Search Advertising Drives Online Marketing Growth

According to the Internet Advertising Revenue Report released Monday by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers and reported by MediaPost, “the rate of expansion for online ad spending continued to accelerate during the second quarter, soaring 43 percent over the second quarter of 2003, which pegs the second quarter’s online ad volume at $2.37 billion, compares with a growth rate of nearly 40 percent and a volume of $4.6 billion during the first half of 2004…

Sequentially, online ad spending rose 6 percent over the first quarter of 2004, which the IAB and PWC revised downward to $2.23 billion from an earlier estimate of $2.27 billion.”

Search engine marketing accounted for $947 million or 40 percent of all online ad spending, up from only 29 percent a year earlier, making it the most important driver for online marketing growth.

Google AdSense Changes

Google announced new changes to its AdSense sindication program for sponsored search results for web publishers. In addition to making multiple and collapsing ad units available, Google renamed the generic WebSearch and SiteSearch services into the brand-consistent ‘AdSense for search’.

Ads by Goooooogle

Along with these AdSense formatting changes, Google is running a new branding test by expanding the name on the served ad units into ‘Ads by Goooooogle’ ad units. Tara Calishain’s ResearchBuzz blog, with too much free time on her hands, is quick to point that any Google-resembling domain name with more than three Os in the name, i.e.,, does not belong to Talk about risky branding tests 🙂

Fortune 100 Companies Slow on SEO Use

A white paper (PDF, 254 KB) published by OneUpWeb, a search engine marketing company, reveals that the big brand companies of the Fortune 100 list are still slow to tap the power of search engine marketing. Comparing with its findings from 2002, OneUpWeb concludes that while there has been some growth of search engine optimization among the web sites of Fortune 100 companies, it does not correspond to the growth of the search engine marketing industry. Such lack of apparent interest in implementing organic search engine optimization might risk the web brand marketshare of the companies, in addition to the loss of potential sales.

Among the findings of the survey are:

  • 44% of all Fortune 100 companies in 2004 do not use any SEO best practices; 55% of the 2002 list of Fortune 100 companies were not using SEO
  • 47%, 3% more than in 2002, have been utilizing some form of search engine optimization but often have deployed practices that might backfire and are not sustainable
  • Just 9% of the Fortune 100 companies use best search engine optimization practices, effectivelly triple the number of such companies in 2002
  • Finally the survey concludes that the global leaders are at risk of losing marketshare unless implementing rigorous search engine marketing campaigns.