Small Business Study: Spending 91% More on Search Marketing

The advertising paradigm has felt a significant shift. Print media, radio, television – all these traditional forms of advertising are taking notice of the new king of advertising results: online search marketing.

In fact, according to a study published by one of the leading online advertising companies,, small businesses spent 91% more on PPC advertising in the third quarter of 2009 than the same period in 2008. That is nearly double the spending in one year!

Online Marketing 101

Small businesses particularly benefit from search marketing and advertising, but what is search marketing? Typically, search marketing involves advertising through the search engines or directories, with an advertisement appearing at the top of search results when a certain keyword or phrase is used.

When these ads appear, a user can simply ‘click’ on a link or ‘call’ the provided number to get more information. Hence, with pay per call or pay per click advertising, this generates a highly concentrated set of leads for the small business, and the best part is that the business only pays for the advertising when a click or call occurs.

Why Search Marketing Continues to Grow in Popularity

Why is search marketing continuing its rapid growth in popularity? PPC works and is the most cost-effective form of advertising available today. Hundreds of millions of web searchers are performing searches every day around the world, mostly using the top search engine, Google. Subsequently, over 60% of small businesses chose Google as their main search marketing agent.

What did small business spend on search marketing in Q3 2009? According to, the average spending for search marketing was around $1,600. However, the top tier of small business search marketing was between $2,000 and $3,000 for the quarter. That translates into big gains for online advertising revenues, and it is expected to continue to increase at the pace we’ve seen in the last year.

Online search marketing is quickly becoming the model for results-based advertising. If you operate a small business, consider the benefits of an online search marketing account. The cost per lead can be much more cost effective than traditional advertising strategies, and you will likely be pleased with the results on your bottom line.

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