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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

Tool time Lastly, augment all of that good data with professional keyword research tools. Microsoft offers a tool called adCenter Excel Add-in Keyword Research Tool for versions 2003 and 2007. (Note: You'll need to set up an adCenter account before you can use the tool. Luckily, unlike most other online ad vendors, adCenter offers customer support over the phone with a real person - at no cost to you! - to help you get your account set up and running.) Both Google and Yahoo! offer their own keyword research tools. In addition, there are many third-party keyword research tools available, some for free, others for a fee. The adCenter Excel Add-in Keyword Research Tool can do the following: * Scan your current website and extract the keywords that offer the highest confidence levels based on their current usage * Suggest new keywords based on user behavior or your existing keyword list * Provide: o Research data on top performing keywords o Performance data on the keywords you specify o Information on keyword usage based on geographic and demographic data Note that the keyword tool is primarily designed to help users figure out which keywords to use with their Pay-Per-Click (PPC) advertising campaigns. However, the tool's output is also extremely relevant to developing or revising a keyword list for your website as part of an SEO update. We'll talk about the process of creating a PPC campaign in later posts. To use the tool, I recommend adding your keywords (one word per line) to an empty Excel spreadsheet, listing them in column A. Select the words for which you want to see adCenter's confidence level rating, click the Ad Intelligence tab, and then click the lower half of the Keyword Suggestion button on the toolbar, using both the Contained and Similarity tasks. You'll get a list of additional suggested keywords and phrases that correspond to each of the keywords you selected. Use the ones that are relevant

Oct 6, 2008 at 8:06am Eastern by Barry Schwartz SEOmoz Crawls Web To Expand SEO Toolset Rand Fishkin of SEOmoz announced they have been working for about a year on building out an index of the web, in order to be able to provide SEOs and SEMs with a toolset they have never had before. SEOmoz has crawled and built a 30 billion page index of the web. Rand explains this index is still growing and is refreshed monthly. The purpose, "to help SEOs and businesses acquire greater intelligence about the Internet's vast landscape." Part of the indexing was to build out a new tool named Linkscape. Linkscape gives SEOs "online access to the link data provided by our web index, including ordered, searchable lists of links for sites & pages, and metrics to help judge their value," said Rand. I hope to play with it more after the SMX East conference, but with a quick trial, it seems pretty comprehensive. SEOmoz also launched a new design and has given PRO members more options and features. To read all about these features and the tools, see Rand's post.

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