Search Engine Marketing Services: Trends and Predictions
The search engine marketing industry is consistently evolving, sometimes at a pace that makes it hard to believe that search engine marketing services can stay on top of all the latest developments. The one constant for search engine marketing firms, and for the industry in general, is change--usually for the better, sometimes for the worse, but almost always significant. The industry is not for the faint-hearted or those who abhor change. However, savvy search engine marketing firms try to look ahead to anticipate trends. Here are my predictions of issues that search engine marketing services will face in the short term.
More Accountability Demanded from Search Engine Marketing Firms
Search engine marketing firms that use tactics designed to trick the engines into showing results that aren't directly addressing the search query will struggle, as more companies begin to look at the larger goals that lead them to investigate search engine marketing services in the first place. The "traffic-centric" mindset will evolve as companies begin to demand accountability from search engine marketing firms in terms of bottom line increases. Ranking increases delivered by search engine marketing services will be questioned if they do not lead to significant traffic increases, and traffic increases will be questioned if there is no subsequent increase in business generated from the website. This is a good thing for quality search engine marketing firms, since the "snake-oil" practitioners that have given the industry such a bad name will never be given serious consideration by any company that does its homework in the vendor selection process.
Rising PPC Costs and Increasing PPC Frustration
As larger companies with huge budgets continue to jump into the pay per click (PPC) arena, costs will continue to rise. (Average PPC costs have increased 37% from Q1 2005 to Q1 2006.) These well-funded companies will use PPC as a branding tool as much as a sales tool, which will squeeze out many of the current smaller advertisers. In fact, the top 10 PPC advertising companies, based upon the number of PPC impressions, include such names as eBay, NextTag, Vonage, Time Warner, Orbitz, Target, and Yahoo. More large companies will continue to join the fray, many of them throwing ROI out the window and bidding high prices for desirable keyphrases for the sake of branding. This means that search engine marketing firms will find small- to medium-sized companies turning to SEO to achieve results when they no longer can afford PPC.
Increased Interest in Organic SEO
While PPC costs rise, there is also a trend that no doubt disturbs the engines that offer PPC programs. Sixty-six percent of consumers "distrust" paid search ads. Up to 85% of searchers say they "tend to ignore the paid listings", while 87% of commercial clicks take place "on the natural (not sponsored) search results." Three times as many marketers who outsource the management of their natural SEO to search engine marketing firms and who also participate in pay per click advertising recognize a higher ROI from their search engine marketing services than from PPC. These facts, coupled with the fact that Google has recently announced that it will begin to take the relevance of pages into consideration when deciding in what order the ads will appear (which will mean that effective PPC campaigns will need at least some basic organic SEO), point to one obvious result--an increase in the number of companies that investigate organic SEO programs, whether internally generated or provided by outside search engine marketing firms.
Continued Reluctance from Agencies to Pursue Search Marketing
To most, it seems like a perfect fit--traditional advertising agencies joining forces with (or purchasing outright) PPC providers and organic search engine marketing services. However, the average agency is scared to death of search engine marketing services in any form (although some forward-looking agencies have finally jumped on the search engine marketing bandwagon). The reasons are simple: accountability and metrics.
Advertising agencies have for years made money based upon a percentage of what a company spends on advertising. This model has been the accepted norm for decades. However, it raises some ethical issues. What is the motivation for an agency to recommend decreased spending on non-performing initiatives?
