• by December 7, 2004

JupiterResearch reported today that search engine marketing (SEM) agencies are responsible for the bulk of SEM spending in the United States. The growth of search advertising and its importance to marketers' media plans has given rise to SEM specialists and firms that know how to plan, optimize, and get results from an increasingly sophisticated array of search-related services.

While SEM agencies are responsible for the majority of search spending, Jupiter finds that only 31 percent of search marketers use an agency to coordinate SEM campaigns. Such marketers account for 51 percent of the total spending on paid search, according to a JupiterResearch survey of search marketers.

The survey also reviews and rates 14 SEM agencies. Jupiter reports that Decide Interactive/24/7 Search, Did-It.com, Impaqt, Performics, and Avenue A/Razorfish Search achieved high ratings in paid listings management, while iProspect and Impaqt surpassed other vendors in terms of organic optimization. "As search marketing grows in complexity and advertisers increase their search budgets, we expect the market for SEM agencies will continue to expand," says Nate Elliott a JupiterResearch associate.