Let me preface this report by citing advertisers in 2004 have spent 4 Billion dollars on search engine marketing according to (SEMPO) the Search Engine Marketing Professional Organization.
Website marketers cited Search engine positioning was the top method to drive traffic to their sites (66%), followed by email marketing (54%). Source: Direct Marketing Association. Accordingly, the most cost effective way to market your web site online is to obtain several top 10-search engine rankings in the major search engines for your keywords.
According to a recent Jupiter Research Survey, searching on the search engines is one of the main uses of the Internet among 79% of users. Source: September 2002 Jupiter Research Survey. So that being the case, whatever your promoting you’ll want to make sure it can be found on the first page of the search engines results page.
The reason is numerically simple. An I prospect Survey in 2002 reported that 78% of web users abandon their search if the first 3 pages don't provide an answer to their question, and 28% don’t scroll past the 2nd page of results. Source: Media Post article reporting results of Spring 2002 IProspect survey.
Combine those facts with the Internets explosive growth rate of 1.8 Million people worldwide going online every week for the very first time, Source: Official Guide To Internet Promotion and you can soon appreciate what a top 10 ranking can mean to you.
Google receives approximately 39.4% of all search engine traffic. Yahoo receives approximately 30.4%. They’re simply the largest search engines being utilized online today.
Bringing up the rear is MSN at 29.6%, and AOL 15.5% then Ask Jeeves with 8.5%. Source: Nielsen//NetRatings January 2004
How much traffic is that? Well, Google and its partner sites were reporting a whopping 250 million searches a day in February 2003.
Overture and its partners were reporting over 167 million searches per day. Inktomi reported 80 million followed by Look Smart with 45 million per day.
Find what reported 33 million while Ask Jeeves reported 20 million, Alta Vista reported 18 million and finally fast reported 12 Million searches per day. Source: Searchenginewatch.com 2004.
With all said, you can easily see how your search engine rankings are directly proportional to the traffic your web site receives, and your site traffic is directly related to your potential to profit online.
Oh, and in case you’re wondering how much money is spent online; a recent Forrester Research Report indicated that online spending reached $95,700,000,000 million in 2003!
That's a cool 95.7 billion dollars. Projected online spending is estimated to grow to $229 billion in 2008! A whopping 139% increase in online spending! Source: Forrester Research
Now with these facts in mind I’m confident you can clearly see what a top 10-search engine ranking can mean for your bottom line. Although it does leave a question unanswered in my mind, what has a higher ROI… organic search engine optimization or paid search?
According to SEMPO’s key analysis, the U.S. & Canadian SEM Industry Size Estimate by tactic in 2004, organic SEO accounted for 12% of the market share or $492,057,200 while Paid Placement accounted for $3,341,878,176 or 81.8%.
Interestingly, 9 out of 10 respondents are actively engaged in organic SEM marketing programs accounting for 89% of the respondent advertisers. This trend can be contributed to the average cost of popular keywords continuing to escalate.
If the escalation continues to raise it could make paid search engine advertising exponentially cost prohibitive for all but the largest advertisers… the 900lb gorillas!
Simply put, ROI is outpacing inflation: SEMPO’s key analysis indicates advertisers could afford to pay on average 33% more for their keywords and remain profitable, while they say prices have gone up 26% on average in the last 12 months. That’s leaves a 7% advertising margin to maintain current profits for 2005!
SEMPO’s data also noted that advertisers will get smarter about managing their paid placement programs before they cut back on spending.
This is also consistent with a report released by Nielsen/Net Ratings indicating that the growing demand for search engine advertising is outstripping the supply of currently available advertising space.
These findings seem to indicate the inventory of keywords is approaching a critical demand problem however; most advertisers felt they still have some degree of price flexibility in their paid placement programs before they will reach the threshold of diminishing returns.
Is there any wonder why organic search engine positioning has gained popularity for online marketers in 2004? Could it be higher (ROI) return on investments?
SEMPO also cites that 43% of advertiser respondents have shifted their budgets away from other marketing programs for Organic SEO.
So what does it all mean? Let the numbers speak for themselves.
Organic SEO is undeniably gaining favor over the lower ROI paid advertising. This is evidenced by virtue of the fact that paid advertising is becoming less profitable.
Although paid advertising will continue to hold a large portion of the market share, as paid advertising returns diminish and keyword costs soar my early 2005 forecast is for the materialization of a progressive organic SEO market trend to facilitate the need for advertising space.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
The Best Kind Of Online Business ???
By: johnaydan | 09-07-2008
Hi Guys,I am planning to get into home business, and have conducted some small groundwork... I just wanted to know that which kind of online business opportunity is the best business right now??_________________________Proven Online Home Business Opportunity...
Smc
By: molly | 22-06-2008
yes i would like 2 know the compancy smc is 4 real ? thank you
Family Business as a Job
By: MarilynBB | 21-06-2008
Would you like to work in a business run by one of your family members? Why or why not?
Firefox
By: Kibbutz | 20-06-2008
What are the advantages of the new Firefox browser (please don't get technical)?
