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Via Searchengineland came this news that the paid search market in the UK is getting very big:

• Online advertising spend in Britain grew 41 percent in the first half of 2007
• Market share is now 15 percent, more than direct mail at 11.8 percent
• Online ad spend could reach 2.75 billion pounds by the end of the year

Paid search is up 44 percent which basically that prices are going to continue to rise. Why?

As more and more people try paid for search, their level of expertise makes them head for the low hanging fruit. So, rather than optimise their adverts, they think it’s all in the auction. So they bid high on loose keywords.

Many advertisers also try to grab business by using irrelevant keywords. ie. Do a search for web designers in Basingstoke and click on some of the adverts… how many of them are in Basingstoke?

I have spoken to a number of people who have built their strategy just around paid search. It works for them but it’s getting harder.

My advice, split your budget and invest in content, or at least a search engine friendly website. Sooner rather than later as well. Natural listings take time, unlike paid-for advertising which is instant. But, the natural stuff is so much more sustainable over the medium to long term.