SEO business environment

Since 1995, the SEO business has gradually gained momentum. However, SEO is still is a small percentage of online ad spending. With few exceptions, SEO firms typically generate less than $5 million a year in revenue. Most firms bill on a monthly basis while some do stick with per project billing.

The typical SEO firm contract is fairly similar throughout the industry. It will usually include optimization of the site, keyword research, link building, and some form of content writing. Continuity of services across the SEO industry and the fragmented market make the SEO industry a prime target for consolidation. The consolidation of SEO firms will begin to happen this year. The first SEO firm that can build a solid book of business, either through a roll up or asset purchases, could become a major player in the Internet marketing services industry.

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