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625 million keyword searches are completed on the web each day.
Paid Search, or Pay-Per-Click, will eclipse all other forms of online
advertising in the coming year, according to investment banking and
research firm S.G. Cowen & Co., which estimated that U.S. advertisers
spent $6.1 billion in paid search in 2005, and $6.4 billion in all
other forms of online ads, such as branded/display ads and classified
In 2006, Paid Search accounted for over half of all online spending
and will continue to increase its lead every year. By 2010, companies
will spend $17.3 billion in Paid Search and $12.4 billion on other
forms of online ad categories, according to S.G. Cowen.
With the rapid rise of internet usage and broadband adoption, Search
has become a valuable research tools for consumers. Behind email,
search is the second most popular online activity today, and it is
the number one way users find new products, services and information.
Given its direct, opt-in and self-targeting nature, (people are seeking
out products and services as opposed to watching a TV commercial),
it’s no surprise search has become the hottest marketing medium
available to advertisers. Search Marketing as an industry, has grown
almost 700% in the last four years, with the percentage of total online
spending allocated for Search increasing from 4% in 2001 to 49% in
Paid Search offers advertisers a low-cost, direct-response medium
which has been proven to drive conversions at five times the rate
of other media. In addition, Search has also shown the ability to
provide brand-lift. It it now apparent that Paid Search simply MUST
be a key component of any marketing strategy.
Advantages of Paid Search
• Huge Potential – 625+ million searches every day (7,500
per second). Search is the #1 way users find products and services
• Always On – Your marketing message and website are available
24 hours a day, 7 days a week, 365 days a year.
• Opt-in Marketing – Search does not interrupt consumer
activity; those who use search are actively requesting relevant information.
• Highly Targeted – Visitors are “self-qualified”
based on keywords used in their queries; search can also be geo-targeted.
• Warmest Leads – Visitors generated from search listings
are 5 times more likely
to make a purchase or request more information.
• Measurable – Internet media is easy to track, allowing
for constant campaign monitoring and adjustment for best possible
• Cost Effective – The average cost per acquiring a customer
via Search Engine Marketing is typically 75% lower than other direct