Table of o f Contents Conte nts The Shift from Traditional to Online ...............................2 Shopping Domino Effect ...............................................3 Saying Goodbye to Old Ways........................................4 3 Reasons Compan ies Make the Shift .................... .......5 Search Marke ting ROI Case Study .................. ..............7 Final Thoughts ..............................................................8
1
The Shift from Traditional to Online Search Marketing If someone gave you $2 for a dollar bill, would you do it? Probably every time, right? How about $25? If someone told you they’d give you $25 for just a dollar bill, you wouldn’t believe them. In the end, that’s why more people are making the shift to search marketing, because the return on investment is really that big. big.
expensive, traditional advertising methods with ambiguous results for online marketing, which can be tracked, dissected, measured and analyzed much more efficiently.
Return on Investment judgeyears of every endeavor.to The economic troublesisinthe recent havemarketing forced companies closely observe every move, to count every penny, and to make sure each spent marketing dollar brings more dollars back, or in other words, delivers a big return on investment (ROI).
leftover crumbs of the marketing budget.
As a resu result, lt, marke ters have beco become me mo re s selec elective tive in c choos hoosing ing measurable strategies that prove ROI. Many have forgone
There has been a noticeable shift in marketing strategies and marketing spend. Online search marketing is becoming the go-to, primary strategy while traditional advertising is now getting the
This whitepaper will include third-party statistics from SEMPO, eMarketer and Forrester, as well as SEO.com’s own observations, which detail trends and paint a clear picture of this shift in marketing. At the end, more than 80 of SEO.com clients are used as a case study for showing the ROI of search marketing.
Measuring the ROI (Return On Investment) is the number one challenge marketers are facing this year.
SE MPO s Stat e of Sea Search rch E ngin e Market Ma rket ing, 201 2010 0
2
Shopping Domino Effect
US Search Engine Marketing Spending (SEO, PPC, etc.) $25,000
There are 14 billion online searches every month, and eMarketer claims more than 74% of U.S. households will have Internet access in 2010. With that number rising every year globally, millions more are shopping from their home through a computer screen.
$23,380
$18,102
$18,000
Shopping online seems commonplace today, but it’s really just in its infancy. Giant eCommerce sites like Amazon.com are now household brands that seem to have been around forever.
$14,110
$12,000
2008
2009
2010
2011
2012
2013
For a dose of perspective, Amazon.com first launched its website in 1995 – only 15 years ago – and an d no w earns ea rns an a annua nnua l re revenu venu e of more than $24 billion. Marketers are paying attention.
Source: www.eMarketer.com, February 2009
US B2B Media Spending, 2005 - 2010 (Millions, % increase over prior year and share %)
2 00 5
20 0 6
2 0 07
2 00 8
20 0 9
2 0 10
Total Spending*
$2 2 , 28 5
$ 2 3 ,6 8 8
$ 2 5, 1 31
$2 6 , 74 0
$ 2 8 ,3 5 8
$ 3 0, 1 72
Online Ad Spending
$1 , 53 7
$ 1 ,9 5 1
$ 2, 4 31
$2 , 91 2
$ 3 ,4 1 0
$ 3, 9 39
Online Ad Spending Growth
2 4 . 9%
2 6 .9 %
2 3. 7 %
2 0 . 7%
1 7 .1 %
1 5. 5 %
6 . 9%
8 .2 %
9. 6 %
1 0 . 9%
1 2 .0 %
1 3. 1 %
Online Ad Spending % of Total
Forrester Research said marketers will spend $26 billion in 2010 in search and online marketing, which rivals all spending on cable/satellite cable/satellite TV and radio. And almost half of all marketers plan to increase online ad spending by decreasing spending in other channels.
9% Companies SEO Spending in 2010*
Note: *includes B2B magazine, trade shows and exhibitions, online advertising and online content & communities. Source: Veronis Suhler Stevenson, PQ Media, AdScope, Agricom, American Business media, BPA International, Center for Exhibition Research, IMS/TheAuditor, PERQ, SRDS, TNS Media Intelligence/CMR, Tradeshow Week, September 2006; eMarketer calculations, November 2006
Expect to spend more on SEO
%
39 %
52
Expect to spend about the same Expect to spend less
* Source: State of Search Engine Marketing Report 2010 in association with SEMPO
3
Companies Saying Goodbye to Old Ways With so many plugged in and a shopping online for almost every product and service, marketers have responded by pushing more of their budgets online and away from traditional strategies. Print advertising has seemed to take the hardest hit, and direct mail being a close second.
% of Companies shifting money from traditional marketing to SEO*
49 %
Print Advertising
36 %
Direct Mail
Conferences & Exhibits
24 %
%
11
8%
Yellow Page Ads
21 % 18 %
%
20
17 %
TV Ads
Radio Ads
Average Company Budget for SEO* Up to $75,000 $75,000 - $250,000 $250,000 - $3 million
4
61
%
Will spend nothing on SEO * Source: State of Search Engine Marketing Report 2010 in association with SEMPO