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Written by Erika Shaffer
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Tuesday, 13 July 2010 18:56 |
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Search Engine Marketing (SEM) is another term that is widely used. In layman’s terms, it is connecting searchers who are looking for information related to your brand with the content they are seeking. SEM makes your brand visible within the search engines to attract new visitors to your site.
There are three different ways to conduct SEM:
Natural or organic listings – Results from search engine queries are ranking in terms of relevance between the keyword phrase typed into a search engine and web page according to the ranking algorithm used by a search engine. The method for achieving placement is called Search Engine Optimization (SEO).
Paid or sponsored listings (PPC) - A relevant ad (this is usually a text ad) with a link to a destination page is displayed when the user of a search engine types in a specific phrase. A fee is charged for every click of each link, with the amount bid for the click the main factor determining the ad position. These links are usually highlighted in some way on the results page.
Content-network listings - Ads are displayed on third-party sites that have an Adsense relationship with Google, or which display Yahoo or Miva listings on their website. These tend to have much lower click through rates.
Search Engine Optimization
SEO is the most important search marketing approach since most searchers click on natural listings. The 80:20 rule generally holds true: 80% of the clicks are on natural listings, while 20% of the clicks are on paid listings.
Advantages of SEO
SEO is relatively cost-effective since there is no payment to search engines for placement services. One of the few costs associated with SEO is the time involved to create posts that will rank based on their content, which must be deliberately crafted for optimal results.
The cost of SEO is fixed, independent of click volume. The cost per click of SEO declines over time after the initial optimization costs and lower ongoing costs. In contrast, paid search is essentially a variable cost.
There are no media costs, however, SEO is not free. Resources are necessary for key phrase analysis and to complete the optimization on the website pages.
Disadvantages of SEO
The biggest challenge for SEO is that there are over 8 billion pages in the search engine indexes with your position in the SERPs dependent on constantly changing algorithm, which is not published. In this case, making your pages visible may require specialist knowledge, constant monitoring, and the ability to respond immediately.
Because you are subject to changes in algorithm, you forfeit control of the results. Competitors and affiliates using less ethical “black hat” SEO techniques can prevent you from playing on a level playing field.
In competitive sectors it may be very difficult to get listed in the top few results for competitive phrases. This is when PPC may have to be used.
Paid Search
While SEO is the “rock star” of the search world, PPC should not be overlooked, especially since 80% of clicks are on paid listings.
Advantages of PPC
The predictability, traffic rankings, returns, and costs tend to be more stable and more predictable than SEO. In terms of measuring the return on your investment (ROI), SEO can take much longer to evaluate.
This is the most straightforward way to achieve high rankings: outbid your competitors. However, Google takes the Quality Score into account.
SEO requires long-term, technically complex work on page optimization, site restructure and link building, which can take months to implement and results to occur.
PPC listings appear much more quickly—usually in a few hours.
PPC is an extremely flexible method. Creative and bids can also be readily adapted or turned off for particular times. The results of SEO can take weeks or months to be achieved. Content modifications to existing pages for SEO can usually be included within a few days. PPC budgets can also be reallocated to in line with changing marketing goals.
Tests have showed that there is a branding effect with PPC, even if users do not click on the ad.
Disadvantages of PPC
High stakes, competitive bids can get expensive as you try to outbid your competition. Higher costs are associated with PPC. However, if SEO is effective it will almost always deliver a lower CPC.
Big players with large budgets almost always have a competitive advantage. Companies with smaller budgets or a narrow range of products that want to increase their lifetime value may not be able to compete.
In competitive sectors it may be very difficult to get listed in the top few results for competitive phrases. This is when PPC may have to be used.
Complexity of managing large campaigns. PPC requires knowledge of configuration and bidding options of the reporting facilities and different ad networks. Managing a PPC campaign may require a lot of time in order to stay competitive.
Sponsored listings are only a part of the SEM mix. Many searchers opt not to click on these, so you cannot maximize the effect.
Click fraud can be a problem for some. |
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Last Updated on Friday, 17 September 2010 22:44 |
