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SEARCH ENGINE MARKETING [SEM] - A STRONG ADVERTISING MEDIUM
Search Engine Marketing (SEM) is fast becoming the most disruptive advertising medium.
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In 2005, it is estimated to have generated $10 billion worldwide – 40 per cent of the total online advertising market. Google had 64 per cent of that market last year. It is expected to grow 41 per cent in 2006, according to a report by US-based securities firm Piper Jaffray.
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In India, of the $35-million online advertising market, search engine marketing is estimated at $5 million – 6 million. Most of it is attributed to global advertisers reaching out to Indian users. “Only 10-20 per cent of this is Indian advertisers reaching out to Indian consumers.” This market is expected to double by end-2006.
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According to an industry report, 32 per cent of all products purchased online were after search queries.
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Sharekhan.com has, in fact, increased its search budget 20 times in the past year.
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Over 25-30 per cent of the queries generated are commercially-saleable keywords.
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20 per cent of users querying ‘commercially-saleable keywords’ actually click on the sponsored links (that’s when the search engines gets a percentage fee).
THEN WHY SEARCH ENGINE OPTIMIZATION [SEO]?
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Search has another dimension: SEARCH ENGINE OPTIMIZATION [SEO]
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Many companies use Web analytics to crack Google’s algorithm, so that their website is part of the organic results on Google’s coveted first page.
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Companies prefer using SEO to SEM.
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It is cheaper to come on the list and more effective because users are more likely to click on organic results than the sponsored links.
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In the US, SEO constituted 12 per cent of the search industry in 2004, according to a non-profit SEM association.
WHY OUTSOURCING SEARCH ENGINE OPTIMIZATION [SEO]?
To keep costs low and getting the same quality at work, companies are now outsourcing SEO work to small and growing SEO companies in the developing world. And, India is becoming a reliable outsourcing centre for it.
SEARCH ENGINES - DATABASE OF INTENTIONS
Every search query, fed in by one of the hundreds of millions of people worldwide who use search engines like Google, Yahoo!, AOL, MSN for everything they do, gives us a glimpse into what users are curious to know or find interesting. When all those billions of queries are aggregated, what you get is a goldmine of intelligence into the deepest desires of mankind. And such a ‘database of intentions’ would be useful for innumerable reasons – for just about anybody. For marketers. For politicians etc.
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In the past year, the number of web pages indexed by popular search engines has doubled to 18 billion.
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By turning one of mankind’s innermost desires – the search for information – into a marketing platform, search has become the hottest business online. For eg. World’s most popular search engine, Google.
Organic SEO Vs. Sponsored Results [SEM]
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