The Budget: The average lifetime value of a customer is $450. You know that the average purchase is $35. The business makes 20% profit on all sales. Most returning customers buy once a month. Your current monthly sales are $16,000 with a slight increase when seasons change. A steady increase in sales over six months to a 15% increase by month six would mean a total sales increase of $8,400 over the six months and a total lifetime value of around $30,900. Spending $3,000 on the six-month organic marketing campaign would see a return on investment of 106%. The advantage of organic marketing is that it keeps working even after the campaign has ended. This means that the ROI would actually be higher.
Small business owners sometimes think that search engine marketing (SEM), also known as pay-per-click advertising (PPC), is not lucrative option for them. They may think they can’t afford it, or that their online presence is not important if they are a local or service-based business. The truth is, as search engines have undeniably become a part of our lifestyles as consumers, there are many ways to leverage them for businesses of any size. This post will introduce you to the basics and benefits of search engine marketing (SEM).
Marketing strategies have evolved over the course of time. Back then, organic search, when hit right on the spot, would give you the right amount of exposure that your business needs. Apart from that, it used to give you a better deal at a lower cost compared to when you do pay per click. However, with the digital age coming in and small businesses are starting to become popular, they are now mostly leaning towards the fast-paced wonders of paid search.
Your keyword research will determine whether or not your search optimization effort will be a success or a failure. Many businesses make the mistake of basing their keywords on just the search volume. This often leads to attempting to rank for keywords that are very difficult and costly to move up, or even keywords that aren’t “buyer” keywords and just send useless traffic to the website.
An organic content marketing system is customer-centric, focusing on giving your customers an improved online experience. You aren’t paying for your place. So, you need valuable content that provides answers to questions, and highlights why you have the best solution. If you establish yourself as a good source of essential content, you build an engagement with customers. And, in turn, you build your brand. But this type of marketing requires time and effort, and a good system is essential to reap rewards.
For example, you may repurpose your blog content into a different form to satisfy the needs of your social media audience. You may decide to put more resources into email marketing as a traffic driver. You may tighten up your brand story because you want your messaging to be more congruent across all customer touchpoints. All these marketing tasks are tied to organic traffic. And they all have a substantial impact on your bottom line.
Pay-per-click (PPC) campaigns generate paid traffic. The goal of running a PPC ad campaign is to increase visibility of and traffic to your website by showing up in the paid search results – you can identify ‘paid’ results easily as they are brief advertisements separate from the organic results. These ads are prompted when a user types in a relevant keyword into the search engine.
Nathan: You’ve mentioned status updates. One of the things I’ve been doing with the podcast is creating a video introduction. It was last fall that LinkedIn started having native uploads of videos. And I’ve been noticing anywhere from 2,000 to 3,000 views per post that I upload, where nobody was checking out my videos or status updates when I was doing it in the past. That might be something people think about, too, is adding the video element into their thought leadership post or their status updates. What are your thoughts on that?
People are more receptive to hearing these marketing messages because they are more natural and organic. They’re not paid for and stuffed in their faces through interruption marketing. An indelible experience has intrinsic emotional and psychological value, as people enjoy it. They then feel emotionally compelled to share their experience with others that they have a close relationship with as part of relating, so that they can share in the emotional experience too. This is done through conversation, phone, text, email, Facebook shares, Tweets, and the like.
Cost and Sustainability. While it’s not totally free and easy, SEO can be more cost-effective in the long run as it will give you a targeted and relevant results that you are aiming for your business. With regards to sustainability, even with the smallest of a budget, you can still develop a plan that will still give you the quality of results and still keep the traffic that your business is getting.
Additionally, there are many situations where PPC (a component of SEM) makes more sense than SEO. For example, if you are first launching a site and you want immediate visibility, it is a good idea to create a PPC campaign because it takes less time than SEO, but it would be unwise to strictly work with PPC and not even touch search engine optimization.
Kristine Schachinger has 17 years digital experience including a focus on website design and implementation, accessibility standards and all aspects of website visibility involving SEO, social media and strategic planning. She additionally specializes in site health auditing, site forensics, technical SEO and site recovery planning especially when involving Google algorithms such as Penguin and Panda. Her seventeen years in design and development and eight years in online marketing give her a depth and breadth of understanding that comes from a broad exposure to not only digital marketing, but the complete product lifecycle along with the underlying technology and processes. She is a well known speaker, author and can be found on LinkedIn, Google+ and Twitter.