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Home | News | European SEM market to grow 65 per cent
European SEM market to grow 65 per cent
Thursday, 31 March 2005European search engine marketing (SEM) is set to enjoy a boom in 2005, a new report claims. New research from analyst Forrester predicts that the SEM market will grow by 65 per cent this year, compared to 2004, generating 1.4 billion in expenditure.
The company estimates that by 2010, European marketers will spend almost 3 billion on search marketing, up from 856 million in 2004. In the UK, the largest online ad market in Europe, search engine marketing, will grow to over 1 billion euros in 2010, boosted by marketing in travel, finance, auto, and retail.
Forrester Research predicts that small to medium sized enterprises are now set to include search marketing as part of their promotions strategy. The company also noted that the maturity of search marketing in Europe varies markedly by country. Hellen Omwando, consumer markets analyst at Forrester, said: "Growing numbers of online shoppers, online advertising budgets, and pay-for-performance search marketing models will attract both large and small firms. But while search spending will more than triple, its share in online advertising will decline by 2007, as consumer mistrust of paid listings takes effect, rich media ads gain prominence, and prices of keywords rise."
Forrester Research also noted that commercial search marketing includes paid listings, contextual search, site optimisation and paid inclusions.
The company estimates that by 2010, European marketers will spend almost 3 billion on search marketing, up from 856 million in 2004. In the UK, the largest online ad market in Europe, search engine marketing, will grow to over 1 billion euros in 2010, boosted by marketing in travel, finance, auto, and retail.
Forrester Research predicts that small to medium sized enterprises are now set to include search marketing as part of their promotions strategy. The company also noted that the maturity of search marketing in Europe varies markedly by country. Hellen Omwando, consumer markets analyst at Forrester, said: "Growing numbers of online shoppers, online advertising budgets, and pay-for-performance search marketing models will attract both large and small firms. But while search spending will more than triple, its share in online advertising will decline by 2007, as consumer mistrust of paid listings takes effect, rich media ads gain prominence, and prices of keywords rise."
Forrester Research also noted that commercial search marketing includes paid listings, contextual search, site optimisation and paid inclusions.