Tag Archive for 'Search Engine Marketing'

Why Wolfram Alpha will not Change PPC but Improve It

There is a major buzz in the SEM community about Stephen Wolfram’s new creation, Wolfram Alpha and the future of Search Engines.  The major difference between your normal Search Engine and the Wolfram Alpha is its SERPs.  Unlike Google and all other search engines, Wolfram Alpha will give you an answer to your search based on the question you ask, one answer which removes the extra (and most painful step in research) of finding the answer.  Now there is no debate that if it works as planned, Wolfram Alpha could change search however I feel strongly that this will not effect SEM and could in fact improve it.  The reason…people want choices and the ability to research/compare products and services.

Imagine going to Wolfram Alpha and asking, “What is the best pizza in Houston?” and given no choices to choose from, just one single result.  From a user experience perspective, my choice has been taken and thereby it is a poor engine for finding services/products.  However, if you are researching a particular subject or needing an answer to a question that has been burning at your brain, Wolfram Alpha will be the answer…literally.  Understanding the ability to choose v. looking for an answer is what will allow Wolfram Alpha to drastically change search and SEM performance for the better.  From a PPC perspective, especially when there is a thin red line between a qualified and unqualified traffic.  An example can be seen in the health industry, where a term like “cancer treatment” can bring in two types of visitors:

1.    a potential patient looking the best place to get cancer care
2.    a student/curious person looking for information on cancer treatment

The same term could currently be spending a good portion of budget on traffic that isn’t interested in your product, but rather just looking for information.  Its tough to weed out this traffic they are using the same keyword to trigger your ads.  You can use negatives to a certain extent, however this isn’t 100% guaranteed.  Now imagine if Wolfram Alpha starts to become the “fact engine” that can provide answers, not results to your questions and it takes this traffic away from major search engines.  That’s correct, you have better qualified traffic that are using the right engine for their needs.  I need a service or product, my best bet is using Google because I will have choices to make the best economical decision.  I have a question, need an answer I will use Wolfram Alpha.  The point, if Wolfram Alpha is all it is cracked up to be, it will make SEM on Google much more effective by removing all of those pesky visitors that click with no intention to buy…

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Local Search: Yellow Pages vs. Google?

This week I was asked by one of our (prospective) clients for assistance in building a business case to shift ad dollars from the Yellow Pages to Google and the also rans (aka Yahoo and MSN).  After putting the word out that a $10 Starbucks gift card awaited the first Spur employee to find some good data, I put the question out on LinkedIn Answers (often a great venue for connecting with gurus who can answer tough questions).

I realize I’m a bit spoiled by the immediate gratification I often find online; so after 15 minutes passed without a single no LinkedIn answer, I decided to do some research myself.  What I found should be of interest to all marketers who rely on Yellow Pages for local advertising.

According to Search Engine Watch: This year, local advertisers are expected to shift $13.1 billion of their budgeted funds to the Internet, according to Borrell Associates. The number is up 50% over last year. In 2009, local online ad spending is projected to grow another 40% to $18.2 billion in 2009″… “Online advertising is cheaper than traditional methods of marketing and is thought to be the reason for the change. According to Borrell, internet CPMs average $3.65, the lowest of any media, while an offline Yellow Pages ad carries an average CPM of $9.29.”

My take: In addition to lower CPMs, search is much more targeted, actionable and measurable.   And it’s increasingly becoming a preferred way to find local vendors quickly and easily by people of all ages.

I also found some interesting info at RBR.com that compared the fate of Yellow Pages to that of newspapers in recent years: “…the recession is forcing small-business advertisers to be more careful with their ad budgets. Over the next five years, Borrell is predicting 39% of the ad spending on print yellow pages revenues will vanish as small businesses shift marketing budgets online… The key drivers of these changes are broadband penetration and the growing sophistication of search engines and interactive directories. Between 2005 and 2007, 10.4 million adults stopped using the yellow pages “during the past month.” Assuming Borrell knows what they are talking about, those are some compelling stats!

Since I started writing this blog, I have received a good response from LinkedIn!  Chris Reyes from Chicago cited an article that are worth a look.  According to Merchant Circle those that don’t find YP effective allocate 45% of their ad budget to online.  While this isn’t surprising, I thought the next finding was: even the most satisfied YP customers allocate 30% of their budget to online.
So it’s clear that dollars are shifting away from YP to the Web.  What I’d REALLY like to know is how they compare in terms of ROI.  If you have info on the comparative performance of each channel, the same Starbucks gift card offer holds – if you have good data please share it!
If you’ve read this far, I’d like to pose the question to you: where do you spend your dollars for local advertising?   And what would you need to know in order to convince your CEO it was time to adjust your media mix to meet the needs of today’s consumers?

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