Is The Growth Of The Indian SEM Industry Slowing Down?
The search-engine-marketing (SEM) industry in India is likely to increase to $225 million by 2009-10, driven by the growing internet base and the expanding use of internet marketing techniques, says a report by the Internet and Mobile Association of India. The total spend on search marketing stood at US$ 112.5 million in 2007-08, and is expected to touch US$ 175 million in 2008-09. This increase is backed by an estimated 75% of the over 40-million internet users who now use search services compared to 34% in 2004.
Take a closer look at the numbers, and you see that the growth has actually slowed down from 55% (from 2007-08 to 2008-09) to 28.5% (from 2008-09 to 2009-2010). Is this because of the slowdown in the economy?
The UK market is showing a similar trend, which however seems to be indicative of a market that is maturing. E-consultancy’s 2008 search engine marketing buyer’s guide, released this week, predicts that SEM spend in the U.K. will rise by 24% in 2008, down from 58% year on year growth in 2007 and 65% growth in 2006. Total spend is therefore predicted to reach around £2.75 billion ($4.9 billion) this year, up from a £2.2 billion ($3.9 billion) spend in 2007, which hints towards maturity.
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