SEM and SEO spending expected to continue increasing, while online sales continue to bolster retailers
According to eMarketer, in spite of growing recessionary concerns U.S. marketers are likely to boost spending by as much as 16 percent in 2009 across the four basic forms of search engine marketing (paid search advertising, contextual advertising, paid inclusion, and search engine optimization.) Investment is expected to grow to from $12.2 billion last year to $14.1 billion this year. In addition, they suggest that by 2013 such spending could exceed $23 billion annually. Another strong upward trend is in the area of search engine optimization, where eMarketer predicts that the size of the SEO industry could almost double in the next five years.
Anecdotal evidence from retailers selling online would appear to support the validity of making these investments. In its annual report filing, Kohl’s just announced a 48% jump in Internet sales in 2008, joining Macy’s and Saks among retailers who have seen online success despite the recession. This followed a strong ‘07 for Kohl’s, where online sales grew over 30%. In the case of Macy’s and Saks, even as poor performing stores were being closed down their online sales were increasing. What this means is that their brand was still resonating with Internet shoppers.
Online marketing for retailers is more than just SEM and SEO however. In the case of Kohl’s, they struck timely deals with AOL, MSN and Yahoo during the holidays with eight home page takeovers, plus they offered regular “deal of the day” internet-only discounts on their web site.
The argument for investing in online brand development and selling via SEM, SEO and web site activities remains compelling, especially in these hard economic times.
