Online advertisers are embracing new marketing platforms and showing an increasing willingness to pay more for targeted reach through behavioral targeting and local search, and to expand marketing channels through video and mobile search, according to the data findings of the 2008 State of the Market survey of advertisers and agencies by the Search Engine Marketing Professional Organization (SEMPO), www.sempo.org.

Social media also continues to build market share as more than 40% of advertiser respondents report they are using in-house marketers to actively promote their brand on social media. Of respondents using social media, Facebook is the leader: more than four out of five advertisers are using Facebook to promote their brand.

SEMPO previously reported that survey findings project 2009 SEM spending to rise to $14.7 billion, with long term spending to reach $26.1 billion in 2013. SEMPO’s detailed online survey by Radar Research was completed by 890 search engine advertisers and SEM agencies and administered via IntelliSurvey, Inc. The executive summary is available to the public online at www.sempo.org.

Here are key survey findings on trends:

Behavioral Targeting: Respondents are overwhelmingly interested in behavioral targeting opportunities: 75% say they would pay more for clicks targeted to in-market consumers. There is also significant interest in demographic targeting such as age and gender. Advertisers, on average, would pay 10 percent more for demographic targeting and daypart targeting, and 13 percent more for behavioral search targeting. Two in five advertisers said they are not currently targeting or retargeting searchers but plan to in the next 12 months.

Local Search: Almost a third of respondents have tried locally targeted search ads and think "it works great.” About a third (34%) had tried locally targeted search and thought "it works okay." More than three out of five marketers (62%) are willing to pay a premium of 1% -5% for local targeting, up from two in five advertisers last year. Beyond that, one in five claim they’re willing to pay between 6%-10% premiums, dropping from one-third in 2007.

Google and Yahoo Dominate Local Search: Google AdWords Local Targeting has solidified its lead as the most popular local search advertising program, used by 80% of advertiser respondents. Some 56% of advertisers reported using Yahoo! Search’s Local Match paid placement program.

Video Search: Some 54% of respondents said they would be interested in contextually targeted advertising attached to video search results. Two in five advertiser respondents claim they want to pay the same for video search as they’re currently paying for traditional search. Among advertisers who report the willingness to pay a premium for video, most prefer to pay 20% or less as a premium.

Mobile Search: Respondents are also warming up to mobile: some 48% said they would be interested in contextually targeted advertising delivered to mobile search users. Almost two in five advertiser respondents claim they want to pay the same for mobile search as they’re currently paying for traditional search. Among advertisers who report the willingness to pay a premium for mobile search, they show an unwillingness to pay more than 30% premium.

Social Media: Among advertisers doing social media marketing, more than four out of five are using Facebook to promote their brand. Digg is the second most popular social media site, with more than two-thirds of advertisers using it. Del.icio.us, StumbleUpon, Reddit and Technorati round out the most popular sites to promote brands.

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