Watertown, Massachusetts – (The Hosting News) – September 13, 2005 – Search engine optimization outperforms pay per click advertising according to new market research published today by iProspect.
35% of organizations that outsource their natural search engine optimization and also participate in pay per click advertising – and can measure the ROI of each – recognize a higher return from SEO. This compares to just 11% of marketers from the same universe who report that pat per click advertising produces higher ROI.
The iProspect Outsourced SEO Metrics and ROI Study also discovered that one out of two marketers who outsource their natural search engine optimization, and who also participate in pay per click advertising, cannot determine which of the two search channels produces a higher ROI.
Other high-level findings include:
* 1 out of 7 search marketers measure the overall ROI of their combined SEO and PPC campaigns, but cannot separate the individual ROI of the two different channels.
* 42% of search marketers who outsource BOTH the management of their SEO and the PPC campaigns, find that search engine optimization produces a higher ROI.
iProspect President, Robert Murray commented on the findings, ”Three times as many marketers who outsource the management of their natural search engine optimization and also participate in pay per click advertising recognize a higher ROI from SEO than from PPC. Clearly, there’s something to be learned from that. I don’t think sophisticated marketers, and those familiar with the escalation of bid prices in the PPC marketplace, will be surprised by the finding that SEO produces higher ROI. However, novice search engine marketers may be.”
Murray explained, ”For those new to the search engine marketing space, it would seem logical to conclude that based upon the vast number of marketers participating in pay per click advertising that it would be a more lucrative channel than natural search engine optimization – which is known to involve a lot more work. But, the numbers speak for themselves.”
The study also revealed that 45% of marketers who participate in both natural search engine optimization and pay per click advertising cannot determine whether SEO or PPC provides a higher ROI.
”The fact that organizations continue to invest in search engine optimization and pay per click advertising without being able to measure the ROI of each is alarming,Ã¢â‚¬Â said iProspect’s Director of Algorithmic Search, Dr. Naga Krothapalli. Ã¢â‚¬Å“And it has important implications. Most importantly, if an organization cannot determine the ROI of a medium, how can they justify continued investment in the channel, to say nothing of increasing that investment?”
For further information, please visit: www.iprospect.com.