The search market in the UK was worth £436 million in 2010 compared to £376 million in 2009, an increase of 16 per cent.
The figures were revealed in Econsultancy's 2011 SEO Agencies Buyer's Guide, which analysed 27 of the leading firms in this sector.
It found that the number of firms planning to increase the money they spend on search engine optimisation (SEO) grew from 55 per cent in 2009 to 60 per cent in 2010.
The guide also revealed that Google still possessed the lion's share of the search market in 2010, even though Microsoft and Yahoo! teamed up to rival the firm's dominance in search.
Jake Hird, senior research analyst at Econsultancy, commented: "Overall, the SEO market continues to flourish, as it is a proven and highly effective method of delivering return on investment by successfully driving traffic and increasing sales."
Google's annual Zeitgeist list revealed the top ten most searched-for terms in 2010, with 'chatroulette' topping the list.
Other popular terms included the 'BBC', 'Facebook' and 'YouTube'.
