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The State Of Search Engine Marketing, 2003. Google rules the roost.

While some other forms of online advertising are tanking, search engine marketing is enjoying a stellar trajectory with site owners and investors alike. Google have become the first post-crash tech darling, while Overture and Yahoo continue to enjoy positive results. Cost effective SEO/SEM strategies mean that webmasters are falling over themselves to please the search engines and grab those potentially lucrative top spots.

Are the old stalwarts of the Internet the happy face of Internet advertising, circa 2003?

SEO Grows Up

Last year, I had the pleasure of interviewing some of the leading players in the search engine marketing world, including top executives from search engines such as Google & Inktomi.

Two trends that many interviewees acknowledged, besides the potential and popularity of this marketing channel, were that search engine optimization is in the process of "growing up", moving beyond pure placement and firmly into the realm of marketing. ROI, conversions, reporting and tracking are becoming increasingly important. The old-school technical exercise of attaining high rankings is perhaps becoming increasingly marginalized. If rankings do not translate into sales, then what good are they? It's no longer enough just to be seen, web sites must put search engine traffic to work.

Ralph Tegtmeier, of fantomaster.com, put it this way. "(SEM) will probably be ever more concentrated on ROI requirements. This demands a strong combination of tech savvy and marketing outlook, unlike the classical SEO scenario where technology enjoyed an absolute priority, with marketing expertise playing only the second fiddle".

However, important as search engine marketing is, interviewees also acknowledged that search engine marketing is only one piece of the online marketing pie, and site owners would be wise to diversify.

Brett Tabke, of Webmasterworld: "Since the day Infoseek was closed, I have had a note tapped on my monitor: "Beyond The SE's". It was clear to me back then that the quantity of search engine referrals would continue to shrink and that alternatives must be found. Whether you want to call it optimization, marketing, or promotion, two years from now it will be more broad based than ever before. There is a diversification underway that will require us to learn more than just the search engine game".

Successful search marketing will involve a heterogeneous mix of factors with one common aim: to get traffic and, more importantly, ensure that traffic is put to good use.

Search Engines Reaching Out, Some Webmasters Remain Skeptical

Search engine optimisers have always had a tenuous relationship with search engines. This year a Wired article featuring Sergey Brin, Google's "conscience and head policymaker", claimed "the way Brin sees it, the optimizers are co-opting Google's bond of trust with its users. He regards optimizers the way a mother grizzly might regard a hunter jabbing at her cub with a stick". However, Brin is probably not unhappy with those SEO's/SEM's who have reportedly poured large sums of cash into the Google coffers via AdWords and other paid placement programs.

To be fair, 2002 saw a public reaching out between search engines and webmasters, more so than ever before. Googleguy, a Google employee answers webmasters queries via Webmasterworld. I interviewed Cindy McCaffrey, Google's VP of marketing, and she had this to say on Google's communication policy "We have many channels for maintaining frequent and open communications with the webmaster community. Of course, there's Googleguy. We also provide specific info on our website for webmasters, we attend industry events for webmasters, and participate in forums. We are always looking for new ways to connect with this community and are committed to maintaining an open dialogue with webmasters". Some webmasters remain skeptical of Googles motives, however.

While Google may rule the roost for now, other search services are showing signs of waking from their post-crash slumber. Yahoo recently bought Inktomi and played down it's association with Google, although it still features Google listings in it's search results. Inktomi rolled out their new search offering, Web Search 9, and AlltheWeb are looking at adding catalogues this year. Things are hotting up - search is back on the agenda, and, if rumor has it, back on the NASDAQ.

A Unique Medium

One thing is certain: search engine marketing is looking very healthy indeed as we head into 2003.

Why is this?

The underlying fundamentals of the activity remain sound. I think search engine commentator Danny Sullivan put it best, "I liken search engines to being a "reverse broadcast network." People pay tons to be on television because you can get your message out in front of millions of people: broadcasting. With search engines, millions of people are telling you *their* messages: what they want to buy, purchase or get information about. You don't broadcast to them; instead, it's the reverse, they broadcast to you. There's very little if anything as a marketing or information medium that I can think of that compares to this. It's golden and still today amazingly unrecognized".

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Peter Da Vanzo is a Search Engine Marketer and search industry commentator. He can be found at www.searchengineblog.com. This article is (c) 2003. All rights reserved. Republication rights on application.

 


 

 

 

 

 

 

 

 


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