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Holiday Marketers Should Enjoy Big Numbers

By: David Utter

's Performics division expects 53 percent growth for online sales in the fourth quarter of 2006, and budgeting and marketing costs for Internet retailers should increase as well.

Holiday Marketers Should Enjoy Big NumbersBased on its observations of search engine marketing spends and related figures going up year over year, Performics forecasted those SEM efforts will payoff for their backers.

"Online marketing is passing over a huge hurdle," said Cam Balzer, director of search strategy at Performics. "Experienced SEMs and program managers are harnessing the full value of search and realizing that maintaining an aggressively managed campaign online"one that drives online sales, offline sales, increases brand awareness and maximizes your search budget"is critical to overall marketing success.

"This potentially means big business for the final quarter of 2006 and the upcoming holiday season."

Holiday sales in 2006 should surpass 2005 sales, while the SEM side likewise continues upward:

Growth in search engine marketing continues unabated, with year-over-year conversions, search spend, and impressions displaying increases of nearly 50%; active keywords have grown by a robust 58% and total clicks by 32%.

Cracking the code for budgeting and spending should be a matter of combining first and second quarter spending, Performics noted. "Additionally, October is the optimal time to detect and correct any campaign variances in order to capitalize on the holiday rush. Intervention at this time can prevent substantial loss and improve November and December revenue," the report said.


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