Archive for February, 2008

Feb 19 2008

Natural vs. paid search: Where should your marketing dollars go?

Published by Tom Lindmeier under Home, Noteable Posts

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Do you have a disproportionate reliance on paid search? Paid search is the fast and easy way to quickly ramp up your business but you can quickly reach a ceiling where your ROI is maxed out and efficiency gains are difficult to accomplish.

In contrast a natural search program is a slower development process with almost no efficiency ceiling. I have yet to meet anyone in the retail business who believes that their natural search program doesn’t have significant have room for improvement and unlimited potential.

A typical scenario for businesses that have moved from start-up to established is an initial push for natural search optimization that is quickly displaced by an emphasis on paid search. In most cases, this is the right decision because it’s the best strategy for quickly gaining new business. But now may be the time to go back to an emphasis on natural search optimization, cash in on the incremental gains and invest in the long-term viability of your business.

Here are some pitfalls to avoid with your new natural search strategy.

  1. Calculating the ROI on natural search programs is fundamentally different than paid search. Marketing dollars are spent and gone with no residual effect other than the lifetime value of acquired customers. Think of natural search as an infrastructure investment… it’s like digging oil wells and collecting monthly dividends for years to come.
  2. Pull the natural search program away from the IT department. While IT may be necessary to optimize the structural foundation of your site, they reach a point where they are no longer of value. Strategy and execution belongs to those who have an intimate relationship with your product line and the ability to produce well-written, keyword-optimized metadata and content and that is of genuine value to your customers.
  3. The best way to run an SEO program is in-house but it can be an incredible waste of resources if you’re training on the job. If you don’t have the SEO expertise, consider hiring an SEO expert to build processes and train staff as opposed to just outsourcing the entire program. You may also consider outsourcing the more arcane aspects such as link building.
  4. Failure to leverage paid search metrics… your initial strategy should be to cover keywords that have a history of conversion and then expand the keyword universe. If you have high rankings for paid and natural keywords on the same page, the synergy will improve the efficiency for both programs.
  5. Building a P&L is a bit more difficult for natural search programs because you need to compile more data and make difficult allocations that can be subjective. But if you do not measure natural search results to an identical detail level as your paid search program it will always be at a disadvantage when it comes time to justify your spending.
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