Welcome!

News Feed Item

Search Budgets Increase as Focus Turns to Conversion Rate Optimisation

LEEDS, UNITED KINGDOM -- (Marketwired) -- 05/16/14 -- Companies are continuing to increase investment in search marketing while also increasing efforts to improve website performance, according to research published today.

The eighth annual UK Search Engine Marketing Benchmark Report 2014, published by Econsultancy in association with digital marketing agency Latitude, found that 58% of companies are increasing their paid search budgets this year, up from 55% in 2013. Similarly, more than half (55%) of companies said they are increasing their budgets for search engine optimisation (SEO) over the next year, up from 51% a year ago.

Meanwhile, the research also found that 60% of companies are increasing their budgets for conversion rate optimisation, reflecting a desire to ensure that budget spent on acquiring traffic is not wasted by poorly converting websites.

Econsultancy Research Director, Linus Gregoriadis said: "Companies are becoming increasingly savvy about the folly of spending more on search marketing without simultaneously investing in conversion rate optimisation. Mobile optimisation is a particular area of focus with many companies eager to make the most of increased traffic coming via smartphones and tablets."

"No prizes for guessing that companies continue to see the value in search engine marketing in 2014" commented Latitude's Managing Director, Richard Gregory. "What is different this year however is the encouraging number of companies realising the value of Conversion Rate Optimisation, which speaks volumes in regards to companies aiming to ensure that most is being made out of traffic driven to their websites. That said, it's surprising to see the investment in analytics is falling behind spend on other marketing channels such as search and display. This could, at least in part, explain why companies struggle to measure impact on their marketing investment."

The benchmark report is focused on SEO and paid search marketing, but also incorporates questions about social marketing, display, analytics and conversion rate optimisation because of the increasing overlap between search and these disciplines.

Companies are spending more on search marketing even though it is becoming increasingly challenging to measure the returns, partly due to Google's withholding of valuable keyword data. Only 36% of companies stated that they have 'a definite tracking solution to measure consistently across different digital channels'.

The study also found that companies are increasingly struggling to track the return on investment from paid search and SEO effectively. Only 44% of companies say they can measure paid search ROI effectively, down from 53% in 2013.

This trend is even more evident for SEO, with only 31% of companies saying they can measure organic search ROI effectively, down from 45% a year ago. 'Keyword data not provided' is the second greatest obstacle to SEO success, after lack of internal resource.

While some organisations are dedicating more resources towards improving their analytics capabilities, only 39% of companies are planning on investing in analytics which suggests that spending on analytics is failing to keep pace with investment in marketing channels such as search, social and display.

The research, which was carried out in the spring of 2014, is based on a survey of more than 700 companies and agencies, making this the most authoritative report on the UK search engine marketplace.

Other key findings

--  More than 55% of companies surveyed for the report are spending at least
    GBP 50,000 a year on paid search, up from 51% last year. The proportion
    of companies spending less than GBP 25,000 has dropped 6% from last
    year, from 40% to 36%.

--  Paid search now constitutes 26% of total marketing budget, compared to
    24% in 2013. SEO has dropped from 18% to 14%. Meanwhile, social accounts
    for 9% of budget while display accounts for 10%.

--  More than half (54%) of organisations say that there is flexibility to
    shift budgets between channels based on ROI, though a fifth (20%) say
    that budgets are rigidly split by channel. Around a quarter (26%) say
    their digital marketing budget is not split out by channels.

--  A quarter of companies (26%) say that digital marketing budget is bolted
    on their above-the-line media spend as fixed budget. Just under a third
    (31%) say that their digital budget is bolted on as flexible budget,
    while 43% say that above-the-line and digital marketing budgets are
    separate.

--  67% of client-side respondents are spending over GBP 10k in display
    advertising and 9% are spending GBP 1million plus.

--  60% of the agencies surveyed in the report say that SEO client contracts
    are at least one year in length. This decreases to 52% for paid search,
    49% for display advertising and 47% for social media marketing.

--  Nearly two thirds of companies (64%) are being hampered in their efforts
    to measure return on investment by not having a definitive tracking
    solution.

--  Mobile search now accounts for 9% of paid search budget, according to
    client-side respondents. But according to agency respondents, the
    average figure for their clients is 15%.

--  Survey respondents are more likely to be positive rather than negative
    about the impact of Google's Enhanced Campaigns, although many are
    unhappy that there is now forced inclusion of mobile campaigns which has
    decreased effectiveness. Agency respondents are most positive about
    Enhanced Campaigns, with 23% of supply-side respondents saying the
    impact has been positive compared to 9% who say it has been negative.

--  74% of companies are paying to advertise on Facebook as part of their
    marketing activity. Just over a third are paying to advertise on Twitter
    (37%) and LinkedIn (also 37%).

--   60% of companies say their SEO and content strategy are integrated.


Get this report:

The full report is available on the Econsultancy website here:https://econsultancy.com/reports/uk-search-engine-marketing-benchmark-report

The briefing is available to Econsultancy subscribers, or on a pay-per-view basis.

For more information about this report, contact:
Linus Gregoriadis, Research Director, Econsultancy
linus.gregoriadis AT econsultancy.com
+44 (0) 207 269 1450

About Econsultancy

Econsultancy's mission is to help its customers achieve excellence in digital business, marketing and ecommerce through research, training and events.

Founded in 1999, Econsultancy has over 250,000 subscribers, is used by more than 500,000 professionals every month, and has offices in New York, London and Singapore.

Econsultancy subscribers get access to research, market data, best practice guides, case studies and elearning - all focused on helping individuals and enterprises get better at digital.

The subscription is supported by digital transformation services including digital capability programs, training courses, skills assessments and audits. We train and develop thousands of professionals each year as well as running events and networking that bring the Econsultancy community together around the world.

Subscribe to Econsultancy today to accelerate your journey to digital excellence.

Call us to find out more:

New York: +1 212 971 0630
London: +44 207 269 1450
Singapore: +65 6809 2088

About Latitude

Latitude Digital Marketing has pioneered the use of digital channels in the UK and internationally for 13 years. Areas of expertise include search engine optimisation (SEO), pay- per-click (PPC), social media marketing, online display advertising, affiliate marketing and conversion analytics. The business works across a range of sectors including retail, gaming, leisure and travel with clients such as Fitness First, Haven Holidays and Snow+Rock.

Contacts:
Press Contact:
Salla Venalainen
Marketing Manager
0207 952 8008
[email protected]
www.latitudegroup.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices t...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to clos...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...