Niki Scevak, a Jupiter Research analyst, discussed the search engine industry with members of the Search Engine Marketing Professional Organization (SEMPO). Scevak examined industry maturity, paid inclusion, and industry structure at SEMPO’s recent informational meeting at Jupitermedia’s Search Engine Strategies 2004 Conference and Expo.

Niki Scevak, a Jupiter Research analyst, discussed the search engine industry with members of the Search Engine Marketing Professional Organization (SEMPO). Scevak examined industry maturity, paid inclusion, and industry structure at SEMPO’s recent informational meeting at Jupitermedia’s Search Engine Strategies 2004 Conference and Expo.

Barbara C. Coll, CEO of WebMama.com Inc. and President of SEMPO, said, “According to a member survey, one of the key things that SEMPO members want is a say in the direction of the industry. Our meeting earlier this month is just one of the ways that SEMPO is providing this say by facilitating communication between our members, our sponsors, and industry analysts.”

Scevak addressed three questions:
·    Is the search industry reaching maturity?
·    How should marketers use paid inclusion?
·    How will the industry structure change over time?

According to the Jupiter Research analyst, online commerce will govern paid search growth. For example, Jupiter Research models show online shopping and online travel will grow from $96 billion in 2003 to $197 billion in 2008. At the same time, another Jupiter Research model shows paid search, as a percentage of online shopping and travel, will grow from 1.7% to 2.2%.

Scevak also said the paid inclusion credibility crisis is temporary. “Let me say that paid inclusion is receiving too much bad publicity,” he observed, adding, “The idea of ‘integrity through obscurity’ that has governed the industry’s history is not acceptable for the next five years. There needs to be some sort of structured relationship between SEO and SEM firms and the search index, and that is what paid inclusion has the potential to provide. It’s time for greater transparency and structure.”

Finally, the Jupiter Research analyst said the industry structure was still immature. He cited a recent Jupiter Research Search Marketing Executive Survey, which found that 69% of a representative basket of search engine marketing services are currently conducted in-house, 16% are outsourced to an agency, and 15% aren’t done. A copy of Scevak’s presentation is posted on the SEMPO website.

Jupiter Research is a leading international research advisory organization specializing in business and technology market research in 18 business areas and 14 vertical markets. Jupiter Research is also a division of Jupitermedia Corporation (Nasdaq: JUPM), a leading global provider of original information, images, research and events for information technology, business and creative professionals.

SEMPO is a non-profit professional association working to increase awareness and promote the value of Search Engine Marketing worldwide. The organization represents the common interests of more than 165 companies and consultants worldwide and provides them with a voice in the marketplace. For more information, or to join the organization, please visit http://www.sempo.org.