Search Engine Optimization Blog and other cool stuff!

The fact that ”no one really knows” precisely how much market share Google actually has… is a bit like saying no one really knows exactly what the weather will be like in Los Cabos in January.   True true.   It might be in the mid 50’s, around 65, or it might be in the high 80s… either way I”ll bet you my winter boots that it will be much warmer in Los Cabos than in Chicago! 

The point is - Google is WAY out in front. 

We’ve all heard estimates as high as 85% but I’ve never seen data to back it up, though in some industries I’m sure there is evidence.   A cursory study of five of our clients (each with roughly equivalent natural placements on Google, Yahoo and MSN) revealed a range of Google market share between 51-66%.   Though this is a poor measure of total market share it is a relevant statistic and reveals the imporatance of optimizing for Yahoo, MSN / Live, Ask and Aol.

Hitwise (the most respected market research firm on the topic) recently published a press-release suggesting around 65% market share with Yahoo trailing around 21% (see release below or go to http://www.hitwise.com/press-center/hitwiseHS2004/searchengines200711us.php)

NEW YORK, NY - December 11, 2007 - Hitwise, the leading online competitive intelligence service, today announced that Google accounted for 65.10 percent of all U.S. searches in the four weeks ending December 1, 2007. Yahoo! Search, MSN Search and Ask.com each received 21.21, 7.09 and 4.63 percent respectively. The remaining 46 search engines in the Hitwise Search Engine Analysis Tool accounted for 1.96 percent of U.S. searches. 

At first glance there may seem to be an infinite number options to market your business on the Internet.  And while there are countless options there are only a few distinct strategies… four to be exact.

I will briefly describe each, in order of my personal preference which I believe is perfectly aligned with the effectiveness of each strategy.

1. SEO ( Search Engine Optimization) or as I sometimes like to call it “The Long Tail Strategy”

SEO is built upon the Long Tail Strategy.  You could say that SEO is the vehicle that rides on top of the “long tail” boulevard.   The Long Tail theory is now part of the daily vernacular of the web.  The theory was developed and popularized by Chris Anderson, Editor of Wired Magazine who coined the phrases as a way of describing how infinite demand  (picture a very very long never ending tail) can be met in the digital age with media suppliers such as Amazon, Itunes and Rhapsody, etc., where traditional bricks and mortar suppliers of media, books, periodicals, music where limited by shelf space and forced to cater inventory only main stream authors and musicians that appeal to the masses (or fat belly of the bell curve also known as “pop culture”).  Simple enough.

As applied to marketing, the long tail theory explains how businesses / customers can connect directly without relying on traditional “interstate like intermediaries” such as catalogs, directories or traditional stock-everything-you-sell retailers.  Fifteen years ago, an organic soap maker in Montana would have to develop rely wholly on retailers to sell soap, except for the one-off sale here and there from someone who happened by his business.  What I am calling the “the long tail strategy” allows this same organic soap maker in Montana to implement SEO and respond to people who are searching for “organic soap.”

Search Engine Optimization empowers small and mid-market business owners; allowing for previously impossible levels of efficiency and precision in attracting and communicating to prospective customers.

Another aspect that is deeply intriguing about Chris Anderson’s analysis of the web is how infinite taste is, when unfettered by the limitations of traditional producers / retailers of goods, services and media.   Something all budding and seasoned entrepreneurs should be reminded of… in the digital age, the challenge is finding a niche and delivering value to a specialized audience / customer base.  Success for business men, film makers, artists, authors, musicians no longer requires that one scale the corporate ladder (or break into Hollywood’s very narrow line of vision) or crack the code of mass culture.

Embedded in this theory, of course, is the assumption that people use search engines which allow them and empower them to “go off road” in search for precisely what they are looking for.  If traditional directories were elevators, or train cars (vertical / horizontal search) search engines are magic carpets… allowing for infinitely precise search across many dimensions.   Consider that people may use search engines to find directories (indicating that directories are no longer a main conduit for behavior but no one (at least it is absurd to imagine) would use a directory to find a search engine.

For more on The Long Tail Theory Visit Wikipedia: http://en.wikipedia.org/wiki/The_Long_Tail

For more on SEO visit Wikipedia: http://en.wikipedia.org/wiki/Search_engine_optimization

