Search Engine Marketing - Written by Antonio Altamirano on Thursday, May 22, 2008 20:53 - 5 Comments

PPC/SEM Ineffective. The industry needs to evolve or slowly deteriorate

By now, most of you have read the New York Times article that highlights Engine’s Ready study about conversions from organic search vs. paid search.

The fight is about the influence of both channels on the bottom-line. This study helps trigger the conversation about the future of search marketing.

The fact is that paid search marketing is far from an optimal way to spend ad dollars. It is a passive medium with hit-and-run methodology that has worked well for a while now but it is starting to break down. With CTRs of less than 5% on average and a less-than-optimal long term customer acquisition model, search is becoming the new banner of the online advertising industry. The internet is evolving towards the development of deeper customer experiences and towards a higher level of customer-provider trust . In this new internet panorama, search marketing (as it is today) is at odds with this evolution.

Customers want more. Advertisers want more. Search is the middle man that needs to be cut out of the equation or evolve into something better.

Social networks offer a medium where internet citizens feel comfortable spending their time and interacting with old and new brands. They are within a circle of trust that provides support, guidance and suggestions about products and services. they know you. They know what you like. They have networks you can tap. They are human. They understand needs.

That is the reason why (at the present moment) targeted search ads do not work within a social network.

Why would people care about a search result when they have hundreds of friends that can help them figure out the best way to purchase a product or service.For instance, it is nearly impossible to find a unique travel experience by searching the internet. There are hundreds upon thousands of results that have zero relevance to what you are looking for. A search engine does not know you. The question is not if but how the search marketing industry going to evolve.



5 Comments

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Bobby Hewitt
Mar 29, 2008 14:01

I would love to read the full article, can anyone share the link? Oh wait I could just search for it.

I disagree with search as a passive medium with hit-and-run methodology, perhaps contextual ppc campaigns but not direct searches. People specifically type in their search terms which is active not passive. They are looking specifically for a particular thing. Marketing to a prospect at the exact moment they are looking for a widget that you sell or specialize in is not hit-and-run, it’s relevant to their need at that exact moment.

antonio
Mar 29, 2008 21:29

Completely understand your POV. PPC contextual is definitely not a positive search marketing strategy and the large volume generating channels are polluted. In terms of “pure” search, the channel is better but it is starting to become polluted with plenty of fraud and low CTRs plus the inability (yet) to retain customers and engage them enough so that they become more valuable than just the click.

Bobby Hewitt
Mar 30, 2008 10:33

I agree with you there, but it becomes the age old problem of how to get visitors to your site. On the flip side it’s up to the site to use design persuasively to increase conversions.

antonio
Mar 30, 2008 23:01

I think we are in the same page, however, with design you can only do so much. Social networks and social media is condesing people’s profiles into one place and at the same time businesses have to have representation across multiple sites where people are.

Business information is distributed while people are concentrating within internet hotspots.

henrry134
Apr 10, 2008 9:58

It’s true. Paid search marketing is optimal way to spend online advertising. In PPC higher your bid, the greater the chance that your ad will be placed above your competitors ads.

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