Marketers cautiously optimistic about mobile search: SEMPO

By Giselle Tsirulnik

April 8, 2009

Spot the opportunity

Online advertisers are showing an increasing willingness to expand marketing channels through 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.

Social media also continues to build market share as more than 40 percent 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.

"Marketers are being cautiously optimistic on mobile search, even in a time of budget challenges," said Kevin Lee, chairman/CEO of Didit, New York. "While there is growing interest in new platforms for search marketing such as video and mobile search, there is a distinct unwillingness to pay more for these relatively untested vehicles."

SEMPO is a global nonprofit 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.

SEMPO previously reported that survey findings project 2009 search engine marketing spending to rise to $14.7 billion, with long-term spending to reach $26.1 billion in 2013.

SEMPO's online survey by Radar Research was completed by 890 search engine advertisers and SEM agencies and administered via IntelliSurvey Inc.

Survey respondents are overwhelmingly interested in behavioral targeting opportunities. In fact 75 percent 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.

Respondents are warming up to mobile.

Approximately 48 percent 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 percent premium.

"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, said Sara Holoubek, president of SEMPO and corporate strategy consultant. "These forces are still in the early stages but clearly the consumer is embracing these new channels with enthusiasm."