UK Search Engine Marketing Benchmark Report 2011
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1 Market Data / Supplier Selection / Event Presentations / User Experience Benchmarking / Best Practice / Template Files/ UK Search Engine Marketing Benchmark Report 2011 In association with Guava
2 UK Search Engine Marketing Benchmark Report 2011 Published May 2011 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright Econsultancy.com Ltd 2011 Econsultancy London 4th Floor, The Corner Farringdon Road London EC1M 3LN United Kingdom Telephone: +44 (0) Econsultancy New York 41 East 11th St., 11th Floor New York, NY United States Telephone:
3 Contents 1. Executive Summary and Highlights Introduction from Guava About Guava About Econsultancy Methodology and Sample Methodology Respondent profiles Job roles Annual company turnover Business sector Geography Findings Type of search activity and search services Companies carrying out search and social media marketing Agency focus Are search and social media marketing done in-house or by an agency? Paid search services (supply and demand) SEO services (supply and demand) Content strategy Impact of blended search on content strategy Multilingual search campaigns Multi-territory search campaigns Budgets Percentage of overall budget spent on search marketing Change in search and social media budgets Paid search budget Annual change in paid search budgets Percentage of paid search budget spent on local search Percentage of paid search budget spent on mobile search SEO budget Annual change in SEO budgets Social media marketing budget Annual change in social media budgets Technology and analytics UK Search Engine Marketing Benchmark Report 2011 In association with Guava
4 Bid management technology Criteria for selecting bid management technology Objectives, effectiveness and ROI Primary objectives for paid search Primary objectives for SEO Primary objectives for social media marketing Impact on brand Tracking ROI from paid search Tracking ROI from SEO Tracking ROI from social media marketing Effectiveness of ROI tracking Effectiveness of social media campaigns Annual change in ROI Issues affecting ROI from SEO and paid search Changes in levels of referred traffic Search engines and PPC platforms PPC investment in search engines and other platforms Change in keyword prices Effect of Google Instant Effectiveness of particular search engines Integration of search and display Types of search engine marketing Local search versus social search Social media Social media sites Use of social media in the context of search marketing Barriers to search and social media marketing Barriers to paid search Barriers to SEO Barriers to social media UK Search Engine Marketing Benchmark Report 2011 In association with Guava
5 1. Executive Summary and Highlights This is the fifth annual UK Search Engine Marketing Benchmark Report published by Econsultancy in association with Guava. The research, which covers search engine optimisation (SEO), paid search and social media marketing, is based on a survey of more than 600 advertisers and agencies which was carried out in February and March Overall picture Four years after the first annual SEM benchmarking report by Econsultancy and Guava, the market for search marketing continues to thrive, with more than half of client-side marketers saying they expect budgets for both SEO (59%) and paid search (53%) to increase in the next year. The equivalent figures for the 2010 survey were 60% for SEO and 52% for paid search. The proportion of companies planning increases in social media investment jumped significantly in 2010 (compared to 2009) but has fallen slightly this year. Some 63% of companies say they plan to increase social media budgets in 2011, compared to 65% in 2010 and 48% in Local and mobile search gain momentum Just under a third of companies (30%) carry out local search (up from 27% last year), but a further 21% are planning to do so. Google leads the way for PPC spending, but the majority of companies are also increasing investment in Facebook, LinkedIn, YouTube and Twitter Respondents were asked whether they had increased their pay-per-click (PPC) investment in a range of search engines and web properties over the past year. Two thirds of advertisers (67%) have increased their budget for Google, compared to only 12% who have decreased their investment in this search engine. There is evidence that companies are increasingly integrating search and display 46% of companies say there is some integration of paid search and display advertising, while 9% say there is full integration. Some 45% say there is no integration. Just over half of advertisers (53%) say they re-target search prospects with display ads. Just under two thirds (64%) of supply-side respondents say their clients do this. Companies are more likely to outsource search marketing than social media activity Two thirds of companies surveyed (67%) carry out social media marketing exclusively inhouse, compared to 42% for paid search and 52% for SEO. SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 4
