In the previous Session we looked at Custom Modules. In this section we will look at Why Search Engines are important.
Download a PDF version of this lesson (101k) Why are Search Engines Important. This lesson is a sample from the manual.
Why are search engines so important?
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“United Kingdom Online adspend grows 62%
Online advertising has established itself as a major advertising medium with the publication of the industry’s tracking research by the IAB and PriceWaterhouseCoopers. In the first half of 2005, online advertising took a 5.8% share of all UK based adspend … |
And with a total adspend of £490.8m; online advertising has come of age as it continues to be the fastest growing advertising medium in history.
…eclipsing outdoor at 5.1% and radio at 3.6%
Display advertising: 33%
Paid search listings: 40.2%
Classifieds: 26.8%”
http://www.iabuk.net/knowledgebank/introductionto/iabpwcadspendstudy-factsheet-h12005.doc
“Google and Yahoo dominate the booming online search advertising business, which is expected to grow to US $5.6 billion in 2008, from US $2.7 billion in 2004.
“..[In Australia Google] will control an estimated 70-80 per cent of this year's $120 million paid search advertising market.” SMH 11 May 2006, [http://www.smh.com.au/articles/2006/05/10/1146940617345.html]
"Old media lose out as advertisers go online"
"MORE than 8 per cent, and rising, of the $11.903 billion advertising market is now spent on the internet, up from just 5 per cent a year ago.
Internet advertising stole market share from classified directories, newspapers and free-to-air television last year, according to figures for 2006 just released by the Commercial Economic Advisory Service of Australia. ...
... indicated large advertisers expected to continue outspending the market, with 22 per cent of their budget set to go online.
Research firm Frost & Sullivan predicts the internet, which is already the third biggest medium (excluding directories), will grow at close to 30 per cent a year to almost $3 billion by 2010. ..." The Australian 9 April 2007.
[http://www.theaustralian.news.com.au/story/0,20867,21523885-7582,00.html]
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Search still most efficient by far at acquiring customers.
At an average cost per acquisition:
| Search |
$8.50
|
| Yellow Pages |
$20.00
|
| On-line display |
$50.00
|
| Email |
$60.00
|
| Direct Mail |
$70.00
|
[http://www.internetretailer.com/dailyNews.asp?id=20330] 26 October 2006
Lessons:
- Paid search is growing because it is highly effective relative to the cost.
Small business owners need to take note of this.
- Advertising revenue is no longer the exclusive preserve of the mass media. You don’t need to own a newspaper, a TV station or radio network to participate. Google and Yahoo have brought participation in this market to the masses. A modest investment in a website is all that is required.
Great news for small business and clubs to use as fund raisers.
- Paid Search is important, but it is not the only on-line game in town.
- Paid search (PPC) can be cost effective for small business.
- Google and Yahoo are currently the biggest players in global search but are not the only players in the market. E.g.
- The 5 Most Advanced Search Engines On The Web
- Similar patterns are emerging in many countries around the world. These lessons work for small business in most countries.
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