Search Advertising's Scalability Problems

Search advertising may seem like a safe haven for ad dollars in a time of economic woe, but the category is having some growing pains of its own. Name brands trying to expand their presence are running into roadblocks due to purchasing complexities, according to a new study by Jupiter Research.

Commissioned by search management firm Marin Software, the study found that 92 percent of large search advertisers would spend an average of 22 percent more on search engine marketing if the buying process were simpler.

79 percent of companies surveyed spend more money on search advertising every year, but 78 percent find managing large keyword lists to be cumbersome. 59 percent say they don't have enough personnel to manage their search campaigns, while 69 percent said that existing applications are not robust enough for their needs.

"Search marketing has grown extremely rapidly, but it's still a relatively adolescent business," says Marc Barach, Chief Marketing Officer of Marin Software. "It's possibly the best and most measurable ROI that companies have, but the business grew ahead of the infrastructure. The whole system is bottled up "

According to Barach, large advertisers represent about 10 percent of paid search advertisers, but north of 80 percent of paid search dollars. As he says: "They will spend more on search, but they need help," which is where Marin comes in. The company handles over $200 million of search marketing through its paid search management application.

By Meghan Keane for Wired.com