October 3, 2006, 12:00 AM

Search engine marketing increased nearly 50% in Q2, study says

Search engine marketing continued to grow at a rapid pace during the second quarter, with conversions, search spending and impressions increasing nearly 50% year-over-year, according to the Performics 50 index.

Paul Demery

Managing Editor, B2B E-commerce

 

Search engine marketing continued to grow at a rapid pace during the second quarter, with conversions, search spending and impressions increasing nearly 50% year-over-year, according to the Performics 50 index. Sales during the fourth quarter will surpass last year’s by 53%, Performics estimates.

“Online marketing is passing over a huge hurdle,” says Cam Balzer, director of search strategy at Performics Inc., a unit of online marketing products and services company DoubleClick Inc. “Experienced SEMs and program managers are harnessing the full value of search and realizing that maintaining an aggressively managed campaign online-one that drives online sales, offline sales, and increases brand awareness and maximizes your search budget-is critical to overall marketing success.”

Active keywords grew 58% year-over-year and total clicks rose 32% year-over-year, according to the report. However, after increasing throughout February and March, the average cost per keyword remained relatively stable throughout the second quarter, increasing only 14 cents, or less than 0.5%, from first-quarter averages. The average cost-per-keyword was $30 during the first quarter.

The report also found that more expensive keywords-those over $1 per click-received 20% more impressions in June, up from 14% in March. This increase in expensive keywords came both from increases in existing keyword prices as well as the addition of newer, more popular keywords, Performics says.

The quarterly Performics 50 search trends report draws from Performics’ larger pool of paid search campaigns the 50 that most closely represent the average number of monthly clicks across all campaigns. It excludes campaigns representing the top and bottom of all ranges.

 

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