Almost Half of Search Marketers Outsource to Agencies, Finds Jupiter Research
Thursday, 10 August 2006
JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, has found that while Search Engine Marketing (SEM) agencies direct the bulk of paid search spending, marketers' expectations of their agencies is high while loyalty is low.
In a new vendor evaluation report, "Search Engine Marketing Agency Constellation," JupiterResearch evaluated 15 SEM and Search Engine Optimization (SEO) agencies on market suitability, overall business value and agency size. Among the detailed findings, JupiterResearch found that an agency's technology is important, but it is client service that is becoming increasingly critical to marketers.
"An increasing number of marketers are diversifying and intensifying their use of search agencies. However, only 21 percent are completely satisfied and have no interest in switching agencies," said Sapna Satagopan, research associate and lead author of the report. "Search agencies must begin to differentiate themselves and build loyalty through higher levels of client service."
Some issues addressed in the report include criteria for marketers looking to evaluate SEM and SEO agencies, payment models, and recommendations for small, medium and large agencies.
Some of the agencies that emerged as leaders include 24/7 Real Media, iProspect and Did-It in the SEM space, and IMPAQT, iProspect and Reprise Media in SEO.
"Forty five percent of search marketers are using agencies for one or more of their campaigns, and marketers are increasing their overall spending on search," said Zia Daniell Wigder, vice president and research director at JupiterResearch. "The keys to their success will be in engaging an agency that combines strong tracking tools with extraordinary service."