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June 8, 2009

Economics of Search Marketing -
Jun '09

Overview

The local search-advertising marketplace may be headed for a shakeout where less-sophisticated affiliates and resellers of search advertising could see their business models collapse and their advertisers flee. Scooping up the business will be savvy affiliates and resellers who are able to optimize SEM performance through software tools and reporting that show actual ROI to advertisers.

The Report Contains:

  • An overview of the search-advertising marketplace, which rose to $11.5 billion last year and is slated for continued growth as other media channels decline.
  • A review of the key players, from local advertisers, to search-engines like Google, search-advertising affiliates and resellers, and technologies.
  • An examination of key data that drive local advertising, including affiliate arrangements, churn rates, profitability, dollars devoted to actual keyword buys versus profit margins, and monthly advertiser spending levels.
  • Conclusions and outlook for the industry.

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