Organic or Paid? YELLOW7, Inc. Breaks Down the Best Way to Tackle Search
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Organic or Paid? YELLOW7, Inc. Breaks Down the Best Way to Tackle Search

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Diversity has proven be a contributing factor of success in most areas of business, and its no surprise to hear that its immensely important in terms of online search. Why put all your eggs in one......

Diversity has proven be a contributing factor of success in most areas of business, and its no surprise to hear that its immensely important in terms of online search. Why put all your eggs in one basket? YELLOW7 has shown plenty of clients the benefits of utilizing both organic SEO and PPC campaigns together for the best result possible.

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  • 1. white paper yellowseven Organic SEO or PPC? BOTH! Most, if not all, businesses will eventually have to ask themselves the question: “Should I invest in an Organic Search Engine Optimization (SEO) strategy or in Pay-Per-Click (PPC) advertis- ing?” How do you know which one will provide the best Return on Investment (R.O.I.)? The short answer: Both! Purchasing “clicks” is known as PPC advertising. With PPC advertising you bid (pay) for key- words on the various search engines ( usually Google and Yahoo! ) and when that keyword is searched, and depending on your bid amount, your advertisement is served up for the searcher to see, and hopefully, click. You are competing with other advertisers for the same keywords and depending on your bid amount compared to your competition determines who’s ad shows up first. Organic or Natural SEO consists of optimizing your website pages to make your site more relevant for a given keyword or set of keywords so that the website shows up within the organic/natural/non-paid listing area. Organic SEO is the process of making sure the search engine spiders can crawl and understand your website pages. Organic SEO gets the spider to not only understand it, but like it more than the other website pages with the same or similar content. PPC is a strategy to employ when you need to ring the cash register fast. “He who pays the most wins!” Organic SEO is a more long-term strategy. A strategy that paints with a broader brush and allows you to target a larger set of keywords than most PPC budgets would support. Who clicks where? On Google, 72% surveyed felt organic results were more relevant, with only 28% preferring paid listings for search results. In addition, conversion rates are 72%Click slightly higher for unpaid search results than the rate for paid ( 4.2% vs. 3.6% ). With 30% of search engine Organic Listings 28% Click users clicking on paid listings, that leaves 70% who are Paid clicking on the organic or natural search engine Listings listing results. www.yellow7.com | 972-731-6720
  • 2. white paper yellowseven cont. Using the knowledge that 72% of searchers click the organic listings and 28% click the paid list- ings, you can develop an online marketing strategy that encompasses both advertising oppor- tunities. Failure to adopt either PPC or SEO means you are leaving a substantial amount of traffic on the table for your competition. Below are some real-world, actual client case studies showing their traffic breakdowns by PPC and Natural SEO. Case Study #1 Client: Major RV Dealership with national reach Advertising Strategy: PPC, SEO, Traditional Monthly Traffic: 84,000 Visits Average Time on Site: 7:42 91% Visits from Organic Listing Average Pages per Visit: 7.81 Traffic Breakdown 63% Search Engine 20% Direct Traffic 16% Referring Sites Total Traffic from Search Engines: 53,137 Traffic from organic listings: 48,473 (91%) 9% Traffic from PPC with $5000 monthly budget: 4,664 (9%) Visits from Paid Listing Case Study #2 Client: Plastic Surgeon with local reach only Advertising Strategy: PPC, SEO, Traditional Monthly Traffic: 6,400 Visits Average Time on Site: 4:27 Average Pages per Visit: 4.28 63% Visits from Organic Listing Traffic Breakdown 44% Search Engine 11% Direct Traffic 37% Visits from 45% Referring Sites Paid Listing Total Traffic from Search Engines: 2,881 Traffic from organic listings: 1,794 (63%) Traffic from PPC with $7000 monthly budget: 1,087 (37%) www.yellow7.com | 972-731-6720
  • 3. white paper yellowseven cont. As with any marketing strategy, there are pros and cons associated with each. Below are the advantages and disadvantages of both PPC and SEO marketing strategies. Use the informa- tion to decide for yourself. ADVANTAGES OF PPC DISADVANTAGES OF PPC Immediate results - Need to get the cash Conversions are lower - Data provided register ringing right away? You can setup a by Google suggests conversions are slightly PPC account and get site visitors by the end higher for unpaid search results than for paid of the day. (4.2% vs. 3.6%). Easy to calculate R.O.I. - You can quickly Less visits per keyword - Roughly 30% calculate daily R.O.I. How much did you sell of search engine visitors click PPC listings, today? vs. How much did you spend today? leaving 70% clicking organic results. Keyword testing for SEO - With PPC Budget limitations - Paying for traffic as a you can test specific keywords and get real- sole marketing strategy means traffic comes time data on your best performing keywords quickly and can leave quickly once a budget is giving you a roadmap illustrating the best exhausted. Daily budgets are exceeded, in keywords to target with SEO. most cases, long before daily searches. ADVANTAGES OF SEO DISADVANTAGES OF SEO Increased searches - 70% of search Slower results - Unlike PPC, SEO takes a engine visitors use the organic listings when more long-term commitment. Natural rank- searching for goods and services. ings take time to prove their worth within the search engines for a given keyword(s). Target more keywords - With SEO you can target an expanded set of keywords Algorithm changes - Search engines which are not tied directly to daily budgets routinely change the algorithm used to deter- like PPC campaigns are. mine how sites should rank. A good SEO com- pany can identify these changes and adjust Long-term marketing presence - As efforts accordingly. you build up popularity for a given keyword, your rank within the search engines for that Customer expectations - SEO is a long- keyword(s) improves giving you “more bang term commitment. As a SEO client you must for your buck” for as long as you are listed in have realistic expectations and realize you are that position. Comparing this keyword to the investing present day dollars for future gains - cost per click associated with it in PPC adver- Gains which have proven to exceed PPC R.O.I. tising gives you a clear R.O.I. picture. over time. www.yellow7.com | 972-731-6720
  • 4. white paper yellowseven cont. How do you calculate the value of organic search traffic? Organic search traffic accounts for anywhere between 65% and 80% of all search traffic to a website. Yet, most online marketing budgets allocate less than 15% to SEO giving PPC, which receives 15% - 30% of all search traffic, 80%+ of online marketing budgets. Showing up in the organic listings for a given set of keywords can boost traffic dramatically. The below chart illustrates the cost-per-click for SEO compared to PPC for the case studies previously discussed. Case Study #1 Case Study #2 PPC Monthly Budget SEO Monthly Budget PPC Monthly Budget SEO Monthly Budget $5000 $5000 $7000 $3000 Visitors = 4,664 Visitors = 53,137 Visitors = 4,664 Visitors = 1,794 Cost Per Visitor Cost Per Visitor Cost Per Visitor Cost Per Visitor $1.07 $0.09 $6.43 $1.67 If SEO is so great, why even recommend PPC? Simple. PPC is immediate and results in targeted clicks. PPC traffic flows as long as you have the budget to support it. Even though most traffic flows from organic listings, it would be foolish to completely ignore the 15% - 30% of search engine traffic that follows paid listings. This PPC traffic is usually ‘on-target’. The only way they found your site is by first searching for the specific keyword or keyword phrase you bought with PPC. For example, if the search is for “Used Motorhome For Sale” you have a pretty good indi- cation the person is indeed looking for a used motorhome for sale. Best of both worlds. By developing an online strategy that utilizes both organic SEO and PPC you can take advan- tage of short-term conversions while building long-term search engine saturations that will pay out dividends long into the future - decreasing your cost-per-visit and increasing R.O.I. www.yellow7.com | 972-731-6720