Search Engine Marketing (SEM) - Organic Results and
Pay Per Click (PPC)!

February 19, 2005.
It has been just over ten years since the public release of the first
modern search engine, AltaVista. Infoseek, Lycos, HotBot, Northern
Lights, and dozens of others quickly followed AV. In previous years
search marketing was much simpler. Since then we've seen the rise
and fall of several search firms. Almost as many ideas on how the
business of search should be conducted have come and gone in the same
period of time. While search has grown far more sophisticated in its
first decade, the free (or Organic) listings have been a constant
common factor for every search engine.
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Organic listings are not generating the column space they once did.
Now that an apparently solid business model has been found in paid
contextual advertising, search engines and search marketing firms
are devoting a lot of attention to purchased placements. Free listings
are seen as the loss-leader offered by search engines to attract user
attention, much as discounted items at a department store are used
to attract buyers to more expensive purchases. Like their counterparts
in the corporate world, many new SEMs see their road to profit paved
with paid-listings. Nevertheless, the Top10 Organic placements continue
to be the most effective area to appear on the Search Engine Results
Pages (SERPs) as evidenced by Lisa Wehr's recent Organic placements
survey. Organic results are extremely important for a number of reasons,
all of which amount to higher conversions.
In using the word “corporate”, I am referring to the
medium to large-scale businesses. Most smaller firms can quickly incorporate
search marketing and website design. Larger organizations tend to
have unique IT and Marketing departments with a lesser degree of crossover
in communication or responsibility. In this type of environment, developing
a coherent search engine strategy can become complicated. Organic
SEO is often difficult for the corporate sector for many reasons.
Successful Organic campaigns often require new levels of coordination
with the involvement of multiple departments beyond Marketing and
IT.
Recently the search-related and mainstream media have focused on
the dominant profit model, contextually delivered pay-per-click ads
such as Overture or AdWords. In most circumstances, both have virtually
ignored the Organic listings. The current PPC regime is extremely
interesting for the media as it not only provides the profit necessary
for the sector to grow, it enables marketers to target their audiences
with increasing precision and control. It is also the driving force
behind almost everything the various search firms have been up to
in recent weeks from the wave of innovation to the rash of acquisitions.
Many corporate marketing departments have only recently realized
the importance of search marketing. It is only in the last 2-years
that search was placed on the radar screen of corporate marketers.
They are learning as they go along and we the media are their main
source of information. PPC is the most interesting development in
years but in our rush to press, we may be creating a new paradigm
in corporate search advertising, one that does not necessarily take
a holistic view of the sector.
While there is great interest in being involved in the search-advertising
revolution, many corporate websites continue to ignore Organic optimization
assuming their size, brand name and longevity guarantees front-page
Organic placements. That works for some but there are several Fortune
500 firms that still don't appear in the Top10 Organic listings under
keywords relating to their products or services. This results in lost
potential. They are basically giving visitors to the competition.
A wiser approach for larger organizations is to continually strive
for Top10 (preferably #1) placements while taking full advantage of
the expansive world of PPC. Managers of corporate websites that do
not place in the Top10 under keywords directly relating to their business
(such as their name or major product names), really should think about
organizing a marketing/IT meeting and hire an SEO consultant to develop
a strategy. The process might involve as much education as it does
long-term planning.
One of the main reasons for a lack of interest in the Organic listings
is that large-scale advertisers are unable to base their yearly advertising
plans on expenditures that cannot produce quantifiable numbers. Organic
search engine optimization is about trying to achieve Top10 placements
against thousands or possibly millions of competing websites. As a
common point of ethical behaviour, most SEO firms will not guarantee
Top10 placements to their clients. Paid-advertising offers solid numbers
for corporate advertisers with cost factors controlled by the advertisers
(or their third parties) directly. Organic SEO and the process of
organizing an Organic campaign seems complicated and unquantifiable
to many marketers.
Both AdWords and Overture can guarantee front-page SERP placement
under specific keyword phrases, and both can also guarantee the ad
will be seen in dozens of other venues. In some cases, PPC represents
the least expensive method of placing an ad in the electronic versions
of papers such as the New York Times or Toronto Star. The complex
common sense inherent to a global contextually driven advertising
campaign is simple for marketers to understand, plan around, and sell.
If managed well, a PPC campaign works amazingly well, often bringing
unexpected benefits. One of our clients in the tourism business was
found, interviewed and popularized by a travel-writer for the NYTimes
because of a PPC listing. She is now a travel and hospitality “expert”
in her region and finds herself routinely quoted in travel sections
around the world. Needless to say her business has increased dramatically.
She also continues to rank in the Top5 in Organic listings, adding
both credibility and a higher number of visitors to her website.
PPC advertising is not without risks. Many savvy web surfers know
the difference between paid advertising and Organic results, tending
to favour the Organic listings over the paid. There is also the very
real and growing threat of click fraud. Regardless of risk, contextual
delivery of search driven advertising is expected to grow into an
11 – 20 billion-dollar industry over the next five years. For
many large organizations, especially ones in highly competitive industries,
costs relating to PPC advertising are expected to increase rapidly
over the coming years.
Adopting a strategy which combines Organic placements with PPC advertising,
large websites receive more visitors, gain increased credibility through
multiple references on a SERP, and generally make more sales. Focusing
on Organic SEO can also help produce stronger Local search results
as a focus on keywords in a title or description can place a business
higher than another (within fixed parameters such as distance from
epicenter of search radius). It also makes for a better, more focused
website.
Article by:
Jim Hedger,
News Editor - StepForth
Search Engine Placement Inc.
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