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The Disconnect in PPC vs. SEO Spending Posted by randfish on Tue (10/21/08) at 12:21 AM Paid Search Ads There's a big disconnect in the way marketing dollars are allocated to search engine focused campaigns. Let me highlight: Not surprisingly, search advertising should continue to be the largest category, growing from $9.1 billion in 2007 to $20.9 billion in 2013. - Source: C|Net News, June 30, 2008 OK. So companies in the US spent $10 billion last year on paid search ads, and even more this year. How about SEO? SEO: $1.3 billion (11%) - Source: SEMPO data via Massimo Burgio, SMX Madrid 2008 According to SEMPO's data, it's 11% for SEO and 87% for PPC (with another 1.4% for SEM technologies and s turn to Enquiro: Organic Ranking Visibility (shown in a percentage of participants looking at a listing in this location) Rank 1 - 100% Rank 2 - 100% Rank 3 - 100% Rank 4 - 85% Rank 5 - 60% Rank 6 - 50% Rank 7 - 50% Rank 8 - 30% Rank 9 - 30% Rank 10 - 20% Side sponsored ad visibility (shown in percentage of participants looking at an ad in this location) 1 - 50% 2 - 40% 3 - 30% 4 - 20% 5 - 10% 6 - 10% 7 - 10% 8 - 10% Fascinating. So visibility is considerably higher for the organic results. What about clicks? Thanks to Comscore, we can see that clicks on paid search results has gone down over time, and is now ~22%. Conclusions: SEO drives 75%+ of all search traffic, yet garners less than 15% of marketing budgets for SEM campaigns. PPC receives less than 25% of all search traffic, yet earns 80%+ of SEM campaign budgets. Questions: * Why does paid search earn so many more marketing dollar

Oct 22, 2008 at 10:55am Eastern by Paul Bruemmer Two Ways To Justify SEO In Uncertain Times In House - A Column From Search Engine Land During uncertain economic times like these, our advice is to always stick with the fundamentals to maintain business efficiency and progress. No matter what your business model, performing the fundamentals will keep you on-track and in-line for leveraging future success. If the C-level executives in your company are having any doubts about the value of SEO and are hesitating to release more funding, it's time to perform a cost-benefit exercise. It's your job as an in-house SEO manager to reestablish their confidence in the value of SEO as well as your value and the value of your team. When funding gets in the way, having a narrow focus, putting it on the table, and describing company goals you are committed to are all very important. 1) Leverage Your Paid Search Data To demonstrate implicit value for SEO, start with a baseline. Show where your key terms currently rank in organic and multiply by the cost-per-click value. Run the numbers for the value of direct clicks with high search intent. One way to go about this is to calculate an Effective Cost-Per-Click (eCPC) for your organic listings: 1. Access the Keyword Tool within your Google AdWords account. 2. Type your best performing (for instance, 20) keywords. 3. Select descriptive words or phrases and synonyms. 4. Click Get Keyword Ideas. This will produce a report; select Exact within the "Match Type" field and click on Approx Avg Search Volume. 1. Look at the Cost-Per-Click column to acquire the CPC value (let's assume it's $2.00). 2. Go to your web analytics data and identify the number of organic clicks for these keywords (let's assume 20,000/month). 3. Multiply the two (CPC times the number of organic clicks (in this case $40,000/mo)). 4. Create a spreadsheet with your best performing keywords and make the statement, "if we

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Social Intent vs. Search Intent More importantly, Facebook ads not only fail to gauge what a user's current intent might be, but they fail to acknowledge what Facebook know a user's intent is. Essentially, most Facebook users log on to socialize, not buy. In this respect, Facebook ads can make you look a lot like the guy who goes around a cocktail party trying to sell insurance. Social intent is probably one of the main reasons that Facebook's average CPM ranges somewhere between 13 and 53 percent below the industry standard. Indeed, as ClickZ reported, Facebook ads get half the clicks of network banners and the average click-through rate (CTR) for Facebook ads in 2009 was 0.063 percent and 0.051 percent in 2010. Conversely, the average CTR on AdWords is around 2 percent. That's 20 times the industry standard and almost 40 times that for Facebook ads. This is probably because many search sessions revolve specifically around making a purchasing decision -- maybe not buying right then and there, but deciding how the user will buy when they're ready. And when they are ready, there's a decent chance they'll return to Google to recall that product or purchasing decision they arrived at during previous sessions. Context is Everything Given Facebook's position in the marketplace, this isn't to say that Facebook ads should be ignored by marketers. Indeed, Facebook has become such mainstream channel, that it can't be ignored by certain advertisers. As this Webtrends study points out: ... industries that are fun to discuss with our network are seeing higher CTR. ... Brands that are social get a higher CTR, which translates into better engagement metrics: Post Quality Score, EdgeRank, Feedback Rate, and others. In turn, Facebook rewards such behavior with a lower cost-per-click and greater visibility in the News Feed. It's the marketers and/or campaigns that are driven by results, however, that should think twice before investing too much into Facebook -- especially if

Only 61% of consumers rely on traditional search engines to find web sites today, compared with 83% in 2004. That means marketers need to become well versed in multiple types of online media-not just search engines-to help consumers find products. A new Forrester Research report, "The Forrester Wave: US Search Marketing Agencies,

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