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Consumers worldwide are logging on to Google in their billions, but while some sectors have been quick to cash in on the search revolution, others have been more reluctant.

Automotive, financial services and travel - which led the way in online advertising - are also widely regarded as search pioneers. Sales in these sectors are particularly reliant on consumers being able to compare information from a range of suppliers before purchase, and search has provided an ideal channel for this.

Now, a growing number of bricks-and-mortar businesses are seeing the value in these 'futuristic telephone directories', according to Julian Smith, online advertising analyst at JupiterResearch. 'The early adopters of search were online businesses that wanted to direct traffic to their websites, but now established brands are using search to drive offline transactions, and that is where advertiser growth is coming from,' he says.

As the rising penetration of broadband drives more consumers online, so search's appeal has broadened, and it is now widely used by businesses ranging from charities to supermarkets.

Traditional benefits

FMCG remains one sector that has yet to have latched onto the benefits of search. It has been reluctant to embrace digital marketing, preferring, with a few exceptions, to rely on more traditional channels. But as search establishes itself as more than a directresponse medium, its brand-building potential means there is no reason for FMCGs not to experiment with it, according to Smith.

'There are times during the day when the internet has a bigger audience than TV, and while search works well for brands reliant on online transactions, its importance as an engagement channel is also growing,' he explains.

Search engines are stepping up their focus on the FMCG market and believe it is inevitable that the sector will come on-board. As one search engine executive says: 'The consumer dictates what they want from search.'

Innovations including the roll-out of local and mobile search will enable search engines to broaden their reach yet further, according to Stephen Taylor, regional vice-president and managing director of Yahoo! 'Local search will allow advertisers to market to customers within a defined radius of their location, making it far simpler for those searching to obtain the exact information they need to buy products or services locally,' he says.

One area where local search is expected to be particularly beneficial is the SME market. At present, search campaigns are predominantly the domain of national companies because of the attendant costs. Being able to target consumers by location will open up the medium to local shops, amenities and tradesmen; Google, Yahoo! and Ask are already trialling localised services for SMEs.

Customer acquisition

Gaming is one industry that has made search its primary online customer acquisition channel. Laws surrounding the advertising of gaming services are being updated, but so far the sector has successfully capitalised on the medium. Tony Macklin, vice-president of EU product management for Ask Europe, says searches for lottery and gaming services are among the most popular conducted. 'Search means you can reach targeted customer groups. It has been a massive driver for lottery and gaming brands,' he adds.

In the future, there will be very few sectors that search engines won't cater for - as long as they are within the law. Though each engine abides by its own set of guidelines based on current legislation and its own ethical considerations, as search becomes a key element of the marketing mix, they are now in the public eye and need to adopt ever-more rigorous standards.

Meanwhile, search will continue to develop in innovative ways; although engines already break down the results they return by sector, observers expect developments such as the roll-out of localised and contextual search to increase their sophistication.

This may extend to category- and sector-specific 'search channels' such as cars or travel - though it seems unlikely in the near future. Whatever happens, technological advancements and the ubiquitous nature of search means the engine of the future will be markedly different from today's phone book-style operation.

CASE STUDY - SHELTER

Housing charity Shelter uses search marketing as a key part of its donor acquisition programme. Having appointed Harvest Digital as its digital agency two years ago, the charity has focused on paid search. This is because it is reliant on a high level of responses, and it now has a paid presence on most of the major search engines, excluding Miva.

Mike Teasdale, founding partner of Harvest Digital, says search has helped Shelter learn more about its donors. 'The aim was to simplify the journey to the "give now" button,' he adds. 'We relied on simple messages, but they have worked well. Digital marketing is the most cost-effective channel for Shelter's donor-acquisition programme.'