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January 11, 2006

Search engine marketing booming

The popular practice of using search engine results are an advertising vehicle continues to gain popularity among specialized internet marketing and advertising firms rise according to new industry research by the Search Engine Marketing Professional Organization.

By CBR Staff Writer

Spending on search advertising, a contentious technique used by online marketers to boost website rankings by purchasing paid-for ad listings, spiked 44% in 2005. Unsurprisingly, internet search firms like Google Inc and Yahoo! Inc lead the way. The industry research showed that online advertisers spent a whopping $5.75bn on search marketing last year. This figure is forecast to rise to $11bn by 2010.

Paid placement purchased from a portal or search network, typically in auction environments where keywords and phrases are associated with a cost-per-click fee, accounted for as much as 80% of the spend. Meanwhile web site optimization to draw better search rankings drew 11%. Paid inclusion garnered 4% of the spend with the remainder going to agency solutions and in-house development.

Not surprisingly Google and Yahoo more or less mopped up the market for search engine marketing on the web.

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