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MarketWise Report
The Current State of the Business-to-Business Marketplace


In this report:

Search Engine Marketing: An Overview

Three related areas of search engine marketing exist in the B2B marketplace today:

  1. Search engine optimization (SEO) for keyword phrases (also known as website optimization)
  2. Pay-per-click (PPC) keyword textbox advertising
  3. Keyword sponsorship text links
These online search engine marketing resources are proving to be some of the most cost-effective and measurable means today of generating qualified leads. Many Internet fads have come and gone in the last decade, but the one constant has been the desire of Internet users to quickly and efficiently find relevant and important information. In the early days of the World Wide Web when only a few thousand websites existed, hand-edited directories, like Yahoo.com, which began in 1994 as the first website of its kind, provided a concise listing and categorization of practically every website online.

As the Internet grew exponentially in the late-1990’s, robotic search engines, such as Alta Vista, Excite and Lycos, began to gain popularity because they were able to visit and index many more websites than was humanly possible. Then Google.com came online in September 1999 and everything changed.

Google’s founding engineers developed software robots (known as "bots" or "spiders" that "crawl" the Web looking for sites) and algorithms that accurately determined the relevancy of many more web pages than any other engine. As word spread about Google’s quality and quantity of listings, the Internet populace flocked to its site to access the most up-to-date and relevant database of websites that existed. Through its own website and its partnerships, Google now delivers results for approximately 45% of all Internet searches.

The Google Economy and the Big 3

The importance of Google in today’s business environment should not be underestimated. In the Information Age (referred to as the ‘Google economy' by the New York Times in December 2002), the single source for the most important global information wields a great deal of power. BtoB Magazine named Google the $1 business-to-business website and the $5 B2B ad property in any medium, online or off. The trademarked Google brand has become so pervasive in our society that it is now facing the prospect of becoming a generic term for Internet search. The pronoun Google is now also used as a verb, as in "Did you Google it yet?"

Google and its main competitors for supplying search results, Yahoo! and MSN, have leveraged the power of their multi-million daily users by selling highly targeted keyword sponsorships and pay-per-click (PPC) advertising to help businesses reach their best markets.

Google, Yahoo and Microsoft's very popular MSN.com website are commonly referred to as the "Big 3" search sites.

Website Optimization: No Tricks or Secrets - Just Acquired Knowledge

Website optimization is an art and science that has been misrepresented during the last few years. Though many people who make their living optimizing websites would tell you that they know all of the tricks to obtaining high rankings on Google and the other major search engines, no tricks exist to help you obtain the best rankings for your company’s most important keywords. Tricks will only get you permanently blacklisted by Google.

Successful optimization combines known methods of coding a web page (science) with a writing style (art) that integrates the results of extensive research (science) to determine the best keywords and phrases to target along with a compelling story about your expertise. Several other factors, including the number of other websites residing on your host server and the number of external links to your site can contribute to higher search engine rankings.

However, the most important, and frequently overlooked, aspect of successful search engine rankings is the contents of your website. One of the most amazing aspects of the algorithms devised by Google and others is the ability to decipher the contents of a web page and determine its relevancy to a particular keyword search. Another artful aspect of optimization is knowing what type of content is well-received by both the spiders and your site visitors. Likewise, knowing how to entice site visitors to complete and submit an RFQ is an important ability when writing and designing a website.

Pay-Per-Click Advertising Vs. Keyword Sponsorship

Targeted keyword sponsorship allows a business to buy an important keyword or keyword phrase. Every time someone searches for that word or phrase, the sponsor’s listing appears as a highlighted text link at the top of the Search Engine Results Page (SERP). This type of marketing can be very expensive - thousands of dollars a month for the most popular phrases - because you pay to be listed whether or not your listing is clicked.

Pay-Per-Click (PPC) advertising is a less-expensive means of selectively targeting an audience, but it requires bidding in an open auction to secure the top listings, which appear as highlight textboxes on the side or the top of a search results page. This type of advertising is fairly cost-effective because you only pay when someone clicks on your ad to view your website and you can set monthly expenditure maximums to fit your budget. You can also easily calculate your ROI with this program.

However, to maintain the top positions for your pay-per-click keyword or phrase, you need to constantly monitor the current auction prices and adjust your bid as necessary, which can be very time-consuming. Also, with the rapidly rising popularity of this program, the bidding price for popular keywords and phrases can go as high as several dollars per click, whether or not that click turns into a qualified lead or sale. In addition, a pay-per-click ad is subject to abuse by unscrupulous searchers and your competitors, which can be costly.

Sponsorship and pay-per-click programs have, in many cases, proven they are effective means of generating targeted website traffic. However, statistical and anecdotal evidence indicates that traffic generated by sponsored listings and pay-per-click text ads is a small percentage of the traffic produced by being well-ranked in the organic, free search listings - usually as a result of website optimization.

Whether To Optimize, Sponsor or Advertise - That is the Question

As a first step in developing a search engine marketing program, we usually suggest optimizing a company's website to obtain high search site rankings for their most important keyword phrases. This is the most logical first step because, if you later decided to participate in either a sponsorship or pay-per-click program, the site will be ready to deliver very specific messages to the tightly targeted viewers that click through the paid links to visit. The pages of an optimized website are developed with the intent of getting the viewer to take action - to make contact with you - before leaving the site.

Another reason we recommend optimization first is that the click-through rate for sponsored and pay-per-click listings is only about 10% of that for the top organic listings obtained through optimization (or by sheer luck based on its highly-relevant contents).

Because many B2B companies have several lines of products and services, and each line has many associated keywords and phrases, optimizing your website could eventually become a very large project. However, building the ultimate website does not need to be completed immediately in one phase. Research will determine the most potent keywords for your company, so your website can be optimized for the most popular keyword phrases first, followed by an incremental process of adding other potent keywords while maintaining and improving the initial optimization.

The Benefits of Website Optimization

The benefits of website optimization are both immediate and long-term. The immediate benefit is that your company will have a website that is a much better reflection of who you are and what you do. With the input of your sales team, the site will serve as a valuable selling tool for both the audience that finds the site via a search engine or the audience driven to the site via your other integrated marketing communications and lead generation tactics.

The next benefit that will result from optimization is that your site should, approximately four to ten weeks from posting, begin to achieve high rankings on the major search engines for your designated keywords. These high rankings allow you to occupy some of the most valuable real estate in the global B2B world – the first few pages of Big 3’s search results. Having achieved this goal, you should shortly thereafter begin to receive a stream of phone calls and emails requesting further information and quotes for your products and services.

The two main long-term benefits of optimization are: First and foremost, you will increase your site traffic and your responses from site visitors, which should lead to increased sales. Second, through increased site exposure and traffic, you will increase the awareness of your company and products within your targeted markets.

An additional benefit is that – because effective optimization requires a little continual maintenance – your website will be kept up-to-date and will grow to be an extensive and valuable resource for your prospects, customers and staff. An extensive website that establishes your company as the foremost experts in your industry, combined with top search engine rankings, will help your company attain a position as a leader and innovator within the industries you serve and amongst your peers.

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