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SEO Growth Rate

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According to the Marketing Sherpa Annual report, spending on search engine optimization has only grown 6.7 percent over last year (.74 billion in 2005.) They were predicting that the SEO industry would break one billion in 2006 but it came in at .79 billion.

If you do they math, that means that they originally projected a 35 percent increase. The resulting 6.7 percent means that they were way off. However, they are pretty open about it in the article. I think that owning up to mistakes is very respectable (its the window and the mirror lesson we learn about in Good to Great by Phil Collins.)

Some other points that I thought were interesting:

  • 75% (last year and this year) of SEO is kept in-house.
  • In 2005, marketers who outsources SEO saw a 110% lift in traffic over six months and and those who kept it in-house saw a 73% lift. This mean that if you hire a SEO experts you will get significantly better results.
  • of top 44 B2B software firm, 28 percent were not well optimized for keywords central to their business.
  • Return on investment of SEO was pushing 70%
  • The eye tracking map that they ran on a Google search result page (see page 10)

This entry was posted on Friday, September 22nd, 2006 and is filed under SEO. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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One Response to “SEO Growth Rate”

  1. Mike Ebert Says:
    September 27th, 2006 at 7:44 pm

    I personally believe (without any data to back up my opinion at this point) that the two reasons the Internet marketing industry hasn’t grown faster are: first, there is a shortage of trained personnel. Hiring is a major problem for Internet marketing firms. Second, the Marketing Sherpa annual report summary mentioned that all the growth was account/budget growth. It might be that there is a rate of adoption by new companies that is keeping growth slow - the people who aren’t doing Internet marketing don’t get it yet.

    With 28% of large B2B firms (not to mention all the B2C and mom-and-pop shops) under-marketed and a ROI of 70%, the industry may just be catching its breath before another significant run-up.

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