2009 SEM Spending Up While Executive Confidence Down

by Matthew Diehl on July 21, 2009

So, do you want the good news or the bad news… Okay lets get the warm and fuzzies out of the way.

In a recent study released by Forrester Research, “Five-Year Interactive Marketing Forecast Report”, they projected a 105% increase in US search engine marketing (SEM) spending over the next five years. 2009 should close out at about $15.4 billion spent while they project 2014 to top the charts at $31.6 billion in spending.

Projected US SEM Spending

SEM still remains the largest part of interactive marketing budgets as well. In 2009, SEM will comprise 60% of budgets and is expected to drop slightly to 57.5% of all 2014 interactice marketing budgets (losing points due to growth in social & mobile spending).

Projected US SEM Spending Share of Budget

So, SEM is still poised to remain the leading form of interactice marketing through 2014.

Now for the bad news, which is just down right ugly…

In another report released by [x+1], “Search Engine Marketing in 2009″, 75% of US Senior-Level SEM Executives feel that their SEM will underperform or just meet their expectations. Additionally, 38% of those executives feel that SEM will greatly underperform their expectations. These executives completely outweigh the 25% of executives that felt SEM in 2009 will exceed their expectations.

These numbers show a complete lack of confidence in the ROI in search spending in 2009 from our own executives. Now, with search spending slated to overly double in the next 5-years this is something that needs to change. It may be time for a shake down of your staff or to rethink your SEM strategies to boost executive confidence.

Let me know how you think your campaigns are performing by taking this quick poll. I would really like to see how it compares to the other report. Thanks!

How do you feel your SEM campaigns are performing in 2009?

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