What type of SEM services do you use?

i.      SEO only – 36.4%

ii.     Paid ads only – 10.7%

iii.    Paid inclusion only – 2.5%

iv.    SEO and paid ads (about 50/50) – 19.0%

v.     Mainly SEO with some paid ads – 18.2%

vi.    Mainly paid ads with some SEO – 12.4%

vii.   Others – 0.8%

viii.  No response – 0.0%

 

  1. Q2: What’s the main purpose of the SEM?

i.      Branding company – 45%

ii.     Branding products and services – 33%

iii.    Online sales – 9%

iv.    Obtaining the leads (requests for information, membership registration, etc.) – 7%

v.     Tie-up with off-line advertising and marketing activities – 3%

vi.    Others – 2%

vii.   No response – 0%

 

  1. Q3: How much did you spend for SEM in 2006? (in Yen)

i.      SEO:

2.     1 – 1.2mil – 43%

3.     1.2mil – 3.6mil – 21.5%

4.     3.6mil – 12mil – 5.0%

5.     12mil – 60mil – 3.3%

6.     60mil and up – 1.7%

7.     No budget – 25.6%

8.     No response – 0.0%

 

ii.     PPC:

1.     1 – 1.2mil – 27.3%

2.     1.2mil – 3.6mil – 14.0%

3.     3.6mil – 12mil – 9.1%

4.     12mil – 60mil – 4.1%

5.     60mil and up – 1.7%

6.     No budget – 43.8%

7.     No response – 0.0%

 

iii.    Access Log Analytics:

1.     1 – 1.2mil – 35.5%

2.     1.2mil – 3.6mil – 9.1%

3.     3.6mil – 12mil – 1.7%

4.     12mil – 60mil – 2.5%

5.     60mil and up – 1.7%

6.     No budget – 49.6%

7.     No response – 0.0%

 

iv.    Social Media:

1.     1 – 1.2mil – 19.0%

2.     1.2mil – 3.6mil – 9.1%

3.     3.6mil – 12mil – 1.7%

4.     12mil – 60mil – 2.5%

5.     60mil and up – 0.8%

6.     No budget – 66.9%

7.     No response – 0.0%

 

v.     Mobile SEO:

1.     1 – 1.2mil – 14.9%

2.     1.2mil – 3.6mil – 8.3%

3.     3.6mil – 12mil – 1.7%

4.     12mil – 60mil – 3.3%

5.     60mil and up – 0.8%

6.     No budget – 71.1%

7.     No response – 0.0%

 

vi.    Mobile PPC:

1.     1 – 1.2mil – 12.4%

2.     1.2mil – 3.6mil – 9.1%

3.     3.6mil – 12mil – 3.3%

4.     12mil – 60mil – 3.3%

5.     60mil and up – 0.8%

6.     No budget – 71.1%

7.     No response – 0.0%

 

  1. Q4: What’s your budget for SEM in 2007? (in Yen)

i.      SEO:

1.     1 – 1.2mil – 49.6%

2.     1.2mil – 3.6mil – 17.4%

3.     3.6mil – 12mil – 6.6%

4.     12mil – 60mil – 4.1%

5.     60mil and up – 1.7%

6.     No budget – 20.7%

7.     No response – 0.0%

 

ii.     PPC:

1.     1 – 1.2mil – 29.8%

2.     1.2mil – 3.6mil – 19.8%

3.     3.6mil – 12mil – 9.9%

4.     12mil – 60mil – 3.3%

5.     60mil and up – 1.7%

6.     No budget – 35.5%

7.     No response – 0.0%

 

iii.    Access Log Analytics:

1.     1 – 1.2mil – 36.4%

2.     1.2mil – 3.6mil – 9.9%

3.     3.6mil – 12mil – 4.1%

4.     12mil – 60mil – 3.3%

5.     60mil and up – 1.7%

6.     No budget – 44.6%

7.     No response – 0.0%


 

iv.    Social Media:

1.     1 – 1.2mil – 19.8%

2.     1.2mil – 3.6mil – 9.9%

3.     3.6mil – 12mil – 4.1%

4.     12mil – 60mil – 2.5%

5.     60mil and up – 1.7%

6.     No budget – 62.0%

7.     No response – 0.0%

 

v.     Mobile SEO:

1.     1 – 1.2mil – 20.7%

2.     1.2mil – 3.6mil – 9.9%

3.     3.6mil – 12mil – 3.3%

4.     12mil – 60mil – 3.3%

5.     60mil and up – 0.8%

6.     No budget – 62.0%

7.     No response – 0.0%

 

vi.    Mobile PPC:

1.     1 – 1.2mil – 16.5%

2.     1.2mil – 3.6mil – 10.7%

3.     3.6mil – 12mil – 3.3%

4.     12mil – 60mil – 3.3%

5.     60mil and up – 0.8%

6.     No budget – 65.3%

7.     No response – 0.0%

 

