Search engine marketing generated $5.75 bln in 2005

Advertisers in the US and Canada spent $5.75 bln on search engine marketing in 2005, a 44% increase over 2004 spending, according to Search Engine Marketing Professional Organization. SEM spending in North America will reach $11 bln in 2010. The bulk of the SEM spending was spent in 2005 on paid placement, accounting for 83% or $4.7 bln. While 80% of advertisers report they engage in organic search engine optimization (SEO), organic SEO accounted for approximately 11% of overall spending; paid inclusion accounted for just 4% of overall spending; and SEM technologies, including leasing, agency solutions and in-house development, accounted for less than 2% of overall spending.