The growth in size and diversity of search campaigns will accelerate search engine marketing (SEM) outsourcing," said Sapna Satagopan, Research Associate at JupiterResearch and lead author of the report.

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(Continued) The RFS Newsletter, Jun. 10, 2006. Page 8
"The growth in size and diversity of search campaigns will accelerate search engine marketing (SEM) outsourcing," said Sapna Satagopan, Research Associate at JupiterResearch and lead author of the report. "More than fifty percent of large marketers outsource at least one of their search marketing services." The report also finds that investments and overall spending on search engine marketing grew last year. Almost 24 percent of search marketers spent more than $500,000 on SEM campaigns last year, compared with 12 percent two years ago.

The increase in spending will force competitors as well, effectively pushing smaller marketers to optimize their campaigns, in an effort to better compete in the search marketplace. In 2006, about 65.9 percent of marketers plan to boost their search marketing spending. This number climbs to around 72 percent when referring to sophisticated marketers, or those who use bid management tools and Web analytics packages.

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