Report: Video, SEM Spending Growing for SMBs

WebVisible put out a terrific report on Q4 2009 trends regarding SMBs and SEM (following up on its Q3 report); it’s got GREAT data. I haven’t had a free moment to digest it until now. 

Here are some verbatim highlights:

  • Average small business search spending surged in Q4 with the average small business advertiser spending $2,149 on search advertising in Q4 2009. This represented an increase of 30% over Q3 2009 and 111% over Q4 2008.
  • Click-through rates (CTR) and cost-per-click (CPC) did not change significantly on the search engines on a quarter over quarter (QoQ) basis. Bing maintained the highest CTR while Google maintained the highest CPC.
  • Conversion rates improved significantly for small business advertisers in Q4 2009 with 35.3% of clicks resulting in website conversion action, versus 32% in Q3 2009 and 26.6% in Q4 2008.
  • Video capability was the fastest growing website feature for small business advertisers over the past year with 19% of advertisers showing video in Q4 2009, versus 5% in Q4 2008.
  • UK small business advertisers spent significantly less than US advertisers in Q4 2009 at an average of $183 per advertiser. UK keyword portfolios were also much smaller at an average of 26 root keywords per advertiser.
  • UK click-through rates (CTR) were significantly lower than in the US in Q4 2009 but varied similarly – Bing had the highest CTR and Yahoo! the lowest.
  • The professional services of law and dentistry made up the largest percentage of advertisers at 9.4% and 6.1% of total advertisers respectively.

Here are a few of the charts that visually illustrate many of the above points (click to enlarge):

The two biggest conclusions here are that SEM spending grew dramatically as did video year-over-year.

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4 Responses to “Report: Video, SEM Spending Growing for SMBs”

  1. Why Invest in Your Online Presence? Because I told you to… » Constant Content Says:

    [...] the last year has rounded out, statistics are now out, and the evidence is clear: if you aren’t spending money on your website and online marketing [...]

  2. Google Launches Small Business Blog | GeekyGemini Says:

    [...] Search Marketing Spend continue to surge for the small business sector, it only makes sense for Google to make information of interest [...]

  3. Peter Kirkham Says:

    Hey Greg,

    Interesting stuff indeed.

    I’m a small business owner in Perth Western Australia.

    Perth is the most isolated capital city in the world, the closest capital to us is Adelaide in South Australia which is 2,712 kilometres away (1,696 miles) which is a long way to drive for a milkshake.

    It constantly surprises me how many small business owners in Perth simply do not know anything about the internet in terms of advertising or lead generation.

    Our isolation is possibly much to blame.

    It’s not all bad however because this situation leaves many doors open for the entreprenuer who has the skills to set up a simple website.

    Now there’s an opening for me.

    Later,
    Peter from Downunder

  4. Greg Sterling Says:

    It’s not just inn Perth where people seem “behind.” And yes you probably have an opportunity but there must be internet usage to convince people that its worthwhile to focus on it.

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