#2 Lead Generation

In short, lead generation is a form of web marketing (and traditional marketing) that qualifies a prospective customer for a supplier/vendor while simultaneously providing passive value to the prospect, typically in the language of “access to a qualified network of vendors for free.” There are countless niche examples across many industries. Legal Match comes to mind for the legal industry and Service Magic for general contractors, plumbers, painters, roofers, etc.  I have seen lead gen work, however there are some inherent drawbacks to the service. For starters, the prospective client typically must fill out an in depth questionnaire, which limits reach as not everyone is willing exert the time, or be willing to disclose information; though you could argue that the step eliminates casual shoppers and refines a set of prospects who are serious about resolving a particular need.   Of greater concern, is the fact that a lead that has been generated is never, or I should say… rarely… exclusive, or passed on to the most qualified vendor. Rather a lead is sent forth to many vendors who are then given the opportunity to contact the prospective customer. You could argue that this diminishes the value of the lead (from the view of the business / supplier); and could  be potentially misleading if a prospective buyer assumes that the most qualified (based on presumed customization of their need to a particular skill).  That said, lead generation services can be very effective, I merely believe they are a distant second to the effectiveness of implementing search engine optimization as a web marketing strategy.  S

For more on Lead Generation visit Wikipedia: http://en.wikipedia.org/wiki/Lead_generation

#3 Directories

Directories are familiar.  We all grew up with print directories, yellow pages, etc.  On-line, this strategy includes a wider range of options: open source directories such as Craigslist, free or paid on-line classifieds, aggregates such as Ebay, Amazon, etc., and pay-for-access directories such as Angie’s List. The value is directly related to two factors (and this rings true for all Internet Marketing) usage (and usability) and content. If a directory has only a few listings — will anyone use it?  No.  If no one uses the directory, is a listing valuable?  There can be tremendous value in listing your business in a directory if and only if the directory is reputable, user friendly and receives volume usage (also known as eye balls, searches, hits, traffic, impressions, etc.).  However, there is danger in being listed as one of many and failing to distinguish yourself in large directories, getting “lost in the shuffle.”
For many reasons, SEO is superior, that is assuming that people are in fact utilizing search engines like Google in greater numbers for the particular good or service you provide, than the leading directory that may be the industry speciality.  But even then… numbers can lie.  Would you rather be 1 of 523 vendors listed in a directory that gets 10,000 searches a month, or ranked on the first page of Google in the organic results (1- for 1,000 searches a month?

#4 Paid Placement (Ad-words, Banner Ads, Pop-ups, etc.)

Paid Placement is far and away the most abused form of Internet marketing, that said… it can be effective.  An ad-words campaign on Google, is relatively effective… but not as effective as a natural SEO campaign.  That could change, if Google were to phase out the real estate devoted to natural results (which I don’t anticipate happening given the fact that their business model relies on natural results, even if their revenue model does not).  There are many factors to consider when evaluating paid placements — is the ad intended to reinforce a brand?  Generate initial interest in a new product or concept? Convert casual shoppers by offering a sale?

More importantly, what website, and where on the site will the ad be purchased?  ESPN is a better site to purchase a pop-up ad, promoting a male-focused product… but is the pop-up ad on the first page, will it be viewed every click,  every 20th click, or will it pop up only on a back page that caters to NBA fans, in the middle of summer (hint NBA fanatics/weirdos and much less traffic than the home page).  More-over, the local FOX News Channels web sports page in Green Bay Wisconsin may be a better buy than ESPN for a Wisconsin Medical Spa offering hair replacement treatments catering to men… for many reasons, the fact that Packer’s fans bald prematurely may just be one of the many reasons.

The point here is to measure and determine good better best, and do so by using a cost per 1000 measurement.  What does it cost to communicate to 1000 individuals, over the contract period for the ad?  Likewise, use common sense… does your target audience use the site? Can you pin-point whether they are looking for you, and the ad makes you more visible (such as with Ad Words) or are you trying to generate / create a need? The value of paid placement is based on cost vs. the benefit of the resulting exposure how often the ad is seen, and should be, like any form, measured obsessively.

Summary / Conclusion:

Regardless of what strategy you implement ask questions, demand data, make comparisons, try to determine the behavior of your prospective audience, ask your friends and family how they would search for you.

If possible demand proof, demand exclusivity, ask for testimonials.

SEO is easy to measure and track; furthermore it is intuitive to determine who your audience is, because they are looking for you.  Lead Generation has it’s advantages and disadvantages, remember that you and your competition will be receiving the same leads.  Directories are the oldest form of marketing known to the modern world, but have will they survive the digital age, so far few have successively migrated to the web.  Directories that aggregate information and have rich local content are phenomenal for certain kinds of transactions, poor for others.  Would you look for a Lawyer on Ebay?  A Hotel in Paris on Craig’s list?  Probably not… you might look for a house-swap on Craig’s list and a Lawyer on Lawyers.com.  But is this superior to optimizing a site to show up when someone searches “Patent Lawyer Boston” or “Hotel Paris” on Google?  I think not.  Lastly, be aware of what your buying with Paid Placement — are you buying it for vanity, branding, or is there quantifiable proof that the premier placement makes you the obvious choice ahead of your competition?

It all things, remember that everything on-line can be measured and quantified.

