The explosion of revenue and site traffic generated by search engines has led to a new marketing method that has yet to be embraced by all ad agencies. Generally speaking, search engine marketing is the process of improving a site’s ranking within SERPs by utilizing SEO techniques or optimizing search engine PPC ads for the purposes of improving the ad’s position.
What are your thoughts on ad agencies offering SEM services. Discuss at WebProWorld.
The Fight For Marketing Rights: Heavy Hitters of Search Engine Marketing…
An article by John Tawadros that appeared in MediaPost’s SearchInsider spelled out five reasons why traditional ad agencies “hate” search engine marketing (SEM). The reasons for the apprehension are, according to the article:
1. Achieving profitability in managing clients’ paid search advertising is extremely difficult
2. A shortage of skilled SEM practitioners
3. Even “poaching” experts cannot produce superior results
4. SEM is so complex it requires singular focus
5. SEM requires a commitment to research
These examples, with the exception of number 3, don’t require further explanation. Number 3 means gaining an SEM/SEO expert from another firm doesn’t translate into automatic success for your company. Tawadros says:
“SEM firms have spent the last six to seven years building proprietary tools that provide enormous leverage to staff. These tools evolve and grow with the organization, and because they are enterprise-based application suites, they don’t leave with the employee.” In other words, you get the employee, but not the tools he/she uses.
The gist of the article points out the difficulties of making a profit in the search engine marketing. Because SEM is basically an exercise in effective SEO techniques, these reasons can be applied to any site or campaign that requires optimization.
However, the complaints could merely be a case of traditional ad agencies resisting this newer and more modern brand of marketing. Could the ad agencies be longing for the media and print method of “branding” a client’s product – something hard to accomplish in the search engine industry? Could this be a lack of respect or knowledge concerning the search engine industry?
Chris_D, a moderator at the SEW forums, who seems to agree with the second question adds another reason to Tawadros’ list. “He forgot the sixth reason: 6. Most traditional Ad Agencies just don’t grok (understand) the web, let alone search…” pleeker, another SEW poster agrees with Chris by saying some of the article rings true while other parts do not. He goes on to say that “knowledge wins out” and that many ad agencies seemingly don’t have the knowledge to be as successful at SEM.
A question comes to mind concerning ad agencies and SEM/SEO: are they even required or needed to have a successful search engine ad campaign? Another MediaPost publication, MediaDailyNews features an article that discusses the relationship between search engines and ad agencies, furthering the thought that the two industries are not mutually symbiotic.
Some SEM companies resent the fact that Google and Overture offer the necessary tools to optimize your ad copy. These agencies feel the services that search engines offer are cutting into their territory.
Although, to say the search engines don’t need the services of SEM companies is premature. Currently, Google is developing client services that will allow them to work directly with agencies that offer SEM. Barbara Coll, President and Chair of the Board for search industry trade group, Search Engine Marketing Professional Organization (SEMPO) says, “Obviously [search engines] want to work with SEM companies… because we sell their product beautifully; we’re like an extension of their sales force.”
Denise Garcia, Media Research Director at GartnerG2, coined a term that best describes the relationship between search engines and ad agencies who provide SEM services: co-opetition’. Meaning, while each industry needs each other’s services, they will also be competing against one another.
As it stands, while the two industries may not appreciate each other, they certainly can co-exist. In fact, with Google developing relationships with ad agencies that offer SEM services, the two seem to be joining each other at the hip.
Chris Richardson is a search engine writer and editor for murdok. Visit murdok for the latest search news.
