Macro Economics of Search Advertising
Scenario: Supply of your product/services is still going strong, but demand has begun to decline as consumers reduce discretionary spending. When the terms ‘recession’ and ‘depression’ are being debated as to which one best describes the economy, good advertisers know it is time to change focus.
The power and control of SEM PPC listings drove many advertising plans to new heights of great success in previous years, but for many advertisers this came with a steep cost, as organic Web sites/networks were ignored in favor of the instant gratification provided by SEM.
When the economy is doing well and consumers spend freely, the cost of a PPC click is often trivial compared to the possible returns. Now, as many consumers simply do not have the funding or faith in additional purchases, advertisers focused on high spending for higher returns are scrambling. While the incoming clicks are maintainable at historical levels, the conversions needed to justify that cost are, in many cases, not following suit.
The harder road often leads to the better ending. Quality organic Web networks take many key factors to succeed: time, understanding of search engine rules, time, link structure, content management…did I mention time? Many organic factors can be met head on with resource skill sets but the cost and patience needed to overcome the time intervals between goals often demoralize advertisers. This is where the strongest and most dedicated are going to survive as the global economy continues into the recession.
It is never too late to start an organic based advertising effort; although the longer you wait the harder it will be to compete at a high level. Dust off that old Web site with a new design, update the supporting technology to provide a modern look/feel, and examine those links (are they even leading to active or helpful sites?) and turn your attention back to low cost fundamentals.
