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ROI Marketing Measurement, Focus of Search Report  |
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Synopsis:
A new search engine study, reveals that the number of search marketers now measuring ROI has grown to 88% since 2005. It also revealed that search marketer performance evaluations based on campaign metrics has risen to 86% since 2005 as well. |
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The Article
Boston, Massachusetts - (Website Hosting Directory) - August 27, 2007 - A new search engine study, reveals that the number of search marketers now measuring ROI has grown to 88% since 2005. It also revealed that search marketer performance evaluations based on campaign metrics has risen to 86% since 2005 as well.
The study, conducted by JupiterResearch and sponsored by search engine marketing firm, iProspect, was commissioned to gain a better understanding of search marketer behavior in regard to results measurement and personal performance evaluation. The survey targeted marketers based upon their familiarity with their company's search marketing efforts, and screened participants for involvement with marketing their company's products. Participation was limited to search marketers who both outsource the management of their search engine optimization campaigns to an outside firm, as well as engage in paid search advertising.
Fielded in March of 2007 by JupiterResearch, a total of 794 qualified search marketers completed the survey. The same questions used in this survey were also posed in previous iProspect search marketer surveys that resulted in the iProspect Outsourced SEO Metrics and ROI Study (August 2005) and the iProspect Search Marketer Performance Study (August 2005). Trending information included in this study is derived from the earlier papers.
Amongst its key findings, the study revealed that 88% of search marketers measure the ROI of their campaigns. This figure represents a 9% increase since 2005 when 79% reported they were able to measure their ROI. This figure underscores the dwindling ranks of marketers that fall short in this area.
Robert Murray, President of iProspect remarked, ''Going into this survey, we expected to see a significant increase in the percentage of search marketers now measuring the ROI of their campaigns. Especially given the increased level of search marketer sophistication that has evolved over the past two years. However, we were surprised that it only bumped up 9%. While the increase was less than expected, it still shows that more and more marketers are motivated to measure the ROI of their search programs. And given the substantial investment that search marketing requires, I can't imagine not measuring ROI. It's become mandatory as senior management is increasingly demanding that the cost be justified.''
The study also revealed some interesting findings in regard to search marketer performance evaluation trends. Specifically, search marketer job performance evaluations that are based upon search metrics have jumped to 86%. In 2005, 19% of search marketers did not have their performance evaluation tied to search metrics. Today that number has shrunk to 14%, representing a 5% increase in marketer performance evaluations based upon search metrics.
Mr. Murray continued, ''Back in 2005 we were surprised by the percentage of search marketers that did not have their performance tied to search metrics. And again -- as was the case with the ROI measurement finding - we expected to see a major bump in this area. But apparently this trend is moving a bit slower than one would think, especially in light of the increased pressures search marketers are under to produce results. However, despite the small increase, keep the total in mind. Today 86% of search marketers have their job performance tied to some measure of search metrics.''
Interestingly, the study also found an increase in search marketer job performance evaluations tied to true business results such as total sales, return on advertising spend (ROAS), and ROI. Specifically, the percentage of search marketer evaluations tied to total sales increased by 16%, those evaluations based on ROAS increased 13%, while those based on ROI rose 6%.
Mr. Murray added, ''With more search marketers tracking and measuring the performance of their campaigns, they have the information they need to tie their efforts to actual business results. Given that, increases in this area should continue. Today, 50% of search marketers have their performance based on total sales, 49% percent are based on ROI, while 42% are based on ROAS. Those numbers tell an interesting and encouraging story. Namely, they speak to the increased sense of control and ownership felt by search marketers, and the increased sophistication of senior executives as it pertains to search. What's more, what search marketer wouldn't rather have their performance evaluation based upon what their efforts actually netted - such as an additional $3 million in sales or 20% increase in ROAS -- than an additional 20,000 visitors a month.''
With U.S. offices in Watertown, Massachusetts and San Francisco, California, as well as offices across the globe, iProspect can be contacted at 1-800-522-1152.
JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies
profit from the impact of the Internet and emerging consumer technologies on their business. JupiterResearch provides:
- Consumer-facing companies with online advertising,
marketing and customer service strategies to understand,
attract, convert and retain customers
- Advises online businesses to help them make critical decisions
about technology selection, spending, staffing and Web site
effectiveness
- Guides technology vendors and service providers on market
opportunity, positioning, product definition and pricing
JupiterResearch helps businesses define revenue opportunities,
understand market trends, react to industry-specific dynamics
and anticipate customers' demands, through a broad product offering in over 30 coverage areas, including:
- Analyst access
- Actionable research reports
- Proprietary survey data
- Reliable market forecasts
To learn more about JupiterResearch, please visit: www.jupiterresearch.com.
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