10 Reasons to Fight Keyword Inflation

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Spending on online advertising sees strong growth, according to a new report from market analysis firm JupiterResearch — expanding by almost 20 percent in 2008 to reach $23.8 billion. kidd_keywordinflationAccording to the report, 8.4 percent of advertising budgets in 2007 were spent online — a figure expected to reach 14.3 percent by 2013, a growth that attests to the increasing shift of dollars away from traditional media.

Paid search continues to represent the largest category of online spend, and is expected to grow to $20.9 billion in 2013.With that said, the cost per acquisition (CPA) continues to grow exponentially making it nearly out of reach for a small operator to compete against the bigger brands with sizeable advertising budgets.

How then does one compete in a recessionary climate, when the commodity of keywords is just as inflationary as the price of oil?

Here are 10 reasons to start changing your strategy:

10. Consider “long tail keywords.” They are cheaper and can draw more qualified buyers to your site.

9. Save dollars with “Dayparting,” by checking the effectiveness of your campaign at different hours of the day.

8. Why pay for membership to the GYM (Google, Yahoo, MSN), when you can exercise your keywords 24/7 at an SEO park.

7. When a paid search budget runs out, advertisers lose their presence all together on the Search Engines, where SEO continues to move you up in the rankings.

6. Geo-target your campaign with LOCAL SEARCH, and right now Google isn’t charging for it.

5. Diversify. There are search engines other than Google that charge less.

4. Studies indicate that 60 percent of searches click on organic results versus paid placements

3. Ad blockers are available now which not only block pop-ups and banners, but paid search as well.

2. Organic search has the perception of “implied endorsement.” Sponsored listings imply commercialism. In the world of Web 2.0, the customers like to be in control.

1. It’s okay not to be in the Number 1 spot on Google. Rankings above the fold bring in substantial ROI, just as well!

 
Ron Callari is the Chief Marketing Officer of iOptimize Marketing, an Internet marketing firm, and a freelance journalist and editorial cartoonist whose work has appeared in Alternet, Counterpunch, Sacramento News & Review, Albion Monitor and the World and I. He is author of “Uncle Dubya’s Jihad Jamboree”, published in 2005, and the creator of kidd millennium’s editorial cartoons, www.kiddmillennium.com

 

 

 

 

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2 Responses to 10 Reasons to Fight Keyword Inflation

  1. [...] – bookmarked by 6 members originally found by Timoyer on 2008-09-12 10 Reasons to Fight Keyword Inflation http://kiddmillennium.wordpress.com/2008/07/11/10-reasons-to-fight-keyword-inflation/ – bookmarked [...]

  2. Chris Regan says:

    Above you mentioned:
    4. Studies indicate that 60 percent of searches click on organic results versus paid placements.

    “Industry Leader”, Stuart Small, has stated that Google sees 80% of searchers clicking on organic (SEO) results, with 20% clicking on search ads. Enquisite’s President, Richard Zwicky, states that organics deliver 5.6 higher conversion vs. PPCs. So, doing the math, SEO is quite a better investment.

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