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SEO InformationSearch Engine Metrics… Organic Search vs. Paid Placement
by:
Lawrence Deon
Let me preface this report by citing advertisers in 2004 have spent 4 Billion dollars on search engine marketing according to (SEMPO) the Search Engine Marketing Professional Organization.
Website marketers cited Search engine positioning was the top know-how
to driving traffic to their sites (66%), followed by email marketing (54%). Source: Direct Marketing Association. Accordingly, the most cost effective way to market your web site online is to receive several top 10-search engine rankings in the major search engines for your keywords.
According to a recent Jupiter Research Survey, searching on the search engines is one of the main uses of the Computer network among 79% of users. Source: Gregorian calendar month 2002 Jupiter Research Survey. So that being the case, any your promoting you’ll want to do sure it can be found on the 1st page of the search engines results page.
The reason is numerically simple. An Iprospect Survey in 2002 according that 78% of web users abandon their search if the 1st 3 pages don't provide an answer to their question, and 28% don’t scroll past the 2nd page of results. Source: Media Post article coverage results of Spring 2002 IProspect survey.
Combine those facts with the Internets explosive growth rate of 1.8 Million folk global going online every week for the really 1st time, Source: Official Manual To Computer network Promotion and you can shortly appreciate what a top 10 ranking can mean to you.
Google receives about 39.4% of all search engine traffic. Yahoo receives about 30.4%. They’re just the largest search engines being utilised online today.
Bringing up the rear is MSN at 29.6%, and AOL 15.5% then Ask Jeeves with 8.5%. Source: Nielsen//NetRatings Gregorian calendar month 2004
How more traffic is that? Well, Google and its partner sites were coverage a humongous 250 million searches a day in Feb 2003.
Overture and its partners were coverage over 167 million searches per day. Inktomi according 80 million followed by LookSmart with 45 million per day.
FindWhat according 33 million piece Ask Jeeves according 20 million, Alta View according 18 million and finally Fast according 12 Million searches per day. Source: Searchenginewatch.com 2004.
With all said, you can easily see how your search engine rankings are directly proportional to the traffic your web site receives, and your site traffic is directly related to your potential to profit online.
Oh, and in case your inquisitive how more money is spent online; a recent Forrester Research Report indicated that online disbursement reached $95,700,000,000 million in 2003!
That's a cool 95.7 billion dollars. Projected online disbursement is calculable
to grow to $229 billion in 2008! A humongous 139% increase in online spending! Source: Forrester Research
Now with these facts in mind I’m confident you can clearly see what a top 10-search engine ranking can mean for your bottom line. Though it makes leave a question unreciprocated in my mind, what has a higher ROI… organic search engine optimisation or paid search?
According to SEMPO’s key analysis, the U.S. & Canadian SEM Industry Size Estimate by manoeuvre in 2004, organic SEO accounted for 12% of the market share or $492,057,200 piece Paid Placement accounted for $3,341,878,176 or 81.8%.
Interestingly, 9 out of 10 respondents are actively engaged in organic SEM marketing programs accounting for 89% of the respondent advertisers. This trend can be contributed to the average cost of popular keywords continued
to escalate.
If the increase continues to rise it could do paid search engine advertising exponentially cost prohibitory for all but the largest advertisers… the 900lb gorillas!
Simply put, ROI is outpacing inflation: SEMPO’s key analysis indicates advertisers could afford to pay on average 33% more for their keywords and remain profitable, piece they say prices have gone up 26% on average in the last 12 months. That’s leaves a 7% advertising margin to maintain current profits for 2005!
SEMPO’s data besides noted that advertisers wish get smarter just about managing their paid placement programs before they cut back on spending.
This is besides consistent with a report discharged by Nielsen/NetRatings indicating that the growing demand for search engine advertising is outstripping the supply of presently
accessible advertising space.
These findings seem to indicate the inventory of keywords is approaching a critical demand problem however; most advertisers felt they still have several degree of cost flexibility in their paid placement programs before they wish reach the threshold of decreasing
returns.
Is there any wonder why organic search engine positioning has gained quality
for online marketers in 2004? Could it be higher (ROI) return on investments?
SEMPO besides cites that 43% of adman respondents have shifted their budgets away from another marketing programs for Organic SEO.
So what makes it all mean? Let the amount speak for themselves.
Organic SEO is undeniably gaining favor over the lower ROI paid advertising. This is proved by virtue of the fact that paid advertising is becoming less profitable.
Although paid advertising wish continue to hold a large portion of the market share, as paid advertising returns diminish and keyword cost soar my early 2005 forecast is for the materialization of a progressive organic SEO market trend to facilitate the need for advertising space.
copyright 2005 Lawrence Deon
Just just about the author:
Lawrence Deon is an SEO/SEM Adviser and author of the popular search engine optimisation and marketing model Ranking Your Way To The Bank. http://www.rankingyourwaytothebank.com
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