By Year
01 Mar 2005
Financial Times
Unparalleled return from paid search
From Mr Nick Hynes.
Sir, It is ironic that Ian Saunders' letter (February 25), on the findings of our recent research into search engine marketing by FTSE 100 companies, betrays the same fundamental misunderstanding of the nature of it that the research itself sought to highlight, as well as betraying some confusion between paid search and "natural", or algorithmic search.
There is a vast difference between these two types of search. The tools available for paid search, if used properly, lead to levels of success and return on investment unparalleled by any other form of advertising. A rough analogy would be to compare the success of advertisements for toys placed at 3am on the BBC's coverage of parliament with those shown during Saturday morning cartoon shows.
This new level of sophistication in what is in effect a new blend of media planning and internet marketing allows advertisers to track exactly what consumers are searching for and align their marketing spend accordingly. Because this can be done in real time, the advertiser can alter its spend according to rapidly shifting demographic traffic volumes, providing a truly unprecedented level of control.
It is precisely because search engine marketing is complex and time-consuming that 64 per cent of FTSE 100 companies have not mastered it. It is not, as Mr Saunders suggests, because there is any fundamental problem with the technology. Indeed, our research shows that considerable progress has been made in the past two years and it is for that reason companies provide services to manage this process for them.