  1. Q5: Which budget did you shift the money from for SEM budget?

i.      Web design and development – 19.9%

ii.     Shopping mall fee – 5.0%

iii.    Affiliate program – 6.4%

iv.    Banner ads – 10.5%

v.     E-mail marketing – 7.0%

vi.    Magazine ads – 6.7%

vii.   Newspaper ads – 7.0%

viii.  TV ads – 2.9%

ix.    Radio ads – 2.0%

x.     PR cost – 6.1%

xi.    Sales and marketing – 6.4%

xii.   Direct mailing – 5.0%

xiii.  POS – 1.2%

xiv. Events, etc. – 3.5%

xv.  Phone book (Town page, etc.) – 2.3%

xvi. Tele-marketing – 2.3%

xvii.New budget – 4.1%

xviii.             Others – 1.5%

xix. No response – 0.0%

 

  1. Q6: How important is SEM to your business?

i.      Most important – 19.0%

ii.     Very important – 69.4%

iii.    Not so important – 8.3%

iv.    Not important at all – 3.3%

v.     No response – 0.0%

 

  1. Q7: Are you satisfied with the SEM results?

i.      Very satisfied – 5.8%

ii.     Satisfied – 31.4%

iii.    OK – 53.7%

iv.    Not satisfied – 7.4%

v.     Very disappointed – 1.7%

vi.    No response – 0.0%

 

2.     About SEO

  1. Q8: Who manages your SEO?

i.      100% in-house – 44.6%

ii.     100% outsource to SEM agencies – 15.7%

iii.    Mainly in-house with some outsourcing to SEM agencies – 25.6%

iv.    Mainly outsource to SEM agencies with some in-house work – 11.6%

v.     Others – 2.5%

vi.    No response – 0.0%

 

  1. Q9: Where is your 2007 SEM budget allocated?

i.      New budget – 21.2%

ii.     New and some from Internet related advertising budget – 20.7%

iii.    From off-line advertising budget – 8.9%

iv.    New + Internet advertising + web design budget – 5.9%

v.     New + web design budget – 10.3%

vi.    From web design budget – 15.8%

vii.   From other SEM budget – 4.9%

viii.  From non-SEM Internet budget – 4.9%

ix.    From mobile advertising budget – 2.5%

x.     From off-line advertising budget – 2.5%

xi.    Others – 2.5%

xii.   No response – 0.0%

 

  1. Q10: Are you satisfied with the current SEM results?

i.      Very satisfied – 5.8%

ii.     Satisfied – 30.6%

iii.    OK – 54.5%

iv.    Not satisfied – 6.6%

v.     Very disappointed – 2.5%

vi.    No response – 0.0%

 

3.     About Paid

  1. Q11: Who manages your PPC campaign?

i.      100% in-house – 37.2%

ii.     100% outsourced to agencies – 22.3%

iii.    Mainly manage in-house and some outsourced to agencies – 19.0%

iv.    Mainly outsourced to agencies and some manage In-house – 12.4%

v.     Others – 9.1%

vi.    No response – 0.0%

 

  1. Q12: How do you cope with rising bidding cost?

i.      Improve web site for better conversion rate – 24.5%

ii.     Review current bidding strategy and the campaign operation – 20.6%

iii.    Change the agency (currently outsourced to agency) – 10.3%

iv.    Use the agency (currently managed in-house) – 9.8%

v.     Use new tool – 11.3%

vi.    Strengthen access log analysis – 15.7%

vii.   Stop PPC campaign – 4.9%

viii.  Others – 2.9%

ix.    No response – 0.0%

 

  1. Q13: Where is your PPC campaign budget allocated?

i.      New budget – 31.4%

ii.     New budget with other Internet advertising budget – 23.5%

iii.    New budget with off-line advertising budget – 18.3%

iv.    From other Internet advertising budget – 11.8%

v.     From off-line advertising budget – 8.5%

vi.    Others – 6.5%

vii.   No response – 0.0%

 

  1. Q14: Do you have any concerns about the click fraud?

i.      Not concerned at all – 17.4%

ii.     Somewhat concerned – 47.1%

iii.    Concerned – 26.4%

iv.    Very concerned – 9.1%

v.     No response – 0.0%

 

  1. Q15: Are you satisfied with the paid campaign results?

i.      Very satisfied – 6.6%

ii.     Satisfied – 19.8%

iii.    OK – 62.8%

iv.    Not satisfied – 8.3%

v.     Very disappointed – 2.5%

vi.    No response – 0.0%

 

4.     Using SEM Agencies

  1. Q16: Have you used SEM companies?

i.      SEM total consulting (both SEO and paid) – 18.2%

ii.     Overall SEO work – 14.0%

iii.    Consultation work for SEO only – 9.9%

iv.    SEO campaign only – 5.8%

v.     Overall paid campaign – 5.0%

vi.    Consultation work for paid only – 2.5%

vii.   Paid campaign only – 2.5%

viii.  Paid campaign’s bid management only – 0.0%

ix.    SEM reporting and results measurements – 2.5%

x.     Never used SEM companies – 21.5%

xi.    Used SEM companies before, but not currently – 1.7%

xii.   Not using SEM companies now, but maybe in a future – 16.5%

xiii.  No response – 0.0%

 

