What makes Search Advertising so effective?

The ability to measure the results of search advertising has been the key to the fantastic growth of this promotional tool.  When you can prove your profits will fall if you reduce your advertising spend, there is not much dispute about allocating the budget.

Yet, search advertising is only one form of online advertising and is still only a small part of most big company budgets. Other digital advertising and offline direct response promotions can be measured in the same way.  What sets Search Advertising apart?

The reason is that search advertising is seen as immediately useful rather than an interruption of other activity.  In the old days when people still used Yellow Pages, they were actually searching for listings and adverts of the category they needed.  Nowadays we use the search engines to find more data - and more accurate data - online whether we are reviewing  our options or are actually ready to buy.  Research suggests that a natural listing on the first page of results is some 7 times more likely to generate a click than one of the sponsored listings.  This shows searchers are well aware of the difference between the two but still make frequent use of the adverts to find the information they need.

This positive contribution to the searchers' findings is shown also by comparing results of search advertising with content advertising (in Google terms the difference between AdWords and AdSense).  Content advertising is also placed in suitable contexts according to the key words used,  But now the searcher has arrived at the given  page through other routes than the search engine so that any advert does not make a direct contribution to his requirements and is more likely to be seen as an interruption.  The result is that click through rates are lower.

So why isn't Search Advertising even more widely used?  Well, at any given time there is a finite number of searchers for any particular product or service.  If you are not satisfied with the number of searches to generate your sales, you have to look for other channels to attract customers.  If your business is large enough to need a well-known brand image, you must invest in long term advertising and hope for an eventual return.

So what promotional channels should the average small business use?

1. A website optimised for search engines using the relevant keywords

   Even when you do not expect to use the internet for active promotion, you need to provide potential customers and suppliers a basic source of information about your business.

    

2. Search Advertising to attract those looking for your business offer.

   Spend up to the level of proven profitability that improves cash flow.  This will also allow you to measure the effectiveness of your site in converting visitors to customers.  Spending will be limited by the number of relevant searches.  Profitability will be limited by the strength  of the competition and your average net contribution per sale.

    

3. Newsletters, whitepapers, PR

   This has a dual role of adding to the valuable content on your website and so improving its ranking in the search engines and keeping you in touch with your existing contact base.

    

4. Networking online and offline, seminars, webinars

   Whereas the previous 3 stages can be largely outsourced to others, networking implies the active use of directors' and management time to extend your contacts among professional peers and potential clients.  This is not only for sales but also for receiving market feedback and developing new business ideas. Results should be measured.

    

5. Any or all traditional promotion channels

   Choose those that can be most effectively focused and measured to minimise the waste that is inherent in such a strategy.