SEO Versus Paid Placements: Which Works Best?

Online shoppers might not be very aware of it, but a lot of research, planning and action go into the area of placements on the Internet. One does not need to say anything much about the amount of competition that exists online; all you have to do is take a look around. Type a word into the search bar of a search engine and the number of results you get would probably be much more than you can ever use. And taking that into consideration, it is not a surprise that site owners put so much into figuring out if search engine optimization or paid placements work best for their site.

Over the years, as consumers are getting more comfortable with involving the Internet into their decision-making processes, they seem to be relying more heavily on the features that the Internet can offer. That is to say that the search feature on the Net is used a lot when online shoppers are looking for information. Previously, factors such as traditional advertising, catalogues and word of mouth all played important roles in consumers finding retailers. But the search option on the Internet has made finding new retailers and brands all the more easier. This increased use of the search function is a major factor is site owners deciding if paid placements or SEO is best for their site. Search marketing is an integral part of online marketing because that is one important way in which potential clients are directed towards your website.

One thing to keep in mind when considering the benefits of SEO versus those of paid placements is to look at where your consumers are coming from. A large number of consumers are coming directly to the site because they know the address already or have book-marked it previously. Paid searches, SEO, affiliates and emails are all other ways in which consumes are directed to a retailer's site.

Paid placements are gaining popularity in the Internet world especially because of the return of investments that marketers are getting from it. The costs for paid placements are increasing but the majority of companies still prefer to adjust their budget so that they can include the costs of paid placements.

In order to decide where marketers should invest their budget, it is important to know which search engine their consumers are using most. It would be futile to place a marketing message in a place where consumers are not looking. The Share of Search Activity (or SOSA) is the way researchers study if consumers use the same search engines for all their searches. This is, however, a very difficult thing to keep track of and there are a number of factors that influence the results.

At one level search engine optimization has an advantage that paid placement does not have. SEO is often perceived as being impartial because the link has been placed there because of quality and relevance instead of payment. Research shows that 70% of consumers click first on natural listings and only 30% click on the paid listings. The flip side, however, is that getting a high ranking on a good search engine by natural listing can take a lot of time. Something that you can get done immediately via paid listings might take months, or in worse cases, years to materialize. In that way, the marketer has a lot more control over the ranking and placement of the link when it is paid for.

One thing marketers need to keep in mind is how aware their consumers are of the Internet and the ways in which it works. Many searchers are not aware of the differences between paid listings and organic ones. But even those Internet users who are not aware of the difference between the two seem to click on the organic links to the sponsored ones.

Keywords are extremely important regardless of if you are opting for paid or organic listings. Marketers need to understand the way in with keyword search works and which words are most relevant to their site. Relevance is key, because it is pointless to have consumers who are looking for something else, directed to your site.

There is no one answer to the on-going debate about paid listings versus organic listings. Even though consumers tend to be skeptical about the validity of sponsored links, these links do give back as return of investments. Some marketers are of the belief that while SEO is best when someone is looking for information, paid listings work best if the Internet user is looking to buy something online.

Both paid search and search engine optimization are wise choices as long as you understand the ways in which they work. Of course, you also have the option of mixing both these kinds of listings and reaping the best of both. The main point is that marketers themselves need to be aware of their goals and which method best works for them and their consumers.

Article Source: http://www.articlesbase.com/ecommerce-articles/seo-versus-paid-placements-which-works-best-186538.html

Jeev Trika is a principal at azentec, Inc.,. an e-business consulting firm, based out of South Bend, Indiana. He possesses extensive experience in sales methodologies and holds over 9 years of experience in assisting organizations with their online experiences. His professional services have been garnered by organizations like IBM Global Services, Siebel, Jordan Industries, Cayman Islands Government, and more. Jeev holds a Bachelors in Computer Science and an MBA, both from Purdue University.