Searching for the answer to these and other questions in expert opinions, the latest industry reports and our own corporate experience, we’ve found that 2004 has brought about a shift in the way search engine marketing is perceived by large national advertisers. Search is now regarded as a marketing priority instead of a choice.

Dubbed as Internet marketing’s most hypergrowth-oriented sector, search has been a driving force for online advertising. In the second quarter of 2004 alone, search ad spending reached nearly $1 billion (947 million), accounting for 40 percent of all online ad spending, up from 29 percent the previous year.

Search engine marketing agencies are reporting that Fortune 500 advertisers are increasingly seeking their aid in securing a name for themselves in search engines. Other evidence reinforces search’s adoption in mainstream marketing as it garners budget preference from VPs instead of only Webmasters.

Major national advertisers will continue to shift their budgets away from Web site development, IT infrastructure and research and development into online media. They view the online world as a place where they can spend relatively few dollars to gain similar or higher brand awareness as competitors.

It’s not just that search works – it’s that advertisers’ audiences are online and advertisers are embracing that reality. 625 million searches are conducted worldwide every single day; that’s 228 billion searches a year. Search is the entry point for most online visitors.

A new study released by the Online Publishers Association (OPA), in conjunction with Frank N. Magid Associates, Inc., revealed that the Internet prevails as the medium of choice for 18 to 54-year-olds, edging out the old media standby, TV. Additionally, the Internet ranks very highly across all generations when compared to other more traditional media outlets.

The population turns to the Internet first for information about products, personal interests, music, gaming and entertainment. No longer just a research outlet, people of all generations are viewing the Internet as fun.

The online advertising industry reflects the positive consumer reception and continues its steady growth. The industry as a whole has enjoyed seven consecutive quarters of growth (soon to be eight once Q4 numbers come in) and 2004 will likely yield $7 billion in spending.

"The Internet has become pervasive," said OPA Presdient Michael Zimbalist. "Another key finding," Zimbalist added, "is the Internet has become so familiar, it is not a new medium anymore."

Indicators such as these suggest that search engine advertising will continue its rise in 2005 with growth of 25 to 30 percent. Niki Scevak, a JupiterResearch analyst, says, “Search is a very attractive advertising market that's growing faster than any other…"

And with that, dear readers, we look forward to sharing more of the Internet’s best practices in search and marketing. Stay tuned to next year’s newsletters, brimming with information on how to make the most of search, in all its forms and functions.

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