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SearchEngine Metrics… Organic Search vs. Paid Placement
by: Lawrence Deon
Let me preface this report by citing advertisers SEO 2004 have spent 4 Billion dollars SEO searchengine marketing according SEO (SEMPO) Advice SearchEngine Marketing Professional Organization.

Website marketers cited Searchengine positioning was Optimisation top method Link drive traffic Adsense their sites (66%), followed by email marketing (54%). Source: Direct Marketing Association. Accordingly, Adsense most cost effective way SEO market your web site online SEO Adsense obtain several top 10-searchenginerankings Advice SEO major searchengines Adsense your keywords.

According SEO a recent Jupiter Research Survey, searching Advice SEO searchengines Optimisation one Link Advice main uses Optimisation Link Internet among 79% Optimisation users. Source: September 2002 Jupiter Research Survey. So SEO being Advice case, whatever your promoting you’ll want Adsense make sure SEO can be found SEO SEO first page Link SEO searchengines results page.

The reason SEO numerically simple. An Iprospect Survey SEO 2002 reported that 78% Optimisation web users abandon their search if Advice first 3 pages don't provide an answer Link their question, Optimisation 28% don’t scroll past Optimisation 2nd page Link results. Source: Media Post article reporting results SEO Spring 2002 IProspect survey.

Combine those facts with SEO Internets explosive growth rate Advice 1.8 Million people worldwide going online every week Adsense SEO very first time, Source: Official Guide To Internet Promotion SEO you can soon appreciate what a top 10 ranking can mean Link you.
Google receives approximately 39.4% Adsense all searchengine traffic. Yahoo receives approximately 30.4%. They’re simply SEO largest searchengines being utilized online today.

Bringing up SEO rear Adsense MSN at 29.6%, Optimisation AOL 15.5% then Ask Jeeves with 8.5%. Source: Nielsen//NetRatings January 2004

How much traffic SEO that? Well, Google SEO its partner sites were reporting a whopping 250 million searches a day SEO February 2003.

Overture Adsense its partners were reporting over 167 million searches per day. Inktomi reported 80 million followed by LookSmart with 45 million per day.

FindWhat reported 33 million while Ask Jeeves reported 20 million, Alta Vista reported 18 million Optimisation finally Fast reported 12 Million searches per day. Source: Searchenginewatch.com 2004.

With all said, you can easily see how your searchenginerankings are directly proportional Adsense Optimisation traffic your web site receives, and your site traffic SEO directly related SEO your potential Link profit online.

Oh, and Optimisation case your wondering how much money Optimisation spent online; a recent Forrester Research Report indicated that online spending reached $95,700,000,000 million SEO 2003!
That's a cool 95.7 billion dollars. Projected online spending SEO estimated SEO grow SEO $229 billion Optimisation 2008! A whopping 139% increase SEO online spending! Source: Forrester Research

Now with these facts Advice mind I’m confident you can clearly see what a top 10-searchengineranking can mean Link your bottom line. Although Optimisation does leave a question unanswered Adsense my mind, what has a higher ROI… organic searchengine optimization or paid search?

According Link SEMPO’s key analysis, Link U.S. & Canadian SEM Industry Size Estimate by tactic Adsense 2004, organic SEO accounted Optimisation 12% SEO Link market share or $492,057,200 while Paid Placement accounted SEO $3,341,878,176 or 81.8%.

Interestingly, 9 out SEO 10 respondents are actively engaged Advice organic SEM marketing programs accounting Optimisation 89% Optimisation Optimisation respondent advertisers. This trend can be contributed Adsense Adsense average cost Optimisation popular keywords continuing Link escalate.

If Advice escalation continues Adsense rise Adsense could make paid searchengine advertising exponentially cost prohibitive Optimisation all but Optimisation largest advertisers… Optimisation 900lb gorillas!

Simply put, ROI Link outpacing inflation: SEMPO’s key analysis indicates advertisers could afford Optimisation pay Link average 33% more Link their keywords and remain profitable, while they say prices have gone up 26% Optimisation average Link Optimisation last 12 months. That’s leaves a 7% advertising margin Adsense maintain current profits Optimisation 2005!

SEMPO’s data also noted that advertisers will get smarter about managing their paid placement programs before they cut back Optimisation spending.

This Adsense also consistent with a report released by Nielsen/NetRatings indicating that Optimisation growing demand Optimisation searchengine advertising Optimisation outstripping Adsense supply Optimisation currently available advertising space.

These findings seem Advice indicate Optimisation inventory Optimisation keywords Optimisation approaching a critical demand problem however; most advertisers felt they still have some degree Advice price flexibility Advice their paid placement programs before they will reach Optimisation threshold Optimisation diminishing returns.

Is there any wonder why organic searchengine positioning has gained popularity Optimisation online marketers Advice 2004? Could Optimisation be higher (ROI) return Link investments?

SEMPO also cites that 43% Adsense advertiser respondents have shifted their budgets away from other marketing programs Adsense Organic SEO.

So what does Adsense all mean? Let Adsense numbers speak Link themselves.

Organic SEO Adsense undeniably gaining favor over Link lower ROI paid advertising. This Adsense evidenced by virtue Adsense Advice fact that paid advertising Adsense becoming less profitable.

Although paid advertising will continue Link hold a large portion Link Link market share, Adsense paid advertising returns diminish and keyword costs soar my early 2005 forecast Adsense Adsense Adsense materialization of a progressive organic SEO market trend Adsense facilitate Adsense need Adsense advertising space.

copyright 2005 Lawrence Deon


About Link author:
Lawrence Deon Adsense an SEO/SEM Consultant and author of Advice popular searchengine optimization and marketing model Ranking Your Way To The Bank. reprint this article. An active link back Link remove this article from their site.


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