The last time we checked the news, we were still in the midst of a major economic and financial recession. Pundits and politicians can try to claim otherwise, yet those of us in small business continue to feel the ever-present crunch of declined spending and non-existent sources of capital. Yet, some interesting news has come across my desk that makes my jaw drop.
I picked up this story from the folks at Mashable ,where you can read the full story. The scoop details information that was accidentally leaked in some documents from Google, showing how much major advertisers are spending for Google's Advertising solutions. The figures are significant, as one would expect for an organization and revenues the size of these companies.
Some of those that jumped out at me were:
- BP Spending $3.9 Million, in contrast to spending only $57K the two months before the spill
- Amazon's expense of $5.89 Million, although they are one of the most known online stores in the world
- ADT Security invested $2.19 Million
Note, these stats are all as reported for single-month spending, during June 2010.
Many of you will never spend that much to market your business over its entire lifetime. That's OK. However, there are a few things we can and should learn from these huge expenditures.
BP was willing to do virtually anything following the Gulf Disaster to keep itself in the news with positive branding. One could surely question whether this investment was a wise business investment. If they instead chose to spend $3.5 Million of that money directly helping those affected by the disaster, they very likely could have generated far more positive press.
However, we should all take note than Online Marketing, specifically Paid Search (SEM) has a useful place in the realm of Public Relations and Brand Management.
Amazon is arguably the most well-known online brand outside of the search engines themselves. Virtually any web search for a book, and now most products, returns a listing from Amazon in the Organic (Free) rankings. Many companies fall prey to the belief that an expense in Paid Search is only necessary when not appearing in the Organic/Natural search rankings. I cannot state emphatically enough, this is not the case.
Paid Search Marketing and Organic Search Rankings are complementary, not mutually exclusive. By appearing in free and sponsored positions, consumers' trust increases, and success skyrockets.
ADT seems a very interesting story, given their position and market. ADT, a division of Tyco, could easily focus their marketing investments on more traditional sources. You probably remember the days of receiving mailers offering a free security system, or receiving a phone call offering a free system installation if you just put a sign in your yard. There is still some of that, but I suspect the investments in those programs have declined.
These are just my suppositions, but it appears ADT is making a wise decision to invest in the area where their potential customers are spending their time, and perhaps feeling the need for security. News consumption on the web continues to grow - and with that comes greater awareness of the safety concerns for individuals and families. While that home invasion in Colorado is quite far from your couch in South Carolina, emotionally readers are reminded of the dangers in their area. So, by investing in search marketing, those consumers who might now be thinking a bit more about their home and family safety are more receptive to their message.
Make sure your investments seek out customers where they are, and when they are likely to purchase. Continuing to do the same old thing that "always worked" will cease working over time, necessitating agressive attempts for new channels of marketing.
What are you doing to capture customers through Search Engine Marketing?