Back to the July 2005 issue.

Search Engine Optimization vs. Pay-Per-Click

(by Peter Bohenek, President)

Should clients “buy their way to the top” or is traditional search engine optimization just as or more effective?

Search Engine Optimization - Defined

Search engine optimization (SEO) is the process of fine-tuning or optimizing your website to reflect specific keywords and phrases that are relevant to your business. The goal is to attract visitors to your site who are searching for the same keywords.

This optimization relates to a variety of elements, not only on your website’s home page, but its sub pages as well. Those elements can include things like title tags, Meta tags, alt tags, link structure, link popularity and the content of the site itself.

Search engine optimization also involves making sure your site is listed in the major directories such as Yahoo and Open Directory to name a few.

Other elements of SEO include monitoring your positioning in the search engines, making adjustments as necessary to your site to stay in top position and submitting to new engines or directories that come along as well.

Pay-Per-Click - Defined

Pay-per-click (PPC) is a service in which an advertiser selects specific keywords or phrases and then creates a listing that will show up when someone searches for that phrase.

The advertiser selects an amount they are willing to pay for each click through on their listing, which results in a visit to their site – thus the term “pay-per-click.” At Overture, you can bid anywhere from $.10 up, for each click through.

If other advertisers have selected the same keyword or phrase as yours, then you are competing against them for the highest position. Whoever is willing to spend the most shows up first.

What PPC has allowed companies to do is to instantly “pay” their way to the top, whereas traditional search engine optimization takes more time and effort.

PPC vs. SEO

First, you must understand that PPC will never help improve your positioning in the regular search results. They most always appear in a “Sponsored or Featured” area which is usually at the top or side of the regular search results.

While being at the top is important, being at the top as a sponsor does not guarantee click throughs. There are still some end users that do not click on the “paid” listings but rather will search through the regular search results.

Pay-per-click will not optimize your site so that it reflects who you are and what you offer. Nor does PPC consider customer conversion – once people get to the site, they must interact with it. In most cases we are looking for a sale.

If your site is poorly optimized before you begin to advertise with PPC, it will still perform poorly despite the new cost of driving traffic to your site.

Another downfall is that when you stop paying for PPC, it disappears and so does the traffic it brings! This means that you are dependent on PPC for traffic and sales. If the cost of PPC advertising increases (i.e., your competition outbids you), your cost of getting the same leads related to the same keyword will go up – not necessarily your sales.

On the other hand, a well-executed SEO plan will improve your position in the regular search results. You will have a finely tuned website that reflects who you are and what you offer. You will have conversion tools to ensure sales and the collection of user demographic information and perhaps most importantly, you are not held hostage to having to continuously throw money at search engines to maintain your listings.

In most cases, once you have good positioning in the regular search results, you will continually receive traffic. SEO will require minor adjustments from time to time but all in all brings in consistent low-cost traffic.

The fact of the matter is that SEO is the foundation of any web marketing you do. It entails the optimization of your site to achieve top rankings. This includes strategic messaging, effective content, excellent site layout and superior functionality. It also includes conversion tools that engage and ultimately convert users to your website.

We do not feel that PPC is a waste of time. We feel that it is also necessary, but it must follow a solid SEO program as the foundation. PPC can bring immediate results in terms of traffic and sales, but SEO provides a system approach that far and away exceeds the benefits of just PPC advertising.

Please contact us today to discuss more about PPC, SEO and Internet marketing.





Statistics Corner

Search marketing is expected to grow to a $9 billion industry by 2009.

56% of Internet users do not know the difference between paid search and natural search results.

Online searches for the terms “real estate bubble” and “housing bubble” climbed to a 12-month high for the week ending May 28th.

Google’s stock recently broke the $300 per share mark.

79% of online shoppers surveyed said email order verification was very important.

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