Which method of search marketing provides a higher return on investment rate? Is it search engine optimization or does pay-per-click advertising pay higher dividends…?
Search engine marketing company iProspect asked these questions in a recent survey (pdf) measuring which method was more profitable. To some surprise, it was determined that the implementation of on-page optimization techniques is more financially beneficial when compared to PPC advertising at least at first glance.
To determine their findings, iProspect surveyed 860 respondents made up of various search marketers and agencies. The study focused on companies who outsource their search engine promotion efforts (which makes on-page optimization efforts measurable). What iProspect found was of the organizations outsourcing these tasks, 35% say optimization offers a higher ROI than PPC advertising does.
However, the survey also found that 45% of those practicing both on-page optimization and pay-per-click advertising have a hard time determining which method provides a higher ROI.
According to iProspect’s press release, the survey made these additional findings:
iProspect President Robert Murray had these thoughts about the survey’s findings:
Three times as many marketers who outsource the management of their natural search engine optimization and also participate in pay per click advertising recognize a higher ROI from SEO than from PPC. Clearly, there’s something to be learned from that. I don’t think sophisticated marketers, and those familiar with the escalation of bid prices in the PPC marketplace, will be surprised by the finding that SEO produces higher ROI. However, novice search engine marketers may be.
In order to conduct a successful search marketing campaign, it appears as if site owners or company decision makers should employ both optimization and PPC advertising. While some have difficulty separating the two when it comes to ROI, a targeted ad campaign accompanied with prudent on-page optimization can be very successful. This, of course, depends a great deal on the competitive level of the keywords and keyphrases being targeted.
If you are concentrating on area with a great deal of competition, these efforts may not be as fruitful as you’d like, because of the various companies vying for the top spot. However, don’t let this discourage your promotion attempts. Continue to refine your area of interest (keywords and phrases being targeted) and make sure your optimization and PPC endeavors reflect these efforts.
Chris Richardson is a search engine writer and editor for Murdok. Visit Murdok for the latest search news.
