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UK search engine marketing industry booming

17 May 2005

The UK search engine marketing (SEM) industry will be worth an estimated £600 million by the end of this year, according to new research.

E-consultancy, which tracks online marketing trends, claims there has been a 70 per cent increase in search engine marketing spend since last year and predicts that growth will continue.

Google and Yahoo! are both expanding their sponsored search services, while sectors such as travel, gambling, recruitment, automotive and property are increasingly investing in search engine advertising.

E-consultancy said Microsoft's new MSN Search and Google Local services would help fuel further growth, with significant increases in the small business market.

Ashley Friedlein, E-consultancy CEO, forecast that the launch of MSN's proprietary search engine and paid-listings will lead to a further increase in demand for specialist search marketing services.

"There's also the increase in spending on organic search, which could spark sector-specific search wars, as companies up the ante and jostle for position," he added. "Then there's the impact of Google Local on the SME fraternity. There really is a lot going on - it is a good time to be in search marketing."

The vast majority of SEM cash, around 84 per cent, is spent on paid for listings. Certain terms, such as 'cheap flights' are over-subscribed, a process known as keyword inflation, and companies are returning to search engine optimisation as a result.

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