U.K. firm E-consultancy expects search engine marketing (SEM) spending in the U.K. to slow down substantially this year.

Jack Marshall of The ClickZ Network reports that E-Consultancy’s recently released 2008 search engine marketing buyer’s guide sees U.K. spending to rise by 24 percent to £2.75 billion (U.S. $4.9 billion) this year. This is significantly down from the 58 percent year-on-year growth in 2007 and 65 percent year-on-year growth in 2006.

Paid search is expected to constitute 88 percent of the total spend, with 12 percent allocated to search engine optimization (SEO). Growth is, however, higher in SEO. SEO spending set to grow by 32 percent, while paid search is expected to grow by just 23 percent.

Source: Jack Marshall, “U.K. SEM Spend Slows, Signaling Market Maturity”, The ClickZ Network, September 4, 2008

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