Paid Search not the way to go! - says eMarketer

"Paid search spending is up more than 40%, overshadowing all other forms of Internet advertising and marketing. Yet if you take a close look at the actions and attitudes of search users the people who monetize search with their clicks you may find that paid search ads are not the most effective way for you to advertise online."

This research study comes to a conclusion that we have seen echoed in many other studies that we have viewed on line and presented in Internet Marketing class.

We have seen information showing different demographic profiles for the major search engines that can be useful to marketers who are targeting particular markets.

Studies have indicated that trust in a web site or vendor can be a more important factor in a buying decision than price.

Searchers prefer natural listings over sponsored listings by a rate of 60-70% (although other studies have indicated that most searchers don't know the difference!) Different studies have shown us that searchers tend to see what is presented on the upper left side of the page more than any other page content. This finding could have something to do with the preference for natural listings, since sponsored ads tend to be placed on the right.

People more and more use the Internet to research purchases they are considering, sometimes far in advance of the actual purchase. In addition, many of those purchases occur "off-line", that is, the buyer will go to a store to complete the purchase after they have done the research on the Internet. It takes good marketing on your site to make these people convert on-line, where the site owner will get the direct benefit!

The lesson is that marketing on the Internet is a complex business that requires persistence and attention to detail in order to succeed. There is still no free lunch!

The Spamming Of Web Search

"A byproduct of search-engine optimization is low-value Web content that's filled with keywords targeted at search engines, not people."

This article is talking about what we as Internet marketers work on every day. It is a threat to the business, and it is real.

I had a personal experience just a day or two before reading this that makes it resonate with me.

My Mother lives in a different city, and has arthritis and back problems. She likes to work on her computer, but can't now because of the pain. I suggested she get an ergonomic chair instead of using the straight-back chairs that she uses now, but she needs to try the chair before buying it, because it may not work for her. These chairs are not cheap (for a good one!)

I thought it would be easy to find a store near her. I would just go to Google and search for "ergonomic chairs hometown" (where she lives). I got lots of results, but after much searching on that and other terms, and on different search engines, I found nothing!

There were lots of results for the search. I found a highly promoted site that sells the chairs, and listed a product with the name of her home town in the name, and I found many hotels in the area touting the availability of ergonomic chairs in their rooms (which surprised me!) I could not find the one thing I wanted, even though I have no doubt that there are office and furniture stores near her that feature these products.

I have seen much talk about local search being the coming thing, and I can see the need for it in this experience.

More American Women Than Men Go Online

" More women than men surf the Net.
That's a conclusion of online marketing firm eMarketer Inc., which issued study results Thursday saying that girls and women represented 51.6% of Americans online last year. While females make up about 51% of the U.S. population, and that ratio is expected to hold in the coming years, the proportion of girls and women on the Web should grow to 52.6% by 2008, according to eMarketer.
That's a big change from the early days of the Internet, when males dominated. As recent as 1997, boys and men made up three-quarters of Internet users. "

Another indicator of the continuing evolution of the internet! The likely immediate impact of this particular shift in the population on the 'net is a coming change in the way shopping sites have to work. This article predicts that "offering a page of thumbnail images of blouses" will longer be sufficient to capture the consumer dollar. Instead, "retailers must use the power of the Internet to build customized shopping experiences tailored to a woman's browsing or previous buying patterns."

For small business marketeers, this means paying more attention to how you design your site. The simple, mechanical approach of throwing all your product up on line is not going to continue to work for you. You will have to be more creative to remain competitive!

Continuing march of the Internet!

Excerpts from the article:

"... The internet is working wonders in raising standards. Good and honest firms should benefit most...."

".. But it is also intensifying competition. Today, window shopping takes place online. People can compare products, prices and reputations. They can read what companies say about products in far greater detail, but also how that tallies with the opinions of others, and most importantly of all discover what previous buyers have to say. Newsgroups and websites constantly review products and services..."
"... Ford is finding that eight out of ten of its customers have already used the internet to decide what car they want to buy—and what they are willing to pay—even before they arrive at a showroom..."

"... Many people now spend as much time surfing the web as they do with television, magazines or newspapers..."

"... It is true that the vast majority of people still go to shops for most purchases (though online sales continue to grow). Before doing that, however, most have used the internet. More than 90% of people aged between 18 and 54 told America's Online Publishers Association in a survey that they would turn to the internet first for product information..."

"... And soon this facility will be available not just on PCs at home or work, but on mobile phones. At a touch, consumers will be able to find a local store and then check the offers from nearby outlets even as they browse the aisles, or listen to a salesman..."

A new article in the current issue of The Economist re-emphasizes for us the importance of the Internet to business, and takes a look ahead at now much more important it will continue to become as technology advances. The information in this article resonates with that I covered in our last class pointing out how many people research products on the Internet for extended periods of time before actually closing a sale, and how many of those sales take place off-line, where they don't show up in eCommerce statistics! In other words, the growth we are seeing in Internet sales, which is remarkable, actually understates the significance of the Internet experience for business!