Search Engine Marketing to Grow to $18.6 Billion

According to the Search Engine Marketing Professional Organization (SEMPO), search engine marketing is in for an impressive growth spurt, growing to almost $19 billion in 2011. For an industry that didn't really exist until 2001, that fairly impressive growth in 10 years.

We think this is low, and does not reflect all the various spin-offs from search engine marketing, including search based video ads that are coming, display-based ads and keyword driven marketing. Also contextual ads are not included by SEMPO as they are not technically 'search-based'. Online ads are becoming contextual in nature, so even if the ad is not search driven, it is displayed based on what you are reading or viewing which is increasingly driven by keywords.

We're still at the 'beginning of TV' for online advertising. Meaning there are variations we haven't even thought of that are still to come. Speaking of which, there are agencies that specialize in combining TV commercials and search engine marketing. This is very effective marketing, creating interest on a large scale, and then ensuring that interest can be directed to a website via a search.

Sure we're biased but if you only saw a bit of what we see coming down the pike in online advertising and marketing, you'd be impressed too. Expect a sea change in the advertising and marketing industries in the next 10-20 years.

You don't really think Google is giving away free wireless high speed Internet in major cities just for the heck of it do you? Or the iPhone to be the last of its kind?

Times Are A-Changing - Online

To borrow a line from Bob Dylan, things are changing online. For example - more clothes is sold online now than computer hardware now. Something I never thought I would happen, given that most people are used to going to retail stores to buy clothes.

Another change that is more subtle, is almost 90% of restaurants in the U.S. have a website now. This survey was done AIS Media, who surveyed 6000 restaurants. More and more websites are putting their menus online, and email was being used as the primary way to communicate by 68% of survey respondents. Even more surprisingly, 29% sent out a monthly targeted email campaign.

What's not surprising is this is a great way for a retail business to bring back customers and nurture new ones. Coupons are common in the retail food business and email is a great way to get them out AND get them forwarded to their friends and family as well to get new customers.

The survey goes on to say that the majority of these establishments use a professional services firm to provide this capability. It goes on to say that 'With over 89% of restaurants in America currently having a website, the competition for restaurants will be to have a highly specialized website that speaks to their specific clientele', said Thomas Harpointner, CEO of AIS Media, Inc.

These changes remind me of something that Bill Gates said 20 years ago. 'People overestimate how fast technology will be adopted, and underestimate how widely it will get adopted'. I think the world's richest man still has that right.