Interactive Seven 2009 Supplement - Marketing Week

MWIB_260209_p007 19/2/09 18:26 Page 7
INTERACTIVE SEARCH
A Bugatti,
Volvo and
search
There are certain fortunate
industries which are seen as
almost recession proof – think
supermarkets, drinks manufacturers,
tobacco firms and utility
companies. Despite its apparent
ubiquity it would be complacent
to assume that search
marketing also belongs on this
list. The reality is that we are
not immune from the effects of
brand owners feeling the
pinch and having to tighten
their belts.
As the downturn bites, mar -
keting directors, like ordinary
consumers, will become ruthless in their focus on value. I believe
delivering value from search today means implementing a long-term
strategy which looks beyond the easy, short-term and expensive fix
provided by Google Adwords.
As a massive Top Gear fan, please forgive me a little motoring analogy
by way of illustration. In many ways paid search is like hiring a
Bugatti Veyron for the day – it’s fast, it’s expensive, it’ll definitely turn
heads and grab the attention of passers by. It’s also very easy to drive.
If you decide to splash out on one it’s going to eat up a lot of your budget
and cost quite a bit to run. It definitely gets results, though when the
money runs out it’s going to lounge in your garage gathering dust.
By contrast, natural search is like investing in a Volvo S40. It’s definitely
not as fast, and is unlikely to turn as many heads at first, but it’s
both cheaper and more cost effective. You’ll reach the same destination
as the Bugatti but you’ll have spent less money along the way. Also,
once you’ve got it working properly you won’t have to spend as much
money on maintenance, it’ll just keep ticking along with a regular
MOT and a service or two.
As with many analogies, this may be an over simplification. Ultimately,
it just no longer makes sense to exclusively use PPC to target
increasingly competitive key terms – the returns are just too tight and
rapidly diminishing. Marketing directors really focused on long term
search value need to focus their budget on building a strong base of
natural search listings and then selectively use AdWords to mop up
the long tail.
In the years ahead we need to advocate a more tactically balanced
approach to search. Only through honestly advising and delivering
what is best for our clients bottom lines, rather than our own, will the
search sector emerge from the downturn structurally stronger than
when it went in.
Tanya Goodin, Chief Executive and Founder, Tamar.com,
10 Barley Mow Passage, Chiswick
London, W4 4PH. T: 020 8995 7878,
w www.tamar.com
Maximum
exposure
With search marketing performance
at a plateau, clients need more
reassurance than ever that it can
deliver results. By Joe Fernandez
Search marketing has been growing at a rapid rate, with brands
aiming to feature highly in search engine results. However, as the
economic crisis deepens, marketers will have to carefully consider
how much they invest into search.
Yahoo! UK vice president and managing director Mark Rabe says: “In
the current economic climate, it is clear that marketing budgets will go
down and even search budgets will be scrutinised. This magnifies the need
for cost-efficient, high-impact marketing techniques.”
More than ever, brands want maximum exposure on the internet and
on mobile phone handsets through the use of search engine marketing.
This has led to the creation of large search offerings this year, including
the Yahoo! Network, which claims to give advertisers access to 80% of
the UK’s web population, and Platform-A, which aligns AOL’s existing
ad operations.
Platform-A search product manager Richard Garrod says: “The market
for search engine advertising has matured to a level of saturation, and
consumer uptake has reached a plateau. This, for the first time, has
created a real struggle to deliver performance for clients. Up to this point,
it was easier for search marketers to convince clients that spend was
being managed effectively, because performance was increasing, seemingly
exponentially.”
Garrod adds that the search marketplace faces increased competition
as advertisers seek the best value in the places they display their results.
“Given the current economic difficulties,
search engine marketing
agencies who are unable to integrate
across the marketing mix may be in
for a rough ride. In addition, if ad
budgets are cut or companies go
bankrupt, the search industry will
have fewer advertisers, meaning less
competition and lower cost-perclicks.
Consumers are already gravitating
towards retailers’ value
offerings rather than luxury purchases,
and sites that offer cost savings
or price-comparison services
are likely to see an increase in traffic,”
he adds.
Advertisers now face a choice
On the go: Brands increasingly over where they go to place their
want maximum exposure via search advertising, since the Google Best
marketing on mobile and online Practice system, which offered
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