Traditional advertising has its place in marketing any business. In time to come, however, the balance of power will shift towards paid search engine marketing.
ClickZ News found in a JupiterResearch report forecasting the next five years in the U.S. paid search market that paid search revenues will outpace display advertising by 2010.
The category accounted for 34 percent of total online ad spending in 2004, or $4.2 billion in spending. In 2009, paid search will draw even with display advertising, with both bringing in around $6.9 billion. By 2010, paid search, including paid listings and paid inclusion, is expected to equal 40 percent of the online ad spend, or $7.5 billion.
And, here’s one that should be of no surprise given anyone who is familiar with the laws of demand and supply.
Cost-per-click is expected to increase from $.39 back in 2004 to $.58 by 2010.
To put things in perspective, being number one in paid search is not necessary for a successful campaign, regardless of your industry and competition. Instead of always targeting the top positions by being the highest bidder, a smart search marketer uses analytical tools and techniques to determine the best bid price relative to the return on investment. Just because clicks are cheap doesn’t mean one should be careless about it and throw money away. All too often, though, I see this happening with site owners. Search marketing is about the profitability of the campaign not an ego-trip. Be smart: test and measure your bids, positions, click-through rates(CTR), ad copy, and landing pages for best results.