SEO vs. SEM The ROI Myth Busted

Filed Under (Free SEO) by admin on 01-10-2009

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Search engine optimization and search engine marketing both are intrinsic part of Internet marketing efforts. But there is some confusion as to which one is better strategy in return on investment (ROI) terms. This article helps clear some of the doubts.

SEO vs. SEM The ROI Myth Busted

Return on investment (ROI) is one of the deciding factors for any course of action involving investment of resources. For quite sometime now, a debate has been raging on whether search engine optimization (SEO) has better ROI than professional search engine marketing (SEM).

In fact it has become a bit of a myth that it is easier to get good ROI through SEO than it is to get the same ROI through SEM. Two facts have helped evolve this myth SEM involves click costs while SEO works through free traffic. Lets see whether this myth holds any water.

Well, a closer look tells us that this myth doesnt have any truth in it and there are several reasons for that. In this article though, we will deal with just one reason: the landing page difference.

In SEM, you decide the landing page your visitors will see. In SEO, a search engine spider decides on the landing page visitors will see. There’s a difference in control, and that difference makes all the difference. Thats why serious search engine marketing services providers opt for full blown SEM rather than just SEO.

Searchers, after all, are people with itchy back-button fingers. If they come to a site and don’t think it’s the best site for them, they’ll return to the search engine results page - and click on your competitors’ links - in a matter of seconds.

But if your landing page is optimized for the keywords the searchers choose, and the ad copy the searchers see, then you’re able to tell a new visitor, right away, that he/she’s come to the right place.

And no matter how amazing your site is, that’s a message that visitors need to hear. Because people don’t just want to see a good landing page, they want to see a relevant landing page.

But only a good search engine marketing firm can optimize your landing page. A search spider won’t.

In both SEO and SEM, you only hit ROI if your searchers convert. A search engine marketing services provider might require a higher initial investment than an SEO firm does (because SEM requires the management cost, plus the PPC cost; while SEO only costs the price of management alone) - but you’re also likely to get better conversions through SEM, because you’re likely to get better landing pages through SEM. And it’s only conversions that will get you ROI.

Are we saying that getting the best SEO possible isn’t worthwhile?

Absolutely not!

The more real estate you take up in the search engine results page, the better. It will plant your brand in the psyche of the browsers making your website easier to recall when they would require services/products you offer.

So good SEO is absolutely vital to strong internet marketing! But saying that SEO will get better ROI than SEM - because organic traffic is free - ignores the most important element of SEM: control. And its control that makes all the difference between getting traffic, and getting traffic that converts.

And that makes a huge difference when it comes to ROI.

How to Analyze a Competitors Website.

Filed Under (SEO Tips) by admin on 19-09-2009

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When you analyze a competitors website, you need to make sure youre prepared to do the job correctly. Competitors websites, if analyzed properly, can give you all sorts of information that you can use to increase the traffic and the popularity of your site. You can use these sites to analyze your own market. If a site gets a lot of hits it has to be doing something right. Check out where it is ranked, what key words it uses, how it is formatted, and what you can do to exemplify the good and filter out the bad. Also be sure to keep copyright laws in mind as a copyright infringement suit is never good for you, your site, or your blood pressure.

Identifying the Leaders.

You need to start off by identifying the major players a good place to do this is Yahoos directory. Its not as comprehensive as it once was, but its good if youre looking for the major players. You may want to print out the directory to take a closer look. Look for large companies, as well as innovative approaches and new products. Also use this examination as an attempt to identify the niche markets that the major players have not identified and exploited. If you can find new niches youre basically set as far as traffic goes.

Also consider that since Yahoo!s directory is the place that you look to find the big players, it may be a good place to get listed in order to become a big player. These little associations are important if you want to start to attain more and more traffic and conquer a niche or category. Try to identify all places that the big dogs hang out and start hanging out there. Its all about who you know in this business so bigger is better. You might not be ready to play with the big dogs, but the only way to get there is to sit down and give it a shot.

Sites like Media Metrix 500 can tell you which companies get the most traffic, and you can learn about the relative traffic by using Alexa. Alexa is a free add-on to your browser that ranks the traffic to each sire you visit, telling you whether its in the top 100, the top 1000, the top 10,000, and so on. This gives you a rough idea of where your competitors are in the pecking order.

Scrutinize the Leaders.

The next step is to study the top 5 or 10 competitors very closely. There is a lot that can be learned by looking at competitors website and analyzing them. These are the things that you should look for.

1. Make sure you check to see what products or services they offer, and note anything thats different from your own offerings. Look for gaps that you could fill.

2. Think about the look, feel and functionality of their website.

3. See what advertising campaigns and offers theyre running.

4. Look at their strengths and weaknesses, from the customers point of view.

5. See if you can figure out their strategy.

When youre dealing with publicly traded companies, you can often get detailed information from their SEC filings. Write down the names of their key players and then look for any interviews and speeches they might have made about their website.

Look for Strengths, Vulnerabilities, and Gaps.

Now, summarize the information youve found into a few sentences for each competitor, highlighting the strengths and weaknesses of each one. Note strategies that are going to be necessary to counter their offering these will depend on your own websites strengths. If youre small, then youll need to be resourceful to exploit their weaknesses.

With this research, you can create a marketing plan. Be sure to include how you intend to deal with competition, and what steps you think youll need to take for you site to come out on top. Once youve finished analyzing your competitors, you need to consider whether it would be better not to compete at all, and find a less-saturated market.

Dont get frightened away prematurely, though make sure you know what youre getting into before you start, and dont let big companies intimidate you. Remember that you can move faster than they can! All you have to do is offer your customers things they cant find anywhere else.