paid search is still being used by many big advertisers' but over time they should shift their dollars to SEO (search engine optimization) to deliver longer lasting impact and lower overall cost for clicks.
Optimizing SearchReturns Dr. Augustine Fou http://www.linkedin.com/in/augustinefou July 20, 2012.
Advertisers getting more savvy Look for ways to optimize organically, to reduce paid costJuly 20, 2012 2
Search – Paid vs Organic Shift allocation to organic to get lower cost per clickJuly 20, 2012 3
Focus on longer search terms • Users are searching longer terms • Users click more on ads related to longer terms Source: Chitika, June 2010 Source: Chitika, Jan 2012July 18, 2012 4
Users click on natural results Most users click on natural search results 15-25% of clicks Natural results 1-9% avg CTRs have 10x the click through rate of paid ads 75-85% of clicks 13-21% avg CTRs Source: go-Digital Blog, July 2012
Users are very savvy The more specific the search (longer query length, in # of words) the higher the click through rate (CTR) on first search result. Source: Just Search, May 2010
Optimizing Search Paid/ SEM Organic For long tail, For brand terms descriptive and expensive keywords keywords CTR 1 - 5% 13 - 21% CPC $1 - $10 FREE Source: SlingShot SEO Shift allocation to get more clicks at lower costJuly 18, 2012 7
So What? “As users get more savvy in their search and as advertisers get more savvy and focused on returns, search investment should shift from paid search to organic optimization, which also leads to longer term payoff.” - Dr. Augustine FouApril 25, 2012 8
Dr. Augustine Fou – Chief Digital Strategist “I advise clients on benchmarking and then optimizing their digital marketing activities, with a focus on search optimization.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT 95) AT AGE 23 ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefouJuly 20, 2012 9 firstname.lastname@example.org
Search – Paid vs Organic • 90% of users click on organic side • Cost per click on SEO is under • Less than 10% click on paid ads $0.10 per click • CPC on paid side is more than 7x higher, greater than $0.60 per click http://blog.triphp.com/marketing/organic-vs-ppc-search-engine-marketing.html Feb 2009July 20, 2012 11
Search – Paid vs Organic “After you determine the right keywords, you can start using theses keywords for your SEO optimization efforts.” Source; http://ispionage.info/why-it-is-important-to-use-ppc-to-help- you-in-your-seo-efforts.htmlJuly 20, 2012 12
Advertisers still overspendon paid search ads 89% of ad dollars spent on paid 89% of clicks come from search SEO/organic search Source: http://www.torontoseofirm.com/ppc-vs-seo-payoff/ Feb 2010July 20, 2012 13