Cost Saving Opportunities for the Global SEM Services Market: Technavio

Technavio has published a new report on the global SEM services market from 2017-2021.

LONDON--()--According to the latest procurement intelligence report from Technavio, the global SEM services market is expected to grow at a CAGR of 11.1% over the next five years due to programmatic platforms driving better and measurable return on investment.

The research report titled ‘Global SEM Services Market: Procurement Market Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning, and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.

The increasing focus by businesses on achieving greater online visibility to promote their products and services is expected to drive the global demand for SEM,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “Buyers of SEM services prefer to engage with suppliers that can provide customized business solutions based on their requirements,” adds Angad.

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Cost saving opportunities in the global SEM services market

The adoption of various cost-optimization levers helps buyers of SEM services realize direct cost savings and enhance category management and value benefits (including reduced procurement complexities).

Technavio procurement experts have segmented the cost saving opportunities in the global SEM services market into the following value-enhancement opportunities:

  • Adoption of technology
  • Supplier Competition
  • Adoption of negotiation strategies
  • Optimization of procurement practices
  • Bundling of services

Adoption of technology saving aspects

Suppliers of SEM services adopt remarketing lists for search list ads, enabling better customer reach via customization of search ads for individuals that have already visited the websites. They also integrate real-time optimization of PPC and microformats to increase the effectiveness of marketing and enable better website visibility during SERP ranking. The adoption of these technologies guarantees at least 7% savings of the total category spend for the buyers.

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Optimization of procurement practices saving aspects

Buyers need to set the required KPIs and finalize a tool or a process to measure metrics such as impressions and conversion rates.

Buyers also need to have access to reports on metrics and KPIs agreed by buyers and suppliers on a periodic basis to understand the effectiveness of the SEM methods being implemented.

Bundling of services saving aspects

Sellers can bundle services related to implementation and maintenance of SEM applications to save up to 15% of the total bundled spend. Applications such as implementation, planning, training users, and providing related documentation are the most commonly bundled service offerings.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, resellers, and end-users.

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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770

Release Summary

According to the latest procurement intelligence report from Technavio, the global SEM services market is expected to grow at a CAGR of 11.1% over the next five years.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770