Less Ad Spending, But More SEO

7/24/2009 by Jack Burnett

3 Reports came across my desk this past week that I think confirms the importance of search engine optimization and search engine marketing for companies participating in the manufacturing value chain.

I read that a Forrester report confirms what we have been hearing for years.  That is, interactive marketing is increasing in the United States.  In the "Five-Year Interactive Marketing Forecast Report," Forrester Research projects a 17% compound annual growth rate (CAGR) for interactive marketing spending over the next 5 years in the United States.

Search Engine Marketing is expected to grow by a 15% CAGR, making up more than half of all the interactive marketing dollars.  Forrester estimates that Social Media and Mobile marketing will have the greatest growth rate, albeit, starting from small amount of dollars spent.

It's interesting that the second report, the "Global Entertainment and Media Outlook: 2009-2013" report from PricewaterhouseCoopers estimates that the total ad spending in North America (US makes up 94% of North America in study) compounded annually will decrease by 1.6% in the next 5 years.  So while the total amount of money for advertising is decreasing, the percentage of that total spend for interactive marketing is increasing.

Small and mid-market companies with limited marketing budgets should take note of the overall trend.  People believe that search engine optimization and marketing should play a major role in generating leads and sales.  In [x+1]'s "Search Engine Marketing in 2009" report, 60% of the senior-level SEMs surveyed were using SEO for lead generation. Especially, in this economic situation, search engine optimization can be the most cost effective method for small and mid-market manufacturing firms.  It has the greatest reach, working all the time, at a low cost.

Be careful though; SEO/SEM requires research, a thought-out strategy, and monitoring to be effective.  In the "Search Engine Marketing in 2009" report, only 20% of respondents expected their search engine marketing to perform better than 5 on a scale of 1-10 this year, 10 being most succesful.

TwinEngines builds websites with content management systems as the foundation for managing SEO content.  We help companies leverage that investment and create an effective SEM program to meet the business goals and objectives.  For small and mid-market manufacturers, we offer a continuous program approach to monitor and respond to changing conditions.  It is a very cost effective program with demonstrative returns on the investment.

Click here for an overview of SEO tactical basics.

 

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