Internet marketing continues to grow at the expense of offline marketing
The BBC reports that Google’s third quarter revenue is up 26% year on year. Larry Page’s commentary is all about Google+ reaching 40 million users but it isn’t even a revenue source (yet?) and the BBC didn’t even challenge this.
Internet marketing continues to grow
The story is really about the continuing growth of Internet marketing and since it’s unlikely total marketing spend has increased 26% year on year, and that’s unlikely given the state of the world economy, the growth in Internet marketing must come at the expense of other marketing: broadcast marketing, print marketing and possibly SEO (Search Engine Optimisation). Part of the growth must also have come from the continued inflation in PPC prices.
PPC vs SEO share of Internet marketing spending
Google’s main revenue source is Adwords, PPC (Pay Per Click) Advertising, about 70% on it’s own properties and 30% elsewhere. Worldwide PPC reputedly accounts for 75% of total Internet marketing spending with SEO making up the bulk of the remainder. And yet SEO, Organic or natural search results reputedly attract 75% of the traffic with the PPC results getting the remaining 25%.
Why does SEO get less Internet marketing spend than PPC?
So why do businesses spend three quarters of their Internet marketing budgets on PPC to produce one quarter of the clicks and spend one quarter of their budget on SEO to produce three quarters of the clicks?
There are many possible answers but it probably comes back to timescale and trust:
- Timescale: PPC produces quick results. PPC clicks may cost more than SEO clicks but they arrive in the same week as the bill. Businesses that take a short term view favour PPC even though it costs more per click than SEO.
- Trust: not all SEO Agencies are excellent. Too many businesses have experienced a bad SEO Agency and paid for a service that didn’t produce results. PPC is more trustworthy.
Internet Marketing Recommendations
- You can’t ignore a 26% increase in year on year revenue, if your business hasn’t yet woken up to the switch from traditional to Internet marketing then you need to take action now.
- If you’re running a PPC campaign you can’t ignore bid inflation. With the costs involved you need to make sure your campaign is being managed by a PPC expert: either employ an expert, outsource your PPC campaign management to an expert or buy in PPC training for your in-house team to grow your own PPC experts.
- If the split of your Internet marketing budget between PPC and SEO doesn’t reflect the 75%/25% share of clicks then consider rebalancing it. PPC clicks will always cost more than SEO over the long term but if you want to get 100% of the clicks for your search terms you can’t ignore PPC. If you want to get the best return on your Internet marketing pound you can’t ignore SEO.
- Question Google announcements; Larry Page is new in his role and needs a success story, Google+ might be it but Google have a terrible record outside of search and especially in social media marketing, remember Google Buzz and Google Wave anyone? 40 Million is impressive but it’s mostly Internet marketing professionals. How many Grand mothers are using Google+ yet do you think? Facebook’s 800 Million looks like a mountain to climb from 40 Million.
- Write remarkable content for your web site that people will be glad they found and don’t forget Google loves the Title tag. Sorry, couldn’t help myself.
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Final Internet marketng tip: when writing blog posts don’t forget your CTAs (Calls To Action).