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Paid Search Technology Needs To Evolve: Study

Written on
Oct 15, 2008 
Author
Kathleen  |

growth12.jpgADOTAS – Paid search is suffering growing pains, according to new research from JupiterResearch, a Forrester Research company. The study, commissioned by Marin Software, found that spending on paid search advertising is expected to reach more than $26.8 billion by 2009.

Furthermore, 92% of large search marketers would increase their PPC spend an average of 22% if major technology and management impediments were resolved.

“While paid search market growth remains strong, our research shows that the industry has matured to a point where new technologies and approaches are needed to support and evolve large search marketing programs,” said Kevin Ryan, search industry marketing expert and CEO of Motivity Marketing. “Next-generation search management applications are now hitting the market and quickly gaining in popularity, which should facilitate increased spending at the company level and drive additional growth in the search industry as a whole.”

Other key takeaways from the study:
Search Marketing is Becoming Increasingly Complex
• 85% of marketers responded that the complexity of paid search management is growing.
• 44% said that running a well-managed, large-scale search marketing campaign is more difficult than running an election campaign for public office.
Search Marketers Would Spend More if They Had the Right Technology
• Respondents said they would spend an average of 22% more on paid search advertising if they had access to the tools and techniques they need to manage larger paid search programs.
• 92% of companies would increase PPC spend if key impediments were resolved in PPC management.
• Many search marketers manage all aspects of their search campaigns through Microsoft Excel rather than through one single solution; 77% said their paid search campaigns would be more effective it they could manage them all from one application.
Marketers Spending More than $500K Per Month Are Having the Most Trouble
• 78% believe managing large keyword lists is cumbersome.
• 59% cite they currently have insufficient personnel to manage their paid search campaigns
• 69% said existing applications are not robust enough for their needs.

Still, search remains a priority, Jupiter found.

“Search marketing has become a strategic imperative for many companies, but the lack of technology and infrastructure to support search marketing poses a serious problem for advertisers looking to grow their PPC spend. This represents a potential Achilles heel for search industry growth.” said Marc Barach, chief marketing officer of Marin Software. “The next wave of paid search growth will rely on large advertisers using professional second-generation applications to manage the complexity of their PPC programs, so they can cost-effectively grow their program spend without requiring added resources.”





Kathleen comes to ADOTAS with almost a decade of writing experience at consumer and business publications. Most recently, she was an editor at First Magazine. Before that, she was an editor at The New York Sun and Thomson Financial’s Investment Management Weekly.

Reader Comments.

Hey there. I was curious what the title of the JupterResearch report you cited was.

Posted by Jake | 11:08 am on October 23, 2008.

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