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JupiterResearch reported that Search Engine Marketing (SEM) agencies now direct the majority of SEM spending in the United States.

Just a few years ago, most SEM spending went directly to the search engines. Today, SEM is becoming a more mature market like traditional advertising in which agencies play a substantial role. Indeed, while just 31% of search marketers use an agency to manage their SEM campaigns, those marketers account for 51% of the total spending on paid search, according to a recent JupiterResearch survey of search marketers. This marks a significant increase in the spending directed by agencies over the past 18 months.

The data was released in JupiterResearch's Search Engine Marketing Agency Constellation report, which reviews and rates fourteen leading SEM agencies on market suitability, overall business value and agency size. According to the JupiterResearch report, Decide Interactive/24/7 Search, Did-It.com, Impaqt, Performics and AvenueA/Razorfish Search are closely grouped for top ratings in paid listings management. iProspect and Impaqt outpace all the other vendors in 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," said JupiterResearch Associate Analyst Nate Elliott. "With so many agencies offering search engine marketing services, it can be hard for advertisers to choose the right firm. The SEM agencies that have built their own bid management and campaign tracking tools, and that use extensive data to create campaign strategy, are typically able to generate better results for their advertisers," added Elliott.

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