6 2. Introduction from Guava We were delighted by the response to the previous reports and feel we are continuing to achieve our aim of providing the most comprehensive and useful piece of year on year Search Engine Marketing research in the UK. We are pleased to be Econsultancy s research partner on this project for the fifth year running. Companies are continuing to increase the proportion of their marketing investment on Search, with the clients surveyed reporting a spend of 22% of their total marketing budget in this area. Clients are also looking to continue increasing the proportion of budgets assigned to Search and Social Media in particular. Measuring success and proving the business case were identified as the two biggest barriers to clients in achieving their desired successes in social media, recorded as 46% and 43% respectively, in comparison to lack of budget at 29%. Measuring campaigns is evidently still key and something that we are very keen on. Over the past year Guava have built up our Analytics consultancy offering and our experienced team has delivered some great technical projects. Engagement is still regarded as the main objective for Social Media, rather than driving traffic. Clients are tending to keep their social media activity in-house and although they are looking to increase spend, only 8% of overall marketing budgets are being assigned to this. Many of Guava s clients are now running Facebook paid advertising campaigns alongside or in addition to their PPC campaigns and investment in Facebook advertising will continue to increase this year. It is good see that more than half (55%) of companies are carrying out at least some integration of paid search and display advertising, though there are still a significant number of companies who aren t taking a joined-up approach. We are now pleased to be managing integrated Display and Search campaigns for our clients. Overall the picture is extremely positive for Search Marketing. Whilst areas such as Facebook and the latest developments in Display may grab the headlines, in these difficult times clients still trust and depend on search. We hope that you find the results presented an interesting insight into the Search Engine Marketing landscape in the UK and that they are useful for you and your company in the coming months. Lucy Cokes, Chief Operations Officer Guava SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 5
7 2.1. About Guava The internet is constantly evolving. To keep up and stand out, you need energy, expertise and know-how. Let us introduce ourselves. We are Guava. For 12 years we ve kept clients ahead of the game with savvy digital marketing campaigns designed to get them noticed. We re constantly responding to online developments and building our knowledge, technology and systems ahead of the curve so we deliver the very best results. With a diverse client base including RBS Insurance, Argos and Accor Hotels we deliver a broad spectrum of services, from Search Marketing (SEO & Paid Search), Web Development and Analytics, through to Display Advertising, Facebook Marketing and Social Media. As part of the NetBooster Group, our global network of 440 employees means we re able to respond to your needs regardless of scale, budget or location. Come and talk to us. Your online revolution starts here. For more information about the search engine marketing services provided by Guava, please contact Martin Dinham on or uk@guava.com 2.2. About Econsultancy Econsultancy is a digital publishing and training group used by more than 200,000 internet professionals every month. The company publishes practical and time-saving research to help marketers make better decisions about the digital environment, build business cases, find the best suppliers, look smart in meetings and accelerate their careers. Econsultancy has offices in New York and London, and hosts more than 100 events every year in the US and UK. Many of the world s most famous brands use Econsultancy to educate and train their staff. Some of Econsultancy s members include: Google, Yahoo, Dell, BBC, BT, Shell, Vodafone, Virgin Atlantic, Barclays, Deloitte, T-Mobile and Estée Lauder. Join Econsultancy today to learn what s happening in digital marketing and what works. Call us to find out more on +44 (0) (London) or (New York). You can also contact us online. SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 6
8 3. Methodology and Sample 3.1. Methodology This is the fifth annual UK Search Engine Marketing Benchmark Report published by Econsultancy, in association with Guava. Many of the questions in the survey have been repeated over this time period, enabling us to compare data and look at trends. There were more than 650 respondents to our 2011 research request, which took the form of an online survey 1 in February and March Respondents included both client-side (in-house) marketers (i.e. advertisers) and supply-side respondents (including agencies and consultants). Information about the survey, including the link, was ed to Econsultancy s user base and promoted on Twitter. The incentive for taking part was access to a complimentary copy of this report just before its publication on the Econsultancy website. If you have any questions about the