Businesses 'using search marketing agencies more'

15th September 2008

Companies are increasingly employing the services of organisations specialising in search engine optimisation (SEO) and related activities.

This is according to a Jefferies & Company report that revises the overall outlook for the online ad sector slightly downwards but lays out a positive future for the search industry.

It said that it expects spending on search to grow by 26 per cent this year, while expenditure in 2009 will rise by 23 per cent as marketers look to media other than display ads.

This follows a recent internet ad forecast revision by JPMorgan's Imran Khan, who also said that marketers are increasingly looking to performance-focused channels like search as the economy slows.

Jefferies & Company's report stated: "SEO companies seem to be growing in popularity as marketers and agencies use them as a way to increase the efficiency and profitability of their sites at relatively attractive costs, while lowering the spend on other channels."