Organic Vs. PPC - Big Media Moveover

An article By William Atkin

If you’re in search engine optimization you know that organic search results are always more effective or more sought after than PPC keywords. On occasion though PPC is a must, the problem is that rates are getting extremely high. High prices combined with click fraud can bankrupt someone.

According to a survey conducted by SEMPO a.k.a. the SEMPO Big A** Survey showed that the primary objective for most PPC advertisers is brand awareness. Here are some facts from the survey.

• SEM was a $5.75 billion industry in North America in 2005, and will grow to $11.1 billion in 2010
• Brand awareness is advertisers’ top objective for SEM programs, particularly large firms
• Organic SEO is the most popular form of SEM, with 4 out of 5 advertisers using this method, with paid placement a close second at 76%
• ROI is in line with inflation: Four out of five advertisers say they could afford to pay a mild increase in the price of paid placement, while of advertisers and all agencies report moderate price hikes this year.
• SEM is poaching budget from other marketing channels for the vast majority of advertisers - especially from affiliate marketing and web site development.
• Senior executives consider SEM a high business priority with almost half of advertiser respondents (47%) saying that senior management at their companies were "very involved" in SEM programs, especially among companies with fewer than 500 employees
• Most advertisers plan to manage the majority of their SEM spending in-house in 2006. SEM agencies may see a decline in business as a result.

One of the reasons pay per click costs have reached enormous heights is lack of direction of major ad buyers. Major companies have finally converted their advertising budgets to include internet advertising. What this means is that companies with vast amounts of money are putting all of their money into Adwords because they don’t know where else to put it. While this may be more for image and PR it seems as if major companies are misguided in their internet marketing efforts. So who wins between PPC and Organic? Organic search results still trump PPC because regardless of what advertisers are doing one fact is clear. Users prefer natural results because they carry more authority.

William Atkin Utah Search Engine Optimization

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