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Return on Investment in Search Marketing

By Ken Wisnefski, Webimax.com

With every marketing firm in the business offering web solutions and search marketing campaigns, a surprisingly low amount of companies know how to calculate their Return on Investment.

These days, it can seem like no one knows how to make money on the internet. With every marketing firm in the business offering web solutions and search marketing campaigns, a surprisingly low amount of companies know how to calculate their Return on Investment. Before you start throwing your money down the bottomless pit, isn't it high time you learned how to tell who has the goods and who just has a good sales pitch?

Internet marketing is no longer a clandestine little marketing secret. According to research firm eMarketer, internet marketers spent $24.5 billion this year, up 4.5% from 2008. As the fastest growing advertising vehicle ever, the internet provides proven strategies, like banner advertising and social media, for established brands looking to put their stores and showrooms at their customers' fingertips. But what about smaller businesses?

The answer is in the search bar. All search engine visitors are looking for something - a product, a recommendation, a service - and it is your job to get them from their search term to your website. There are two proven ways to go about this.

Pay-Per-Click advertising allows you to pay for your link to reach the top of the results list when users type certain search terms. PPC is effective for short-term campaigns and direct-action products. These sponsored links create very targeted results for users and if links are worded in the right way, they can create bursts of productivity.

But a recent article in Entrepreneur Magazine warns that PPC has to be used effectively to maximize its return on investment. Using popular search terms like 'shoes' or 'travel' can become very costly. Instead, author Rosalind Resnick suggests being as specific as possible with the terms you choose, like 'hiking boots' or 'skiing in Nepal'.

If small businesses hope to thrive on the internet for any length of time though, they must master Search Engine Optimization, or find someone who has. Numerous studies suggest that, while short, direct-action PPC campaigns are effective; many online consumers distrust sponsored advertising. In a 2009 study from Penn State University's College of Information Science and Technology, researchers found that 77% of their nearly 500 respondents preferred non-sponsored links. Instead, when users were interested in clicking through, an overwhelming 85% chose top organic results.

Search Engine Optimization allows you to access this 85% by altering your copy to include top keywords, getting links and reposted comments from other websites and promoting using all available methods to make sure your business appears in as many searches as possible.

These methods are no longer relegated to techie jargon or some sort of untested trade secret. Fortune 500 companies like Google and Yahoo have built their businesses on these practices. If you are a small business looking to gain traction on the web, your next keyword should be Search Marketing.

Ken Wisnefski is a seasoned entrepreneur and chief executive with extensive experience in the online marketing industry. Ken’s business, WebiMax.com, is a premier, online marketing company specializing in seo, ppc, and public relations services.

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