Then they invented the Internet, Google, and the search engine optimization was born!

Marketing people felt under the threat. Is SEO going to replace the need for marketing in general? Where we are today in the evolution of the online marketing is that the SEO is the key ingredient of most of marketing campaigns online.

Why SEO Marketing?

Why would I bother with SEO, when I can just purchase the traffic via Google AdWords? Both SEO an d PPC have their advantages. PPC is instant, and that’s why people love it! SEO is long term investment, and is far less transparent.

SEO Marketing is unavoidable if your PPC campaign cost is getting higher and higher. Historically almost every search keyword is getting more and more expensive. There is a point where a cost per click (CPC) becomes so big that it eats up all your profit of an online sale.

When SEO Marketing?

When CPC costs overflow! Your cost of sale should be (far) below your margin, so that there is some profit at the end. Your margin is not likely to increase, but with the cost per click rising – any business gets to the stage where the cost of the visitors is simply greater than the margin – in it becomes unprofitable business model. PPC is a short sighted marketing planning. SEO Marketing is what builds sustainable long term online businesses.

If your online business is depending on the constant flow of fresh web site traffic, your best choice is the SEO marketing. If you have a once off event, like opening of a new cinema, and you need to fill it for the opening night – PPC is your best friend.

Extremely expensive (CPC)
That is a sign of many advertisers biding for the keyword they think is important for their business. In some cases it might be just the two advertisers having their private price war.

Unexpected big drops (in CPC)
Some keywords show huge cost per click drops, and become cheep. That is mostly the result of the big player (the big AdWords spender or a number of them) leaving the marketplace, usually with their marketing budget all spend for the period, and the keywords CPC price drops drastically.

The overall size of the Irish PPC market seems to be shrinking during early 2009. Both Google AdWords and Google AdSense publishers can see it clearly. Recession is here, and is here to stay with us for some time. It is having the impact on the online marketing and the PPC budgets are suffering in this volatile market.

I only got the short sample but an interesting chart in it already about the Irish PPC market. It is the breakdown of the industries that people are using PPC most (Does it give you an idea what your next AdSense rich Blog should be about?). If you have the full copy of the whitepaper, I would not mind reading more about the PPC, so send it on!

Ireland Search Engine Marketing Report 2008
April, 2008

The research has been supported by the Irish Direct Marketing Association (IDMA) and the Irish Internet Association (IIA).

Table of Contents

1. About E-consultancy 4
2. About research sponsors 4
2.1 About ICAN 4
2.2 About Cybercom 5
2.3 About Interactive Return 5
2.4 About RingJohn 5
3. Executive Summary and Highlights 6
4. Introduction 8
4.1 Introduction by ICAN 8
4.2 Methodology and Sample 9
4.2.1 Methodology 9
4.2.2 Turnover 10
4.2.3 Business Sector 10
4.2.4 Is search done in-house or by an agency? 11
5. Survey Results 12
5.1 Budgets 12
5.1.1 Percentage of total marketing budget spent online 12
5.1.2 Breakdown of online marketing budget by digital channel 13
5.1.3 Search engine marketing budget split 14
5.1.4 Do you expect budgets to increase or decrease? 15
5.1.5 Search engine marketing spend 16
5.1.6 How much are search budgets going up? 17
5.1.7 Allocation of paid search spending 18
5.2 Objectives and effectiveness 19
5.2.1 Primary objectives from search engine marketing 19
5.2.2 Relative importance of paid search and SEO on brand 20
5.2.3 How digital channels rate for return on investment 21
5.2.4 Return on investment (ROI) from Search 22
5.2.5 Tracking return on investment from Search 23
5.2.6 Effectiveness of ROI tracking 24
5.2.7 Use of web analytics tools 24
5.2.8 Rising click costs (CPC) 25
5.3 Search Engines 26
5.3.1 Search engines used for PPC 26
5.3.2 Best search engines for ROI 27
5.3.3 Is dominance of Google a threat? 28
5.4 Search problems and issues 29
5.4.1 Paid Search problems 29
5.4.2 SEO problems 30
5.4.3 Availability of training 31
6. Market overview 32
6.1 Market valuation and growth 32
6.1.1 Key sectors 33
6.2 Market trends 34
6.2.1 Advertisers seize opportunities as market matures 34
6.2.2 Search advertisers get more savvy as competition increases 35
6.2.3 Polarisation between sophisticated and unsophisticated 37
6.2.4 Google dominates as other search engines fail to step up 38
6.3 Barriers to digital marketing growth 41
6.3.1 Slow uptake of broadband 41
6.3.2 Traditional mindset of marketers 41
6.3.3 Skills gap and lack of understanding 41
6.3.4 Lack of transparency in market 42
6.3.5 Other barriers 42