What cost justification is there to pursue BOTH organic search engine optimization (SEO) and pay-per-click (PPC) advertising campaigns?

How can PPC be used as a planning tool for SEO?

What is the formula for ROI with organic SEO?

When comparing the performance of an organic search marketing effort to a pay-per-click, keyword-based advertising campaign there are a number of important factors to consider -- including how the two approaches can work together.

Depending on product or service specialization, price point, length of sales cycle and competition in the category, the source of search engine traffic -- be it from organically indexed search results or from sponsored ads vis-a-vis Google AdWords, Yahoo! Sponsored Search or MSN adCenter -- will vary in quality and quantity.

An estimable range for an average of ALL SEARCHES is that 60-90% of Web searchers click on primary organic search results over sponsored ads. In those instances, organic optimization will allow you to compete for the lion's share of the search referral marketplace. Of course, this will vary by category and by market.

The caliber or quality of the search referral can also represent a major difference between organic search vs. sponsored search results. The specific nature of the product is significant here. Does the sale require more in-depth knowledge or information than might be present on a landing page? Is the price or "offer" a major differentiating factor? Is timing or seasonality a factor?

Keep in mind that primary search results show up continuously, compared with the intermittent exposure of sponsored search ads based on a media budget, the maximum cost-per-click and the daily cap of the search media budget. Timing is also a factor. For seasonal campaigns, sponsored search can offer greater flexibility and immediacy in terms of delivery options.

How can PPC be used as a planning tool for SEO?

Using a PPC campaign as a pre-test for more extensive organic optimization is a tactic that can provide valuable feedback if pursued in the right way. To conduct a PPC pre-test the following four steps would apply:

Step 1: Prime your budget Your budget needs to be large enough to bring in enough traffic to "ensure statistically valid results." Depending on the category and the competition, that could be between $500- $1,000.

Step 2: Set your goals Your goals should exceed just bringing in conversions. You set goals for desired actions such as how many users fill out a contact form, how many phone calls you receive during the day or how many newsletter subscriptions you receive.

Step 3: Measure success Once your PPC campaign in finished you will have quantifiable data to measure its success. If you didn't meet the goals you set in Step 2, go back and make adjustments based on your data.

Step 4: Focusing on SEO By the time your PPC campaigns are optimized, you should have enough data to measure the effectiveness of your keywords and see what terms your SEO campaign should be focused on.

SearchWrite frequently sets up Google AdWords accounts for tactical, short-run test flights for SEO keyword testing. However, PPC should never be viewed as a substitute for SEO. No one can afford to miss out on incorporating SEO-savvy site architecture, content formatting and linking techniques that can only come from designing your site with SEO in mind.

SEO research can help you determine what tags you should be using, what you should be writing about, and what kind of site architecture and navigation you want to use. Working optimization into your design enables you to lay down the right framework for your site from the very beginning.

SearchWrite may recommend that you consider both SEO and PPC at the start. But never do one at the expense of the other.

Is there a way to estimate ROI on an organic campaign?

We have found that when achieving the top 3-5 rankings in the primary search results (those that come from either organic or paid-inclusion), you can conservatively estimate at least 10% of the total number of impressions as clickthrough traffic! Yahoo! claims that their "premium results," classified as the top 3 positions in sponsored search results generate twice as many (2X) clickthroughs as the rest of the paid listings on the SERP.

The formula for organic SEO ROI is the projected # of search results for a targeted keyword phrase x 10% CTR (x 30 days for monthly return).

How do we estimate the number of searches taking place for a targeted keyword or keyphrase?

A number of keyword measurement tools including Keyword Discovery by Trellian, the Yahoo!/Overture Keyword Suggestion Tool and Wordtracker.com offer a baseline for estimating total search traffic or keyword "inventory."

Considering Pay Per Click Search Engine Advertising

The biggest benefit of pay per click is the fact that it will provide you with an immediate boost of qualified visitors, lead and sales giving you fast results within just hours or days. In fact, a pay per click advertising program is your best option if you seek fast results and a good return on investment while you are waiting for your Search Engine Optimization (SEO) program to "ramp up."

Depending on your traffic goals, you can budget $100 or $100,000. Pay Per Click Search Engine Advertising also give you the added benefits of being able to quickly test your web site and track your conversion rates (leads, opt-ins, and sales) and turning keywords (visitors) on and off easily.

So, as a short term strategy pay per click gives you the clear advantage over SEO. But, the disadvantage is the cost involved. Depending on the market demand for your keywords and clicks, your PPC campaign can generate tons of traffic and can cost hundreds, even thousands per day. With various optimization strategies you can lower your costs, but over the long term natural search engine optimization will give you a higher return on your marketing dollar.

What is a formula for measuring ROI with organic SEO?

As results-driven, accountable direct marketing specialists, SearchWrite believes in purposeful, goal-oriented marketing.

We strongly advise our clients to employ and actively utilize Web Analytics Packages and to define Key Performance Indicators (KPI's) to measure the performance of any traffic-building campaign in real terms.

By setting measurable "conversion events" based on the desired activity or behaviors you would like your Website visitors to perform, a quanitifable cost-per-action and return-on-investment for your search engine marketing campaign can be achieved. Ask us for details.

Related Organic vs. Pay-per-Click Search Marketing Links:

Organic Search Marketing vs. Paid Inclusion vs. Pay-for-Placement >>>

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