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>> Why Online Advertising &
Search Engine Marketing? |
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Why Online Advertising & Search Engine Marketing?
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| As apparent in many researches,
Search Engine Marketing is the most effective way of Online
Advertising. Search Engine Marketing has become rapidly widespread
since the online market is growing fast. Since early 1990s,
Search Engines have significantly developed and thus Search
Engine Marketing emerged. Businesspeople want to reach the maximum
number of people, and Online Advertising helps them achieve
that goal. Search Engine Marketing
offers very satisfying ROI and results are tangible. |
| Shown below are quotes from
researches conducted by Search Engine Marketing and Online Advertising
organizations. |
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1. Over 250 million searches each week in the UK.
(Source: Overture)
2. Consumers use search more than any other Internet application
except e-mail.
(Source: Jupiter Research report, Sept.
2002; eMarketer Interactive Marketing report, Nov. 2002)
3. 85% of EU users first discover Web sites through search
engines.
(Source: Graphics, Visualization &
Usability (GVU) Center User Study)
4. 70% of all e-commerce transactions originate from a search
query.
(Source: Forrester/IAB)
5. Search engines are the #1 way UK companies prefer to locate
new products or suppliers.
(Source: cited by 39% of respondents
Reed Business Information, January 2004)
6. In the brick and mortar world, customers find stores by
scouring through the yellow pages. On the Internet, over 85%
of people use search engines to find information.
(Source: Georgia Institute of Technology)
7. Using a search engine has become so popular that it now
ranks as the second most popular activity on the web. Only
email is more popular.
(Source: Jupiter Research Sept 2002)
8. 50.5 percent of searchers never looked past the first
search results page and only 29.2 percent made it to the third
page.
(Source: March 2002 Penn State study)
9. Over 85% of Internet users use a search engine.
(Source: Wall Street Journal)
10. IMT Strategies reported that a company's presence within
search properties is the most important factor in maintaining
high brand awareness -- more so than print, radio, or TV advertising.
(Source: Sales & Marketing Management
Magazine, January 2001)
11. Search engine positions are 2 to 3 times more effective
in generating sales than banner ads
(Source: NPD Group)
12. Search engine optimization was the top method cited by
Web site marketers to drive traffic to their sites (66%),
followed by email marketing (54%)
(Source: Direct Marketing Association) |
| From these, we
can see that Search Engine Marketing has very high potential
to grow even further and become more important in e-commerce.
Investors see the importance of Search Engine Marketing as an
effective marketing tool because more and more people rely on
Search Engines for information. Search Engines themselves are
evolving at an amazing pace to correspond to the demand. This
directly contributes to the growth of Search Engine Marketing
– world’s most targeted marketing tool. |
| Advantages of Search Engine
Marketing and Online Advertising compared to Offline Advertising
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Generally, brand building and public
announcement are done via leading magazines such as Fortune,
TIME, BusinessWeek and Newsweek which reach readers all over
the world. One question remains: do small businesses stand a
chance to do so? The answer: no. Advertising with those magazines
requires a lot of money, around 40,000 USD for one full page.
What are the traditional media
and what are their characters? |
1. Television
Its coverage might be extensive but is only limited in one country.
Because it offers both audio and visual aspects, the cost is
very high. For example, advertising during the prime time in
Thailand costs more than 350,000 Baht per 30 seconds. Global
channels, such as CNN and CNBC, charge even more.
2. Radio
Its extensive coverage ensures that anyone in the range can
hear what you have to say, but that’s where it ends. In Thailand,
advertising on the community radio costs 100 Baht per 30 seconds
and Bangkok-based radio stations charge 1,500 – 2,500 Baht per
30 seconds. This expense does not include spot production budget
which starts at 10,000 Baht, and if you specifically want celebrity
voice, they charge 5,000 Baht per 30 seconds. When advertising
on the radio, it has to be done extremely repetitively and even
so, the results are barely measurable. Also, if you wish to
reach the global market, you have to advertise in each country.
3. Newspaper
Although it reaches almost anyone in the country, it is very
expensive – 300,000-400,000 Baht per one full page. Foreign
newspapers such as the Washington Post, USAToday and New York
Times are much more expensive.
4. Magazine
Most magazines target specific readers in different fields
– computer, automobile, home d?cor, finance, golf and so on.
While it is good to be able to reach a specific target, the
distribution is usually local. International magazines are
extremely expensive to advertise with.
5. Billboards
Its coverage is limited and it costs more than 100,000 a month.
Location plays an important role in this kind of advertising. |
| Now you can see that traditional advertising
has limitations and effective ones are very expensive. Small
businesses should not spend so much money on advertising when
the results are still in doubt. Advertising
with major TV channels and newspapers are so expensive that
very few business owners in Thailand can afford to do so.
Only organizations that make more than a billion such as Thai
Airways, Tourism Authority of Thailand, and the Department
of Export Promotion are able to advertise with them. Search
Engine Marketing is the answer to smaller business owners’
pray because it reaches users worldwide. They can also specifically
target age, sex and location, as well as measure ROI in a
short period. |
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