• by Gavin O'Malley  @mp_gavin, August 11, 2009

Search marketing software provider Covario on Tuesday plans to launch a campaign to more aggressively market its agency services capabilities.

"We've traditionally outsourced paid and organic search services to agencies like MRM and AKQA," said Craig Macdonald, chief marketing officer at Covario. "We didn't want to compete with agencies because we were a software company."

To spearhead the new effort, Covario recently hired Mike Gullaksen -- previously SVP of search at rival iCrossing -- as its new VP of search strategies.

In the newly created position, Gullaksen is responsible for Carvario's Data Driven Decisions -- or D3 -- automated system, combined with its agency services, to manage clients' SEO.

"In SEO, as well as all advertising channels, Covario's 'next generation' approach -- one that leverages automation to its fullest, provides visibility and reporting to advertisers, and focuses efforts on the issues that drive change -- is winning business," said Gullaksen.

Of the company's roughly 70 clients, four have already signed up for agency services. Looking for more efficient ways to purchase its media, Computer maker Lenovo worked with Covario to execute a successful buy of TV time through Google TV.

Through automation, Covario is promising to cut clients' administration costs from approximately 55% of their total paid and organic search budgets down to about 20%, according to Macdonald.

This year alone, U.S. advertisers will spend $2.5 billion dollars on services and technologies for SEO, according to Forrester. In addition, Forrester found that 54% of this investment is spent with agencies.

Overall spend on interactive advertising is expected to increase from 12% of overall media spend in 2009 to 21% in 2014, according to Forrester Research.

Headquartered in San Diego, Covario was known as SEMDirector until early 2008.