SEM to double in next five years

While traditional advertising lags, a new report from Forrester Research shows that online marketing will continue to expand with search engine marketing (SEM) leading the way.
 
The latest marketing forecast from Forrester finds that online marketing take money away from traditional advertising models as businesses focus on new ways to reach customers.
 
While the report finds that all major areas of online marketing will continue to grow over the next five years, search engine marketing (SEM) is expected to make up a larger percentage of the total industry each year - finally owning 21 percent of the total ad spend by 2014.
 
According to the figures from Forrester, SEM will reach more than $15.3 billion by the end of this year. But by the end of 2014, that number is expected to double to more than $31.5 billion. The largest percentage increase over the five year span will come from social media which is expected to grow from $391 million this year to more than 1.2 billion by 2014.
 
Forrester's Shar VanBoskirk says that one of the most interesting things about the research is that while online spending will continue to increase over the next five years, companies will actually spend less on marketing in total.
 
"With dollars moving out of traditional media toward less expensive and more efficient interactive tools, marketers will actually need less money to accomplish their current advertising goals," she wrote on the company's blog.
 
A recent study from ZenithOptimedia also found that the industry will grow in upcoming years with its report predicting that online marketing will make up 15.1 percent of all marketing budgets by 2011.
 
Found:
http://www.komarketingassociates.com/industry-news/sem-to-double-in-next-five-years$258.htm

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