22 May 2009

Organic Search versus Sponsored Search Results

Search engines such as Yahoo, Google, MSN and AltaVista generally deliver two types of search results namely; sponsored results and organic results. A sponsored or paid listing usually refers to one which is achieved through pay-per-click (PPC) search engine advertising such as Adwords. An organic listing on the other hand is achieved through search engine optimisation (SEO). These are the two most popular Internet marketing techniques. They are both “white hat” means of attracting a higher quantity and quality of traffic to a particular website which is often the primary Internet marketing objective.

As a result of years of practice, experts in the field of Internet marketing have developed a number of techniques which they employ to improve a websites search engine ranking. These techniques are collectively known as search engine optimisation. Although each expert practices his own brand of SEO based on his specific experience, some of the most effective SEO interventions include:

  • Keyword research
  • Keyword density analysis
  • Web page optimisation – title tags, meta tags, page URL and page content
  • Image optimisation
  • Submission to search engines and directories
  • Link building
  • Affiliate programs
  • Tracking and reporting

Pay-per-click is based on the concept of purchasing advertising space however it does differ from a traditional print advertisement in that the advertiser bids for a specific search phrase and is charged each time a visitor clicks through to their website. Adverts look almost exactly like organic search results, except that they are served as “sponsored links” and are ranked or listed according to how much the advertiser is willing to pay for the phrase.

Why “Organic”?

Organic search or natural search is the term used for describing an algorithmic search engine raking. In other words a ranking which is achieved by satisfying a search engines algorithmic criteria. Without getting into too much detail about the ins and outs of search engine technology it bears mentioning that search engines deliver results based on a set of criteria which extensive research tells them will satisfy their users input query.

People often ask how the word organic relates to search engine results. On the one hand the dictionary definition of the word organic is: having properties associated with living organisms. On the other hand, the word organic brings to mind something which is nourishing, wholesome or healthy. Although many traditional marketers would disagree, one of a website’s primary functions is that of being a resource. Internet marketers know that resourceful websites which “feed” their users interests and imaginations attract traffic and garner brand loyalty.

While SEO takes time (usually a few months) to take effect and involves structural improvements it is also more cost effective and more durable than other Internet marketing techniques. It is thus perceived as the “healthier” Internet marketing alternative. Another reason why websites may be associated with living organisms is because of their tendency to change, grow and mature.

Organic Search vs. Pay-Per-Click

As mentioned above both sponsored and organic search results are very effective ways of attracting traffic and optimising Internet marketing efforts. Both techniques are recommended and neither method can be said to outperform the other. A generalisation in this regard would fail to take into account internal and external environmental factors such as industry performance, competitors, budget and marketing objectives to name a few.

The major differences between the two methods come down to time and cost. PPC allows you to get to the top quickly whilst attaining the same results organically could take considerably longer. The cost of a PPC campaign will depend on the demand for your search phrase or keywords. The more popular the phrase the more costly the PPC campaign is likely to be. This in turn will impact on the campaigns sustainability. Although SEO may take longer to implement effectively results will be sustained over a longer period of time.

Organic Search versus Sponsored Search Results Bookmark and Share

13 May 2009

Recession: Why Some Industries like Internet Marketing continue to thrive

A recession is defined as a decline in GDP for two or more consecutive quarters. It is a period of general economic decline characterised by rising unemployment, lower reported company profit and a drop in household spending. The current global recession is said to have begun with a crisis in the US housing industry at the end of 2007. The recession spread quickly, plunging an integrated global economy into possibly the worst financial crisis since the Great Depression in the 1930’s.

Many sectors have been hit hard by this recession including the construction, financial and automotive industries. In-fact industries across the globe in various sectors have experienced significant declines in demand as a result of the recession. Worldwide, bankruptcy, poverty, joblessness and crime are on the rise however for some the global economic downturn tells another story.

Certain industries, it seems, are recession resistant. Despite the general decline being experienced by enterprises in all sectors some companies are thriving in these trying economic times. Two such industries include open source software and Internet marketing.

The use and development of open source software seems to be coming into its own in recent times. The recession has caused many corporations to re-consider their software options giving preference to more cost effective solutions. Companies such as RedHat, SugarCRM and Vyatta continue to grow whilst the technology sector in general is declining.

With Linux based software gaining popularity even Microsoft is including open source components in their software packages. Microsoft spokesman Sam Ramji says "The bulk of the opportunity is open source applications on Windows, but these things are all coming together. We are really bullish on being a platform for some of this innovation as customers want more functionality out of their hardware and software. We are becoming a conduit for other technologies."

Internet marketing is another industry in-which growth figures seem to climb steadily. Many organisations faced with budget cuts say they will continue and even increase spend on Internet marketing. This is not surprising, in light of the results of a 2007 survey in-which 81% of marketers surveyed say that their social media spending will meet or exceed their traditional advertising spending within the next 5 years.

Faced with tight budgets marketers are pressed to look for the best value and employ innovative marketing techniques such as those offered with Internet marketing packages. Search engine optimisation, e-mail marketing, affiliate marketing, pay-per-click and social media optimisation are measurable, efficient and cost-effective.

It stands to reason that industries which serve basic needs such as food, education, healthcare and energy will withstand recessionary pressure due to the low income elasticity of demand. Those businesses which offer great value on vital products and services will appeal to price sensitive buyers. Likewise, in the B2B arena enterprises which cater their client’s basic operational needs in a cost effective manner will thrive in the cash-strapped recessionary climate.

SEO News