Paid search remains the brightest light of the online media mix, exhibiting the fastest area of growth. $3 billion was spent on Internet advertising in Q2 2005, with paid search accounting for 40% of that total, according to a just-released Interactive Advertising Bureau’s Pricewaterhousecoopers report. The first half of 2005 set a record for online ad spending, totaling $5.8 billion, up 26% from last year.

Let’s remind ourselves why it is that search ads are so popular: every day, the Web is increasingly used to research purchases. Search ads most effectively reach ready-to-buy consumers.

Other studies reveal another lure for marketers: interactive and online media is the best way to influence behavior. Traditional media is no longer as effective, though it’s still a valuable way to raise awareness.

Search now has the proven track record that traditional direct marketers needed to see. Direct magazine's "2005 Online Marketing Survey" showed that nearly 60% of direct marketers will be shifting budget away from traditional channels to online spending in 2006. Most of that money is being funneled into search engine marketing, analytics and Web site customization. This shift is being referred to as a “mini-boom,” with about 41% of budgets now being spent online.

The mini-boom is being led by medium- to large-size enterprises. Case in point is Ford’s expansion to online beginning last fall when they stated they would generate “more than 1 billion consumer impressions” in a single quarter.

"I have to sell traditional advertising more than I have to sell online advertising, in some cases,” said Brad Brinegar, CEO of McKinney, Research Triangle’s largest ad firm.

While statistics can seem distant and generalized, they should stimulate you to think about your marketing strategies: are you optimizing your budget by using the trackable methods available online? Do you know what the purchase cycle “sounds like” as your customers type their research and purchase intents into a search box at Google or the search box at your site? Are you using offline and online methods to your best advantage, raising awareness through traditional outlets and influencing customer loyalty with your online presence?

Before you jump into planning for next year’s budgets, take some time to bask in the search light to realize what it can do for your business. Considering the countless success stories from household name companies to small businesses, make sure that your business integrate spaid search and its highly influential partner, site search, into your plans.

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