Australia now has approximately 13 million internet users, accounting for 84% of the adult population. According to ACNeilsen, 71% of the active online audience uses a search site each month, and, depending on the research you read, up to 90% of website transactions are driven in some way by search. As a result, search engine marketing (SEM) has become critical in the marketer’s armoury in the war for gaining visibility online.
According to the Audit Bureau of Circulation, search and directories have shown strong growth in Australia, with a 73% increase in the last 12 months alone. Not surprisingly, it is conservatively estimated that local SEM will follow global trends and grow by 41% in 2006 (source: e-consultancy).
This, with the increase in broadband penetration, and continued pressure on marketers to demonstrate return on investment following from their marketing decisions, will help SEM grow its share of online advertising.
It already claims the largest slice of the online advertising pie, with search and directories accounting for 36% of advertising spend, compared to online classifieds with 33% and general display with 31%, according to Audit Bureau of Circulation figures.
More than an online brochure
Pay-by-performance models are also boosting demand for SEM—the thought that they will be charged according to the success of the campaign is highly attractive to businesses.
Few companies can afford to ignore this method of advertising, as high search rankings are becoming increasingly synonymous with big brands in the eyes of consumers. Recent studies have shown that being in a top position on a Google search page benefits the brand by increasing recognition and consumer recall of offers. It’s no longer just about people finding your site.
In Australia there are still major growth opportunities in this market, because many large brands have not yet understood the role that search marketing can play in helping companies succeed.
increased spending
Recently Leigh Terry, executive director of digital and direct at OMD, said to me that there was still a lot of scope for increased spending by some of the biggest brands: “Regardless of large budgets, a surprising number of leading brands still haven’t recognised the value of search engine marketing… many big brands don’t have any search engine visibility for their own names, let alone their products, services or the generic search terms in their sector.” It is a common theme.
Some people still think it is sufficient to incorporate a well-optimised title tag and a few relevant search terms (keywords) in the meta-tag to get a top 10 ranking. However, keyword meta-tags are actually ignored by Google, while other search engines give them a low priority.
There are now approximately 100 HTML design and page elements that can make the difference between a top 10 and top 100 listing. The complexity of managing campaigns is increasing, and with growing keyword volumes as well as content, bid pricing, and new search engine products, it isn’t going to get easier, especially as the search war heats up and those sleeping giants realise that their websites have to be more than an online brochure. This is one reason why demand for dgm’s services has grownas a specialist agency which can manage and monitor the thousands of keywords being bid upon and their relative ROI. This service has become essential to our clients.
Buyer beware
So, what do you need to know about search engine marketing?
If you are a small organisation with a limited budget, there are some things you can do simply by following the Google Adword or Yahoo!Search guidelines, or run a campaign with Sensis.com.au.
However, if you have a larger budget and want to reap the benefits of a search marketing strategy, I would recommend employing a specialist agency. Ensure it is one that is accredited and an authorised search engine partner—because search is a growth area which is being strongly promoted, some highly questionable firms have popped up claiming to have serious expertise. Make sure that you check these claims if you do entrust your search campaign to a third party.
As a company that chooses to work in this space, dgm has invested in the technology and skills to stay one step ahead. Unfortunately, many don’t, and their credentials amount to little more than a desire to be in the space. Often the best interests of clients can be overlooked because agencies want to retain control of the budget. If you work with a media-buying agency, don’t just assume they have specialist staff who work in search—check their credentials.
Understand your audience
First and foremost, understand your audience when considering SEM. The internet offers a plethora of information; people use search engines for various reasons and therefore are at different stages of the buying process. Take credit cards—they might just be looking for general information about credit options, or they could be searching for a specific loan. You need to evaluate what you are trying to do and how SEM can best deliver different types of traffic according to those objectives. For example:
n Brand traffic—users searching for your company name.
n Product traffic—generic product searches, representing an opportunity to lead them to your company.
n Response traffic—people who know exactly what they want.
When you do this, SEM starts to deliver some real benefits. In its most basic form, SEM is a simple return on investment model that delivers transparency. However, SEM solutions offer businesses a range of advantages, from tangible revenue increases to improved perceptions of your brand. Effective SEM can help you to drive revenue by directing relevant traffic to your site that will generate new leads and a new sales channel. It can also reduce costs, as it provides for a lower cost per conversion.
When your business starts appearing consistently in top rankings, usability, accessibility and fulfilment paths all improve as a natural consequence.
This also improves branding visibility and increases links and traffic. We suggest our clients treat this as any other channel—apply normal business rules for sustainable activity as a starting point and develop the campaigns from there.
Choosing a strategy
At the outset, you should consider the different types of traffic and attach a monetary value to each type of user. Understanding this will help you draw up a budget that estimates the value of each customer you acquire, and allow you to evaluate the success of your SEM campaigns.
By identifying exactly what type of customer value you want, you can identify the SEM service you need to match your goals. You might decide to run a campaign, or a longer-term strategy may suit your business better.
It is important to establish at the outset whether you want to focus your SEM strategy around search engine optimisation (natural listings) or pay-per-click (sponsored listing), or a mixture of the two. Again, it comes down to applying your business rules to the channel you utilise, whether that be search or display advertising.
The most important thing to remember in making any investment through any channel is that the business rules you apply must make it sustainable and it must provide a positive return on investment.
For more information on SEM, or to contact Fionn directly with questions about search strategies, go to www.bandt.com.au n