  1. Q17: What do you think of SEM companies knowledge, technologies, and services?

i.      They are very knowledgeable – 15.3%

ii.     They have great technologies – 11.6%

iii.    They give detailed explanations for problems and work procedures – 12.7%

iv.    They provide effective SEO services – 14.9%

v.     They provide effective paid campaign management services – 9.0%

vi.    They provide high quality result measurement services – 7.1%

vii.   They don’t have great knowledge – 7.5%

viii.  They don’t have great technologies – 6.7%

ix.    They don’t give detailed explanations – 4.5%

x.     Their SEO services are not that effective – 3.4%

xi.    Their paid campaign management services are not that effective – 1.9%

xii.   Their results measurement services are not that high quality – 4.5%

xiii.  Others – 1.1%

xiv. No response – 0.0%

 

  1. Q18: What’s the main purpose of your mobile SEM campaigns?

i.      Company recognition and branding – 20.2%

ii.     Products and services recognition and branding – 20.2%

iii.    Online sales – 12.8%

iv.    Online leads (including requests for materials and membership registrations) – 10.6%

v.     Leads to retail stores – 7.4%

vi.    Tie-up with off-line advertisings and marketing activities – 4.8%

vii.   Not doing SEM on mobile – 23.9%

viii.  Others – 0.0%

ix.    No response – 0.0%

 

  1. Q19: Do you plan to have SEM campaigns on mobile?

i.      No plan to do SEM on mobile – 19.0%

ii.     Plan to do some in future – 34.7%

iii.    Keep current level of SEM campaigns on mobile – 32.2%

iv.    Plan to do aggressive SEM campaigns on mobile – 14.0%

v.     No response – 0.0%

 

  1. Q20: Do you do contents match paid campaign?

i.      Yes – 22.3%

ii.     No – 56.2%

iii.    I don’t know much about contents match paid campaign – 21.5%

iv.    No response – 0.0%

 

5.     Non-SEM Users

  1. Q21: What’s the reason for not doing SEM?

i.      Happy with current results – 20.0%

ii.     Don’t think it will bring results – 8.0%

iii.    Don’t know much about SEM – 20.0%

iv.    It seems to be time consuming – 4.0%

v.     Don’t know what SEM is – 32.0%

vi.    Don’t know which SEM service provider to hire – 8.0%

vii.   Don’t have enough budget for it – 8.0%

viii.  Others – 0.0%

ix.    No response – 0.0%

 

  1. Q22: Do you plan to do SEM in future?

i.      Think it would work and want to do it very soon – 19.0%

ii.     Think it would work, but no plan – 19.0%

iii.    Don’t think it work, but planning to do since competitors are doing it – 4.8%

iv.    Don’t think it work, and have no plan – 9.5%

v.     Not interested – 47.5%

vi.    No response – 0.0%

 

  1. Q23: What type of SEM services are you interested in?

i.      SEM (SEO and paid) – 17.9%

ii.     Banner ads / tie-up ads – 10.3%

iii.    Mail ads – 10.3%

iv.    Affiliate programs – 12.8%

v.     Personalization / recommendation – 0.0%

vi.    CRM (e-mail marketing, net incentives, etc.) – 5.1%

vii.   Mobile SEM (SEO and paid) – 0.0%

viii.  SEO on blogs and social medias – 10.3%

ix.    Set up a shop at online shopping mall – 5.1%

x.     7.7%

xi.    Banner ads – 5.1%

xii.   E-mail ads – 10.3%

xiii.  Others – 5.1%

xiv. No response – 0.0%

 

  1. Q24: Do you know anything about SEM?

i.      Don’t know, not sure – 71.4%

ii.     I know, but not doing it – 28.8%

iii.    No response – 0.0%

 

6.     SEM Agencies

  1. Q25: What SEM services do you provide?

i.      SEO only – 0.0%

ii.     Paid only – 20.0%

iii.    Results measurement tools only – 0.0%

iv.    Link building only – 0.0%

v.     Total SEM services (SEO, paid, etc.) – 20.0%

vi.    SEM and other net marketing services – 60.0%

vii.   SEM and other marketing services (including off-line) – 0.0%

viii.  Providing SEM services as a part of other main services – 0.0%

 

  1. Q26: What are some of the challenges you experienced?

i.      Tougher competition for top ranking – 30.8%

ii.     Click fraud – 7.7%

iii.    Higher bidding cost – 15.4%

iv.    Carrying out SEM campaigns for multiple search engines – 7.7%

v.     Carrying out SEM campaigns for multiple markets (countries, regions, and languages) – 0.0%

vi.    Selecting target search engines for SEM – 7.7%

vii.   Measuring SEM results – 0.0%

viii.  Deciding broad match or exact match – 7.7%

ix.    Deciding to run contents match campaign or not – 7.7%

x.     Tool capability and capacity – 7.7%

xi.    Losing ranking at natural search results – 7.7%

xii.   No response – 0.0%

xiii.  Others – 0.0%

xiv. No response – 0.0%