research, please Econsultancy s Research Director, Linus Gregoriadis (Linus@econsultancy.com) Respondent profiles Survey respondents included 352 client-side marketers (company respondents) and 251 supplyside respondents from agencies and consultancies. For the purposes of this report, we have carried out separate analysis for both these groups and the distinction is abbreviated to companies (including publishers, not-for-profit organisations and respondents working in Government) and agencies (including vendors) Job roles Over half of companies (54%) are working for a company or organisation that uses search engine marketing. Just over a third (38%) work for agencies or consultants that offer search engine marketing services. Figure 1: Which of the following most accurately describes your job role? Respondents: Econsultancy uses Clicktools for its online surveys SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 7
9 Annual company turnover Figure 2 shows the annual company revenue of the companies (client-side) surveyed. Some 70% of companies have annual company revenue of up to 50 million. Just under a quarter (24%) report revenue of under 1 million, while an additional 24% work for companies with annual revenue of between 1 and 10 million. At the other end of the scale, 22% work for companies with revenue of at least 150 million, including 10% who work for companies with revenues of more than 1 billion. Companies Figure 2: What is your annual company turnover? Respondents: 258 SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 8
10 Business sector Figure 3 shows the range of business sectors that responding companies work for. The most popular business sectors are retail (17%), financial services (9%), travel (9%), and consultancy or marketing services (8%). Some 21% of companies cited other, and this includes respondents who work in IT, education, and recruitment. Companies Figure 3: In which business sector is your organisation? Respondents: 257 SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 9
11 Geography The vast majority of respondents taking part in this survey (95%) are UK-based. A minority of respondents are based in mainland Europe (2%) or North America (2%). Companies Figure 4: In which country / region are you personally based? Respondents: 261 SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 10
12 4. Findings 4.1. Type of search activity and search services Companies carrying out search and social media marketing The chart below shows the types of marketing carried out by companies, and the trends over a five-year period. In this year s survey, search engine optimisation comes out on top, with 91% of companies using this type of marketing. Three-quarters of respondents (75%) employ paid search, while 77% are engaging in social media marketing. After a decline from 88% in 2007 and 2008, the number of companies carrying out pay-per-click marketing appears to have reached a plateau. Companies Figure 5: Which of the following types of marketing is your organisation or agency involved in? Note: There is no trend data available prior to 2010 for social media marketing. Respondents: 624 SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 11
13 4.2. Budgets Change in search and social media budgets The chart below compares spending intent for social media marketing, SEO and paid search. It is encouraging to see that the majority of companies are planning increased investment in all three channels over the next 12 months. Almost two-thirds (63%) of companies say they expect their budgets for social media marketing to increase, compared to an equivalent figure of 59% for SEO and 53% for paid search. Companies Figure 6: Do you expect your budgets to increase or decrease in the next 12 months? Respondents: 294 SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 12
14 4.3. Objectives, effectiveness and ROI Primary objectives for paid search Companies were asked about their primary objectives from paid search. Just under half of companies (49%) report driving traffic as a main objective. The proportion of companies that reported direct online sales to be a primary objective has slightly fallen to 45%, down from 53% in Just over a quarter of respondents (26%) said branding was a primary objective, slightly lower compared to last year s survey (30%). Companies Figure 7: What are your primary objectives from paid search? Respondents 2011: 278 Respondents 2010: 268 SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 13
15 4.4. Barriers to search and social media marketing Barriers to paid search Lack of budget (40%) is the biggest factor preventing companies from being as successful at paid search as they would like. Just over a third of respondents (35%) cite the lack of internal resource as an obstacle. A third (34%) say the high price of keywords is holding them back. Companies Figure 8: Which of the following are the biggest problems preventing you from being as successful at paid search as you would like? Note: Respondents could select up to three options. Respondents: 246 SAMPLE UK Search Engine Marketing Benchmark Report 2011 Page 14
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