I need your help
By: Betty | 19-06-2008
has anyone found any data or typing job online that is legitimate that you can do from home. I need to find a job that i can do from home if you can help I would appreciate it
Looking for work online
By: Betty | 17-06-2008
Has any one found any typing or data jobs that are legitimate that you can work from home. I need to find a job that I can do from home. I lost my husband my income was cut so now I need to find a job right away can someone help me
Q&A Powered by:
Latest Home Business Articles
Buying a Network Marketing System? Save Your Valuable Time and Money! 5 Questions You Must Ask Before You Hand Over Your Credit Card
By: Keya Williams | 24/07/2008
The Renegade System, Magnetic Sponsoring Online? Each of these network marketing system are designed to pay you as you generate leads to grow your business. But how do you know if they are any good OR if they are right for your business? Here are 5 questions to ask yourself (or the creators of these systems) before you pull out the credit card.
Marketing A Business Online
By: Mike Fordham | 24/07/2008
Marketing a business online can be hard work if you are starting from scratch. In addition, if you have no previous experience, it's a problem knowing just how and where to start. And if you have virtually no Internet skills at all, where do you start?
Everything About: Troy Management Ltd
By: Eric Mortensen | 24/07/2008
Troy Management is a new and very innovative concept for everybody who dream about a perfect Home Based Business with the best support ...
Explode Your Adsense Income - Vital Tips
By: Suresh Kumar | 24/07/2008
So you have eagerly decided to join the adsense game in your pursuit of online business success. However for many the process of making money from adsense is not as simple as they may have thought. Many struggle with getting their click through rates up, while others have very low earnings per click.
Turn the Search Engines Into Find Engines
By: Prem Bahadur | 24/07/2008
Designing and building a website can be a thankless task. You spend hours of your time planning, designing and creating the whole site, carefully assembling it into a work of digital art. Having lovingly pored over every word and put heart and soul into a decent navigation system and a well thought out layout, you eagerly publish your site and hold your breath for the torrent of visitors.
Combating Loneliness While Working From Home
By: Chris Simpson | 24/07/2008
Combating loneliness while working from home can be a difficult task. Coming from a professional executive position to a work at home position was a very exciting move for me.
Using Content Sharing Sites with Network Marketing
By: ERIK GIFFORD | 24/07/2008
With a little help from your network marketing friends and a nice content sharing site, you can maximize web traffic and monetization. Learn the simple art of the hyperlink, and avoid spammy, generic pay-per-click advertising sites.
How to Give Your Home Based Business a Boost with Custom T Shirts
By: Ron Subs | 24/07/2008
A home based business can thrive by advertising in the area where it is located. Custom T shirts can be used to get potential customers' attention.
More from SONU KUMAR GARG
Adsense is Really Making a Huge Impact!!!
By: SONU KUMAR GARG | 11/07/2008 | Home Business
Adsense is really making a huge impact on the affiliate marketing industry nowadays. Because of this, weak affiliate merchants have the tendency to die faster than ever and ad networks will be going to lose their customers quickly.
Adsense and You - Best Combination..
By: SONU KUMAR GARG | 11/07/2008 | Home Business
Adsense earnings recently took another leap with the addition of YouTube to its repertoire of advertising mediums. While enhancing websites with the ever popular video medium, YouTube has added another dimension to the Google Adsense business model.
Staying Sane Survival Tips for Small Business Owners
By: SONU KUMAR GARG | 24/03/2008 | Home Business
Your lunchtime thoughts are comprised of brilliant marketing strategies and anxiety over bill payments. You’re the CEO, human resources director, janitor, and administrative assistant all wrapped up into one. You open the doors at dawn and lockup when it’s time to wrap up for the day.
5 Ways to Drive Traffic Away From Your Ebay Auction
By: SONU KUMAR GARG | 19/03/2008 | Home Business
eBay is a one-stop solution to anyone who wants to make money online. Whether you just selling a few unwanted items from around your house or your want to develop a work from home business, eBay remove many of the obstacles for you. Not many other websites can help you drive targeted traffic towards your sales, process the order on your behalf and accept payment though PayPal. All you need to do then is dispatch the item to your winning bidder.
The No-work, Money-making Websites
By: SONU KUMAR GARG | 18/03/2008 | Home Business
While growing up on the farm in North Carolina, I loved gardening. There was something magical about planting a dollar's worth of seeds, watching them germinate, and then feeding the family for an entire season with my efforts.
Links From Articles
By: SONU KUMAR GARG | 18/03/2008 | Education
Links building is a primary job for developing link popularity. Link popularity is one of the vital measures taken in consideration by the search engines to rank your web pages. The number and the quality of links on your website would also play an important role for raising your page ranking. You can use various strategies such as article writing, software and tools to raise your link popularity.
When to Rent a Laptop Computer
By: SONU KUMAR GARG | 17/03/2008 | Online Education
Most companies either lease or buy their computer equipment, but why or when should a company rent laptop or notebook computers?
Business 
