US Paid Search Grow 19%,in 2012, Mobile Search to see huge traction

The (SEM) industry  in  North American  is expected to  reach $23B by the end of 2012, which is an 19% increase from  $19.3B in 2011, according to Econsultancy Report released in September 2012 This valuation includes spending on paid search marketing and search engine optimization (natural search), and on search engine marketing technology. It excludes social media marketing spending (but does include pay-per-click or PPC ads on social networks).

Nearly 900 search marketers responded to this year’s survey, which was conducted online between March 12 and May 15, 2012. Survey takers represent 36 countries, with about 64 percent being in the US. Among the key drivers changing the SEM industry includes

1)Changes to the Google algorithm  was  the single most cited  reason  why SEO and Brands were concerned   87% call the updates of the last 12-18 months “significant or highly significant.”This refers to Google’s Panda and Penguin algorithm update in  February 2011 and has undergone numerous updates since, as well as to the Penguin update that happened in late April. It hasn’t had nearly as many updates as Panda, but Google has warned about “jolts” still to come.)

2)The  mobile internet is being touted as the next big thing and Mobile Search is expected to gain huge traction  still keeping search marketers up at night, with 88% describing it as “significant or highly significant” up from 79% in 2011.

3)Integration and attribution :While  paid search was among the  the largest part of many digital budgets, marketers wanted to understand how this affects users and its overall impact, its interactions with other marketing channels and its effect on the whole customer journey.

 
4)Google's Adwords advertising still rules advertisings share of mind as  Facebook PPC shows signs of stagnating  in 2010/2011 seem to be reevaluating. The 2012 survey shows a drop in those reporting they regularly mount PPC campaigns on the social giant, down from 74% to 56%.

5)A whopping 86% of respondents predict digital budget growth, up from 77% in 2011, with 37% calling that growth “significant.