Search engine marketing demonstrating strong ROI

LONDON - Search engine marketing is demonstrating an increasing return on investment for brands, despite the fact that advertisers are cutting spend, according to research published by Efficient Frontier.

The firm's UK Search Engine Performance Report: Q1 2009 showed that advertisers have improved their ROI by 25% over the first three months of the year, even though they have cut spend by 10.5% since the last quarter of 2008.

The report also revealed that paid-for search spend decreased by 6% year on year.

The paid-for search marketing specialist compared data on the first quarter of 2009 with the same period last year, using a sample of advertisers from sectors including financial services, travel, entertainment, retail and telecommunications.

David Karnstedt, Efficient Frontier's president and chief executive, said: "We believe that ROI will continue to be a priority for advertisers as they seek greater efficiencies in keyword marketplaces.

"This trend, coupled with increased search volume, represents a significant opportunity for advertisers to gain market share in key categories and obtain additional, valuable traffic at a discounted price point."

The report was based on an analysis of 7bn impressions and 114m clicks across a number of Efficient Frontier's clients.

Efficient Frontier manages more than $750m of search marketing spend annually.

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