In its new
Search Engine
Marketing: Search Users and Usage report, eMarketer explores the
actions and attitudes of search users, the people who monetize search by
their clicks.
"I think a lot of search
and advertising professionals are going to be surprised," says David
Hallerman, eMarketer Senior Analyst and author of the report.
"The good news is that the
growth of paid search ad spending is flattening out," he says. "Yes, you
heard me right. That's good news. In an industry once-burned by
bubble-and-burst expansion, Internet advertising is best served when its
most effective vehicles show steady, and less hyped growth."
After several years of
three-figure increases, and over 50% in 2004, spending jumps for paid search
this year and in the years to follow will be in the healthy teens.
"As the paid search market
matures," says Mr. Hallerman, "involved companies will look for additional
ways to build their bottom line through search. This will include greater
spending on tools such as search engine optimization, which boosts organic
search rankings, and broadening the paid search base with superior
implementation of local search, contextual advertising, and vertical
search."
Things really get
interesting when you look behind the numbers - to understand the clicker.
"Remember," says Mr.
Hallerman, "paid search is unlike any other form of advertising, whether
online and offline. That's because it's the recipient of the ads-not the
advertiser or the publisher-who determines if and when any ad becomes
monetized. An advertiser can have the highest bids, and top ranking, for
major keywords; and the search engine can be the most popular among Internet
users. But until the consumer or businessperson clicks on the ad, no money
exchanges hands."
With such financial power
in the hands of individuals, even if unwitting in most cases, it becomes
essential to make them, and keep them, happy. But most advertisers have
little idea what users really want from search, whether paid placement ads
or natural listings, or how they use it.
From the consumer's
perspective, search engines are a vital part of their Internet experience.
Nearly one-third of US adult Internet users told Pew Internet & American
Life Project that they couldn't live without search engines. Meanwhile, 50%
of respondents said that while they like using search engines, they could go
back to other ways of finding information.
One suspects that if search
engines actually disappeared from the Internet, many among that 50% group
would switch replies to "couldn't live without."
That users tend to be
highly satisfied with their search engine experience is supported by
research showing that 89% have had a "strongly positive" experience with
Google, and 68% say the same about Yahoo!. Even if fewer respondents feel
just as strongly about other search engines such as Ask Jeeves and MSN, that
doesn't mean their experience hasn't been positive.
One factor sustaining the
growth of paid search comes back to its unique position among advertising:
the user's control. A noteworthy survey from Yankelovich last year,
regarding US consumer's attitudes toward marketing and advertising, found
that 61% feel the amount of marketing and advertising is out of control.
Since users can react to or
ignore search engine ads, at will, that greater control encourages greater
responsiveness to relevant ads. Relevancy is also key, since 59% of
respondents feel that most marketing and advertising has very little
relevance to them.
From the advertiser's point
of view, the key reasons for using search engine marketing include selling
products, services, or content online (at 58% total); generating leads (at
54%); and, perhaps surprisingly - considering the direct response nature of
most search marketing - to increase or enhance brand awareness (at 61%).