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Spending on Search Continues to Outpace Online Ad Industry

Third Quarter Industry Performance Reported by EngineWorks®

November 11, 2005 (Portland, OR)   EngineWorks, Inc., (www.engineworks.com),

a search engine marketing and automation technology company, has compiled

information that confirms spending on online search marketing services continued

its impressive gains during the third quarter (Q3) of 2005, and that it is

projected to increase even more in coming year.

Industry surveys indicate that as year-over-year growth in the total online

advertising industry increased by almost thirty percent (30%) during Q3 2005,

spending on search marketing services increased by even a greater percentage

in the same time period. Pacific Crest Securities reports that during the

third quarter of this year, growth in paid search continued to grow, with

no signs of significant slowing on a year-over-year basis. The firm also added

that this spending is predicted to be in line with the growth rate in the

first half of 2005, which was slightly more than thirty percent (30%).

This survey of media buyers by Pacific Crest indicated that budgeting for

2006 has already started, and that the strong growth and positive trends will

continue in both paid search and online advertising. A high percentage of

these media buyers were “very optimistic about Q4, and indicated that they

expected growth in online ad spending to accelerate”. Pacific Crest predicts

that the increases in seasonality and the end-of-year budget flush will drive

this acceleration of online advertising as a percentage of overall ad as spending.

The online advertising industry, which last year grew more than twenty-five

percent (25%) to $9.1 billion, is projected to total more than $11

billion in 2005, according to eMarketer, Inc. Currently, search engine

marketing revenues represent thirty-six percent (36%) of total online

ad revenues, and are expected by US Bancorp Piper Jaffray to grow by more

than forty-percent (40%) annually to $7 billion in 2007. From a report

in July 2005, SG Cowen predicted that search ad spend would reach

$5.6 billion this year, and that it will to grow to more than half

of the projected $22.9 billion online advertising market by 2009.

About EngineWorks®

EngineWorks is an innovative online search engine marketing (SEM) services company headquartered in Portland, Oregon. The firm provides sophisticated SEM services that enhance the design and performance of commercial Web sites. Proprietary Search Engine Optimization (SEO) strategies improve the attractiveness of Web sites to search engine algorithms, resulting in highly ranked search listings throughout the world's most important engines and directories. Professional Paid Search Marketing campaigns deliver online customers through popular Pay-Per-Click (PPC) and Paid Inclusion engines. Finally, Social Media Marketing (SMM) services leverage conversational marketing through emerging social networks, blogs, and online communities to increase the volume and richness of two-way communication pertaining to your brand. EngineWorks is located at www.engineworks.com.

For more information, please contact:
Media Relations
prdept@engineworks.com
503.223.5700

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