Search Marketing Works for Online US Retailers [3/11/2008]

Now that US retailers know that search engine marketing works, they plan to increase their spending in this area.

What proof do they have and where do they plan to spend more money? Following are some stats from an Internet Retailer-sponsored study conducted in February 2008 by Vovici.

PPC Success: A bit more than 64% of survey respondents divulged that their pay-per-click (PPC) conversion rates were higher than 5%. The industry accepted success rate is well below that, ranging from 1.5% to 3%.

Budget Dollars: Of the online retailers surveyed, more than half reported spending a minimum of 40% of their ad budgets on search engine marketing (SEM). Of these 25% spent more than 75% of their budgets on SEM.

What accounts for this internet marketing success? Industry experts attribute it to retailers fine tuning their marketing efforts, bidding more on product-specific and SKU words and phrases, instead of generic, industry words and phrases.

Internet marketing is here to stay. This US trend of increased SEM spending is expected to last through at least 2011, according to eMarketer.

For more insight visit Pay Per Click Services

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