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Monday, April 25, 2005

Search Engine Metrics... Organic Search vs. Paid Placement

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Subject: Search Engine Metrics... Organic Search vs. Paid Placement

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Authors of EBooks may submit their publications to SPN via email: ebooks"AT"sitepronews.com Link to SiteProNews Link your site to SiteProNews, the newsletter and resource site for Webmasters. Or, Add SPN to your site with just 2 lines of Java-script code. Top content for your site without any of the work. Visit our SPN Promotion Partners page. Some great sites have opted to support the SPN newsletter. SiteProNews Partners SubmitPlus - Promote your site to 110 search engines... FR'EE! Template Monster - World's number one website templates are available for immediate download. PreWired.com - Providing ISPs & Publishers a Web based revenue stream! FindMyHost.com... Review detailed Report Cards of web hosts who made the grade. Web-Source.net... Your Guide to Professional Web Site Design & Development. TheCgiSite.com - A directory of programming resources. SiteUptime.com - A fr-e-e website monitoring service, providing performance-reports and uptime stats. 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Accordingly, the most cost effective way to market your web site online is to obtain 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 Internet among 79% of users. Source: September 2002 Jupiter Research Survey. So that being the case, whatever your promoting you'll want to make sure it can be found on the first page of the search engines results page.The reason is numerically simple. An Iprospect Survey in 2002 reported that 78% of web users abandon their search if the first 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 reporting results of Spring 2002 IProspect survey.Combine those facts with the Internet's explosive growth rate of 1.8 Million people worldwide going online every week for the very first time, Source: Official Guide To Internet Promotion and you can soon appreciate what a top 10 ranking can mean to you.Google receives approximately 39.4% of all search engine traffïc. Yahoo receives approximately 30.4%. They're simply the largest search engines being utilized online today.Bringing up the rear is MSN at 29.6%, and AOL 15.5% then Ask Jeeves with 8.5%. Source: Nielsen//NetRatings January 2004 How much traffïc is that? Well, Google and its partner sites were reporting a whopping 250 million searches a day in February 2003.Overture and its partners were reporting over 167 million searches per day. Inktomi reported 80 million followed by LookSmart with 45 million per day.FindWhat reported 33 million while Ask Jeeves reported 20 million, Alta Vista reported 18 million and finally Fast reported 12 Million searches per day. Source: Searchenginewatch.com 2004.With all said, you can easily see how your search engine rankingsare directly proportional to the traffïc your web site receives, and your site traffïc is directly related to your potential to profit online.Oh, and in case your wondering how much monëy is spent online; a recent Forrester Research Report indicated that online spending reached $95,700,000,000 million in 2003! That's a cool 95.7 billion dollars. Projected online spending is estimated to grow to $229 billion in 2008! A whopping 139% increase in online spending! Source: Forrester ResearchNow 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. Although it does leave a question unanswered in my mind, what has a higher ROI... organic search engine optimization or paid search?According to SEMPO's key analysis, the U.S. & Canadian SEM Industry Size Estimate by tactic in 2004, organic SEO accounted for 12% of the market share or $492,057,200 while 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 continuing to escalate.If the escalation continues to rise it could make paid search engine advertising exponentially cost prohibitive 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, while they say prices have gone up 26% on average in the last 12 months. That leaves a 7% advertising margin to maintain current profïts for 2005!SEMPO's data also noted that advertisers will get smarter about managing their paid placement programs before they cut back on spending.Put A Google-Type Ad Box on 12 Search Engines Your Keywords - Top 10 Placement More Than 40 Million Searches per Month All for $12/URL or Less, PLUS Sign Up Today and Receive FR-E-E Bonus Software This is also consistent with a report released by Nielsen/ NetRatings indicating that the growing demand for search engine advertising is outstripping the supply of currently available advertising space.These findings seem to indicate the inventory of keywords is approaching a critical demand problem however; most advertisers felt they still have some degree of price flexibility in their paid placement programs before they reach the threshold of diminishing returns.Is there any wonder why organic search engine positioning has gained popularity for online marketers in 2004? Could it be higher (ROI) return on investments?SEMPO also cites that 43% of advertiser respondents have shifted their budgets away from other marketing programs for Organic SEO.So what does it all mean? Let the numbers speak for themselves. Organic SEO is undeniably gaining favor over the lower ROI paid advertising. This is evidenced by virtue of the fact that paid advertising is becoming less profitable.Although paid advertising will continue to hold a large portion of the market share, as paid advertising returns diminish and keyword costs soar, my early 2005 forecast is for the materialization of a progressive organic SEO market trend to facilitate the need for advertising space.About The Author Lawrence Deon is an SEO/SEM Consultant and Author of the popular search engine optimization and marketing model Ranking Your Way To The Bank. 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Over 172,000 people just like you have used Exact Websites to build professional websites, complete with web pages, photo albums, email, links and 27 other features without ever having built a website before.WebPositionWebPosition helps you maximize your site’s search engine visibility by providing a complete SEO solution including rank reporting, keyword research, page optimization and submission. Download a free trial today! Have an Opinion on Today's Article? Post Your Comments in the SEO-News Forums Sign Up for FR-E-E and Participate SiteProNews - The Net's most widely read Webmaster newsletter You are currently signed up to spn-html as: To discontinue mailings, send a blank email to leave-spn-html-177263A"AT"nmrmail.com Jayde Online, Inc. Suite 190, 23-845 Dakota Street Winnipeg, MB R2M 5M3 (c) Copyright 2004 All rights reserved

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