What’s Better: PPC or SEO?

At SES Chicago, there was an interesting session in which a group of search marketing professionals debated the issue of which is better between PPC and SEO. Participants included Dave Naylor, Chirstine Churchill, Michael Gray, and Karen Weber, and Rand Fishkin.

Does PPC have more benefits than SEO? Comment here.

Churchill pointed to a study from Engine Ready on conversion rates by source of traffic (PPC vs organic). The study found:

- Conversion rates: PPC just barely beat SEO
- Average Order Value: Paid won
- Average time on site: Paid won

She gave the following as advantages of PPC:

- Gives immediate online presence
- Have a new site? Have ads in an hour
- Start getting ROI sooner
- No ramp up time
- Great for seasonal items or time sensitive promotions
- Great for testing
- Easily test effectiveness of new marketing message or site design change
- Quickly gather feedback
- Regulate traffic volume
- Sales pipeline empty? Use PPC to push traffic
- Overloaded? Pause campaigns or cut back spend
- Have limited sales season? Saturate market while demand is high

"PPC is very agile. It's also has targeting advantages," said Churchill.

For targeting, she says PPC provides opportunity for high visibility in multiple channels (search engines, content sites, mobile phones), expands results beyond search results, and gives you control over placement on SERPs and better control over landing page/message.

It's often easier to sell PPC to management because the concept is similar to traditional advertising, and provides for direct accountability. It's easy to track measures of success. It's an effective way to drive qualified traffic to your site, and it allows you to expand your opportunities.

Weber says the top five reasons why "PPC rules," are: speed, flexibility, it's unlimited, it's goal-driven, and it's controllable. You can quickly manipulate keywords to those that drive conversions, you can quickly change bid prices, and you can quickly get in and out of the market. You can turn your campaign on and off, and change ad copy, keywords, etc. You can target a much wider range of keywords, adhere to a budget, and have an immediate impact on sales.

Fishkin pointed out that PPC gets 10% of clicks, but 90% of spend. He said SEO is more challenging and less controllable, but the spend is there and the fact that people click organic results.

Gray said he believes that PPC could make SEO better, but Google is banning people now, so it makes things more challenging. Naylor said he believes SEO is more "open." Weber and Fishkin both said they would outsource PPC over SEO.

Gray said it's important to get in the top during the early part of the research phase, especially since Google is personalizing results for everyone now. Churchill noted that Google's personalization is a better argument for PPC. Like iEntry CEO Rich Ord recently noted, the addition of personalized results could "make people less reliant on organic search results for their traffic and in turn increase their use of Adwords."

Another point was brought up as we recently discussed - that the search engines are pushing organic listings down with mixed media (blended, universal) results.

Certainly there are many advantages to both PPC and SEO, and they can compliment one another. Actually, a recent study from a couple of NYU Stern professors found that organic search engine results can play a direct role in whether or not a paid listing is clicked.

Which do you think is more important - SEO or PPC? Share your thoughts here.

WebProNews reporter Abby Johnson contributed to this report.


Have You Read This?

> Does an Organic Search Presence Help Paid Result Performance?

> Can You "Rank" in Google if Everyone Has Different Search Results?

> Optimizing for Mixed Media Search Results

Maximum Website Promotion through PPC Bid Management

Tools for Internet Marketing have been rising to popularity these days because of cost-effectiveness and the possibility of measuring increase in profits and sales.

Pay per click (PPC) is a means to advertise business through the use of keywords/phrases in the search engines. The advertiser is required to only pay for each click that sends a visitor to his website. Search engines such as Overture, Google Adwords, Search Yahoo and Miva are just some examples of search engines. They offer top positions among the sponsored listings for particular keywords/phrases you choose. The idea for bidding is you have to buy/bid on keywords/phrases relevant to your business. The highest bidder gets to be on the top of the search result listing and the second highest bidder, of course, gets the next top listing and so on. Every time a visitor clicks on your website, you will have to pay the same amount that you bid on that particular keyword.

PPC can be very costly, time consuming and sometimes not worthy. But if you know how to go about the step by step procedures, PPC is a welcome change to traditional advertising.

If you do your searches for products, articles and auctions in the net, you usually type in a keyword or a set of phrase to guide you in your search. Either you use Google or Yahoo Search depending on where you are most comfortable at and where you usually get the best results. As soon as you key in the search button, immediately a long list of keywords or phrase will be displayed containing the keywords you key in. The first or the top link that you saw is most likely the one who bids the highest for that keyword you type. In this way, businessmen will produce the desired results; they get to be advertised, at the same time, saving and spending only for the clicks they need that might translate to potential sales.

The way to start PPC bid management is to identify first the maximum cost per click (CPC) you are willing to pay for a given keyword or phrase. CPC varies from time and even search engine to search engine too. Maximum CPC can be measured by averaging the current costs of bids (bids range from $0.25 to $5). Average of these bids is to be used as the maximum CPC to begin with. As your ad campaign progresses, the actual conversion rate (visitors turning to potential buyers/sales) will be determined and you may have to adjust your CPC (bidding rate) accordingly.

When you start to bid, see to it that you adopt different bidding strategies for various search engines. Search engines have their own PPC systems that require different approaches. It is also worthy to identify different bids for the same keyword phrases in various search engines.

Another thing, it is wiser not to bid for the top spot for two reasons: 1) It is very expensive and impractical, and 2) Surfers usually try different search queries in various search engines before they settle on the right one that fits to what they are looking for. This hardly results to conversion. Try to bid for the fifth spot instead and work your way up.

If you are now going steady on your PPC biddings, it is time for you to develop your own bidding strategy accordingly. It is important for you to track down which sites bring the bulk of your traffic and identify the ranking of your paid ads. This will help your bidding strategy to be effective and you should also decide where you want your ad to be positioned. Usually your maximum CPC will limit your choices.

Bid gaps (e.g. $ 0.40, 0.39, bid gap, 0.20, 0.19, 0.18) occur when there is a significant price increase to move up one spot in the PPC rankings. It is best if you take advantage of the bid gaps by filling them in so you can save up your cents to other bidding opportunities. Often there are keywords worthy of lesser bids to get the appropriate ranking on the list and produce a good number of clicks and higher conversion rate rather than bidding higher but having a poor conversion rate. You have to put in mind that overbidding too is not good but rather the best position for the most effective bid.

Using pay-per-click bid management in promoting your website will only be successful if you take time building many lists across many engines and studying the performance of every listing. In this way, you can make the most value from what you spend in the bidding process. The key is to use the necessary precautions to stay ahead of the competition.

Bid Management Tools

In ensuring best results, you may use bid management tools. There are accepted and approved management tools that will help you in your bidding. They are categorized in two different types:

• Web based (services by monthly subscription) or,
• PC based (a purchased software)

Monitoring tools too may help in the tracking down of your keywords/phrases and search engines as to which among them often generate sales, overall and in relation to your cost per click. This is what you call return of investment (ROI) monitoring.

These bid management tools may include additional functions that may not get from online marketing tools that are readily available. Other tools can monitor competitor’s bids, produce reports for different parties and offer the ability to interface with multiple PPC engines. This is particularly helpful to those who manage more than a hundred keywords across several PPC engines to boost productivity and save time.

Pay-per-click bid management is ideal for the effective promotion of your business online without the hassles of draining your financial keeping too much. It is now fast catching up as a means used in marketing your goods and services to reach to as many consumers as possible.