According to a report by Covario, search spend “surged” during the 2008’s fourth quarter with a 43% YOY increase from 2007. The retail sector was one of the big winners during the final quarter of 2008, due in large part to a 9% -12% increase in search spending.
We are facing some tough economic times even with another $9 billion stimulus package. However, large retail is still investing in search because of it’s measurable return on marketing investment. Retail Search spends are measured and adjusted primarily based on purchase behavior. And because search can be very cost-effective and provides tremendous accountability, it has become an indespensible marketing channel for many.
While cost cutting is currently a primary focus, many marketers are shifting budget dollars to the Search channel as highlighted in my last post: More Web Development and Display Ad Budgets Moving to Search in 2009. I am cautiously optimistic about paid search spend in 2009.
Source: Covario, Efficient Frontier
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