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Houston Search Engine Marketing

Retailers Reveal Marketing Budget Guidelines

SEO Services Houston

The latest Internet Retailer Survey shows the following summary for percentage of sales allocated to marketing. As you can see, most retailers spend between 6 and 10 percent of sales on marketing. While the data refers only to retailers, we believe it generalizes across industries as a fairly good benchmark guide.

  • 4.1% of all companies spend over 25% of sales to marketing
  • 7.7% spend less than 1%
  • 18% spend between 2% and 3%
  • 19.9% spend between 4% and 5%
  • 28.1% spend between 6% and 10%
  • 21.9% spend between 11% and 25%

Search Wins Hearts and Minds

JupiterResearch reports continued growth in the size and complexity of search campaigns with nearly 24 percent of search marketers spending over $500,000 on SEM campaigns in 2005 versus 12 percent in 2004. This year, 66 percent of marketers plan to increase search spending.

The same study reported marketers are spending larger budgets and generating more revenues. The share of search marketers with annual revenues of $15 million or more has risen from 25 percent in 2005 to 37 percent in 2006.

What does this tell you about search marketing? We believe it means that search has become first and foremost in the hearts and minds of marketers and with good reason : every action can be tracked at very granular levels.

Marketers are shifting money from other channels to search because it is incredibly effective for both conversions and return on investment. Savvy marketers will use both organic SEO and paid search advertising to achieve superior branding and meet direct response goals.

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