I recently came across this article from eMarketer.

New data provided by the Search Engine Marketing Professional Organization (SEMPO), based on research conducted by Radar Research, sheds light on how search marketing dollars are being spent.

In 2008, $13.5 billion was spent on search marketing. The space was mostly made up of paid placement and search engine optimization (SEO), with a sliver going to technology providers whose software assisted in the execution of search campaigns. Paid search ads saw 88% of the total pie, SEO only 11%.

The ratio of paid placement to SEO will change in the future.

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