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The YP industry exists beneath most peoples radar, as it’s not nearly as sexy as TV or Magazine advertising. Nevertheless, is estimated to control more than 25 Billion in local advertising revenue: a chuck of change that digital search companies like Google Yahoo and Live as well as SEO companies like The Search Engine Guys are jockeying for as people continue to migrate away from print media to digital search.While large YP companies such as RH Donnelley (currently the largest Yellow Page company in the US) www.rhd.com still trade above $70 a share, their stock performance may not be the best indicator of their future. I would argue that it has far more to do with consolidations, acquisitions and internal efficiencies, and insanely high margins (good management in short) than projected growth.

Simply look at your local book — and notice that it has shrunk in size. Though in many cases, the YP industry has been able to maintain the appearance of “lots of content” by including filler content often local art or filler ads for other YP services on the individual pages, not to mention the extraneous shopping guides, golf guides, maps to museums etc. More noticeable many YP books now cover a much larger geographic scope than they did 10 years ago. Often a book will cover a whole county now, which was once covered by 3 or 4 city directories, etc. The pitch to the small business owner might be — more turf for the same buck.

But come-on is that real growth? Not in my book.

Bill Gates - founder and Chairman of Microsoft made a hefty statement in an interview this past May (simply search “Bill Gates Yellow Pages” and you can find the article in 5 seconds) when he claimed that, “Yellow Page usage amongst people below 50, will drop to near zero over the next five years.”

And while Bill Gates was discussing the future of live.com (formally MSN) and his statement could be taken as evangelism for his cause, it is very safe and reasonable to see that the future of the yellow page industry is in decline and not positioned for growth.

A few factors:

1. The Yellow Page Industry thrives on two things: usage and content.

2. Usage in decline — without question, I saw it with my own eyes over from 2002-2005. As broadband access increases, access via smart phones, more people rely on search engines for information than on the Yellow Pages.

3. Content in decline - As fewer businesses choose to ante up for display ads, content declines, as content declines so does usage. A classic chicken-egg relationship, the impulse to pick up the Yellow Pages gives way to reluctance the minute you can’t quickly find what your looking for.

4. Availability - Next time your in your own (or neighbor’s) kitchen or home office, do a quick scan for a copy of the yellow pages. Is it easier to go on the web?

5. Markets - Most trends begin in large metropolitan cities then move to smaller markets. We saw the YP industry begin to hemorrhage in places like Chicago and New York long before the suburban markets, and smaller tier 2 or tier 3 metropolitan cities like Cleveland or Milwaukee. In some markets, the YP industry will remain strong for years to come. In others, it’s long past the hemorrhage stage.

6. Age Demographics - Bill Gates honed in on age as the predominant factor. Have you met anyone under 20 who has ever used the Yellow Pages? That said, the meaty belly of the population bell curve is still the group between 30-75 in America. The boomers and their kids- where the money in America is. This group clearly uses Google. The trend in this group is not back toward the Yellow Pages, but toward Search on Google, Yahoo and Live.

7. Obscurity of the search - Still to this day, if I am looking for something very obscure (say a hardware store in a certain part of town, or a shoe repair shop) I will first search on google, then if I can’t find what I’m looking for, I will pick open the Yellow Pages. Again, the growth trend will not be back to the YP, but rather toward Google & Co. That said, there are business types that have not shifted to digital search and until they do, there will continue to be some value in the content and the usage in the YP industry.

8. Additional factors -With digital search you can receive loads more information than you can receive in a static print format. You can quickly determine which store is close to home, which plumber is nearby, etc., you can more readily educate yourself and evaluate dynamic information about the product or service you are considering. Think of a ticket broker for a sports game — in the YP era, ticket brokers would jockey for placement in the Yellow pages hoping for a phone call. Now brokers can list tickets online, display prices and manage inventory electronically — drastically reducing their overhead while creating a more efficient internal market, where they can measure and better predict how to position their future ticket purchases. The end result — it is more efficient for a ticket broker to direct buyers to their website. The phone call interaction may still prove effective as the interaction may still be preferred by the buyer… but the point here, is to establish in principle how much more effective and efficient a dynamic website is, for this particular business type, than is a static display ad in the Yellow Pages.

In conclusion - there may still be value in the YP, the question is how much? and for how much longer?

The best litmus test is to test it for yourself. Look at the numbers. Think objectively about how people search. Broad strokes do you think your neighbors and friends, colleagues and aunts would pick up the yellow pages or go online to find your business? Do you think online directories are valid? Or would you rather put your website in front of the largest pool of savvy buyers (people who use digital search).

The nice thing about the digital world is the availability of data.

Test it for yourself.

You can very quickly determine and compare how people are searching online.

Go to Aaron Walds site: www.seobook.com and use his free key word analysis tool, or pay for a subscription to Wordtracker.com. You can quickly determine search trends and estimated search volumes for particular phrases and variations online.

Then ask your local yellow page company to provide stats (they can do call tracking numbers, but might not be inclined to share the results) for your business type.