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In nature, there are the Fibonacci
numbers. This sequence (0,1,1,2,3,5,8,13…) and the Golden ratio (Phi or
1.618034) derived from it occurs with amazing frequency and can be found
in flowers, the shells of mollusks, leaf arrangements and even the
proportions of the human body. I’m beginning to believe that search
marketing has its own naturally reoccurring ratio, and I’ve dubbed it
the 70/30 Rule.
I can’t help thinking that many of us are missing the boat when it comes
to search marketing. Perhaps not the whole boat, but 70 percent of it.
Every day, new research is coming out which points to there being a
vast, untapped potential in search. We’ve picked the low hanging fruit,
but there’s a whole tree full of rich marketing results that we have to
reach a little further for. And when analysts like Safa Rashtchy and the
gang at JupiterMedia point to doubling, tripling and quadrupling
revenues from search over the next 5 years, it’s based on assumptions
that marketers will figure out ways to better tap into the full
potential of search.
As I write, I know there’s a posse of irate search marketers who are
whispering “How dare he refute our expertise in this area! Low hanging
fruit, indeed. The nerve!” As back up to my observation, here are just 3
examples that come to mind of where the 70/30 rule seems to apply.
70% organic 30% sponsored
At little while back I was presenting a session at Search Engine
Strategies about balancing organic and paid search strategies. I had a
typical search results page from Google up on the screen. I asked the
audience which section of the page they normally look at first. Almost
every hand in the audience went up when I got to the top organic
results. This was no great surprise. From our research into search user
behavior, I was pretty sure this would be the case.
Then I asked who in the audience dedicated at least 30% of their search
marketing budget to organic optimization. A very few hands went up,
probably less than 3% of the audience.
Does anybody else see the disconnect here? This is not a new message.
Study after study has shown that about 70% of all search engine clicks
happen on the organic results. Yet sponsored search continues to take
the spotlight and the lion’s share of the budget, while for many,
organic optimization seems stuck as a little understood and even less
trusted tactic only fully utilized by online casinos and porn merchants.
Companies using search have to understand their consumers are going to
look and click on organic listings more often than sponsored, and you
can’t just ignore the fact. Yes it’s harder, yes it’s not guaranteed,
and yes it may require some changes to your site, but 7 out of 10 people
can’t be wrong!
70% researchers 30% purchasers
When is a consumer likely to use a search engine? When they’re ready to
buy? No! It’s when they’re researching the buy. And most likely, they’re
very high in the consideration phase, just checking out the competitive
landscape. This varies with the type of purchase, but usually the search
sweet spot is for a product where there is little familiarity, where
there is a significant amount of consumer research and consideration,
and where there is a lead time of a month or two before the purchase.
This is not true all the time, but it is true about..well, look at
that…70% of the time!
Driving consumers to a hard purchase conversion and leaving them no
other options is not going to be a successful online tactic for the
majority of your consumers. We have to understand the mindset of the
consumer when they’re likely to use a search engine. If you always aim
for the easy conversion, or the low hanging fruit, you’re probably
missing 70% or more of your market. Take some time to gain a better
understanding of the consumer and what they’re looking for. Adjust your
search marketing strategies accordingly. Extend your reach beyond the
low hanging fruit.
70% by luck, 30% by design
Recently, JupiterMedia released findings of an extensive survey with
search marketers. In it, they found that only about 25% (close enough to
30 for me) of the respondents actively used landing pages and other on
site tactics to increase conversion rates.
The majority of a search marketer’s time is spent in trying to influence
position on the search engine results page. This is true whether you’re
working on the sponsored side or the organic one. As marketers try to
squeeze more return from their marketing investment, there are three
points at which they can influence the ROI equation. They can reduce the
investment by intensive bid management or tapping into the organic
potential of search. They can increase click-throughs by extending the
keyword basket or improving their position on the page. And finally,
they can increase the conversion rate on the site by making sure the
search visitor is finding what they were looking for and that an
appropriate conversion path is present. It’s the last of these three
that offers the marketer the greatest degree of control, yet it’s the
one most often overlooked. Usually, we have complete control over what
happens on our own site. But often, we have never really asked our
visitors what they’re looking for. We haven’t tapped into the existing
(and extensive) body of knowledge on usability design when it comes to
websites. This is one area that could have huge payoff not just in
search, but in all areas of online marketing.
Fibonacci Redux
For each of the 3 examples of the 70/30 Rule I’ve given, I know others
exist. And I’m not sure that it’s wrong that marketers have previously
gone for the obvious wins in search. But I worry about the lack of
motivation to go after the wins that require more work.
We can’t move forward as an industry until we start doing the research
required to better understand the 70% of the market we’re missing. The
big winners in business have never been the companies that go for the
easy wins. They’re the ones that figure out how to pick the fruit that’s
just out of their competition’s reach. |