Numbers don’t lie – SEM/SEO is the way to go
Although there are no search engine optimization and marketing results for Toronto, the trends in North America and Europe are instructive. Here are some recent reporting numbers:
- Bizreport.com notes that 55% of companies in the UK plan to increase search engine optimization budgets in 2009, while 45% plan to increase their budgets for paid search.
- The study also notes that companies (or their SEO consultants) are getting better at measuring ROI and noticing improved ROI with search engine marketing.
- Businesses are getting better at search engine optimization, too: 48% performed better in 2008 in organic optimization than the year before. Only 6% reported that their optimization campaigns were less effective in 2008.
Other studies have shown that companies that spend more on marketing and search engine optimization are “cannibalizing” their traditional ad budgets to fund their online campaigns:
- The European Association for Interactive Advertising reports that 70% of the advertisers they surveyed increased the amount they spent on online advertising in 2009 by reallocating TV, newspaper and magazine advertising budgets.
- In its State of Search Engine Marketing 2008 report, SEMPO observed the same type of changes in advertising budgets in North America. The biggest cuts were in print magazines, direct mail, and print newspapers.
- SEMPO also reported a drop of around 15% in website development budgets, with companies placing more emphasis on SEM than building their websites. In other words, companies seem to be spending more time on online marketing efforts like link building than adding bells and whistles to their websites.
What are these companies earning from their online marketing efforts? The SEMPO study shows that most companies that invest in this type of marketing do so to increase brand awareness and sell products and services online. What the numbers mean for Toronto businesses Clearly, this strong shift toward online marketing indicates its effectiveness, especially when compared to traditional advertising. Expensive newspaper, magazine and TV ads are becoming less popular as companies master the art of online marketing (or hire a SEM/SEO company to do it for them). As both inside marketers and marketing firms gain experience in the field of marketing and search engine optimization, they see greater returns on an investment that is much more affordable than traditional advertising.