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02.27.07


Advertisers Not Ready Yet For Video, Mobile

By David A. Utter

Traditional search advertising with its contextual relevance and cost effectiveness still has the hearts and wallets of marketers according to the latest survey from the Search Engine Marketing Professional Organization (SEMPO).

It's too early for search advertising companies to expect a premium price for mobile or video search ads.

Many marketers just aren't ready to adopt a new advertising scheme that isn't priced competitively with paid search.

The SEMPO survey found that the interest in placing search ads on mobiles or video exists.

There is a perception that these new outlets are largely untested.

Two in five respondents to the survey would be willing to try video search ads at the same price for search advertising.

Those who are willing to pay a premium don't want to pay one that is higher than 20 percent.

Mobile search ads received even less enthusiasm when the suggestion of a premium comes into the discussion Almost half the respondents said no to any sort of mobile advertising premium.

Nearly a quarter of those surveyed want to pay less for mobile search.

Both outlets have been touted as the next big thing in advertising.

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Millions of people carry mobile phones, and online video continues to grow in popularity.

The need to find content within those two environments presents opportunities for search.

"An emerging type of new media where no one wants to pay. Where have we heard that before?" asked Kevin Lee, a member of SEMPO's board and chair of their research committee. "Cable TV, the first three years of PPC search – these frontier technologies all experienced initial skepticism in the marketplace. Now they are part of the essential fabric of our economy. Video and mobile search will go through the same evolution."

For right now, marketers don't want to add video or mobile search to their budgets.

SEMPO has forecast a rise in search marketing spending to $18.6 billion by 2011.

Though the numbers are growing, it could be some time before breaking down the numbers by video and mobile search spending shows up as a significant percentage of that spending.


About the Author:
David Utter is a staff writer for WebProNews covering technology and business.

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