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Search gets personal
As discussed at Search Engine Strategies San Jose, search engine engineers are working on artificial intelligence systems to learn user preferences by examining past search behavior in order to adjust search results based on that data. This would greatly impact and individualize search results.
The industry is also exploring ways to combine behavioral targeting with current search technology to better meet user needs and client advertising objectives. Claria (formerly Gator) is developing RelevancyRank, a search technology that ranks sites based on behavioral indicators gathered by Claria adware. Such indicators might be repeat visits, time spent on the site and user click rates.
Google could also measure these indicators through its personalization features, but behavioral data are not currently included in the Google algorithm. Claria claims that the major search engines do not show the most relevant sites in their top results because of this lack of behavioral influence in their algorithms.
Privacy issues become a concern as search engines accumulate more and more personal information on individuals. When search engines first came out, users were completely anonymous. Now, with the wide range of personal services offered (free email accounts, free desktop search, instant messaging, et cetera), there is the possibility that users may lose this anonymity. In fact, some search engines use tracking cookies to serve more relevant ads to users, claiming that no personal information is tracked. Policies on the use of personal data by marketers will be shaped by public opinion and perhaps even legislative action as personalization and behavioral targeting take hold in search marketing.
The ideal marketing channel
Consumers use search engines to quickly find information, research products and services, or to buy online. The most frequent user behavior besides email is search. Consumers are relying less on traditional media like TV and newspapers in favor of the internet. Besides the convenience and time-savings, consumers like to be in control.
With search, consumers are self-directed in finding the information they seek. To quote Kevin Lee, “Searchers are in a psychological sweet spot for marketers.” That’s true because most searchers are going to be receptive to a relevant marketing message when they’re on the hunt. Give them compelling, relevant content on your landing page, and you’re on the way to conversion.
Privacy is the fly in the ointment
Do online users object to constant pitches and privacy invasion? Yes and no. Consumers have consistently indicated in focus groups that they don’t mind seeing online ads if the products are relevant to their interests and the content they are viewing. It’s also a fact that consumers will agree to view ads in exchange for a free product or service. A recent Forrester Research study reported that consumers are willing to give up some privacy when offered adequate value in exchange.
On the other hand, consumers are tired of being inundated with ads everywhere they go. They are also concerned over the lack of disclosure when behavioral indicators are collected online. Consumers and legislators are demanding disclosure when behavioral data is collected, as well as an opt-out option. Consumers also want more value in exchange for their agreement to receive ads based on their online behavior. The demand for disclosure and control is coming to a head with HR 29 (Safeguard Against Privacy Invasions Act), which was passed in the House and is now in the Senate for committee review.
Consumers love control
Consumer-directed search behavior has tipped the marketing landscape toward consumer control and away from advertiser control. In fact, industry experts have suggested this is a paradigm shift that is impacting marketing and advertising. National advertisers and advertising agencies are adjusting their marketing plans to include more online advertising (including search) and less traditional media in the marketing mix because consumers prefer the convenience, immediacy, and user-control features of the web.
The search engines themselves are constantly evolving to keep up with user and advertiser needs in the burgeoning search industry. While Yahoo! has provided email and other non-search related services for some time, others are catching up. Google now offers Gmail (Beta), free desktop search, satellite imagery, video searching and Google Talk instant messaging. MSN is following suit, and AskJeeves wants to be “the fourth network of search.” Today’s search portals are much more than just a means to search the internet; they’ve become the marketing channel of choice due to SEM’s effectiveness and accountability.
The quest for inventory
With the wide scale adoption of search engine marketing by national advertisers and ad agencies, industry experts have pointed to the scarcity of quality internet inventory. Advertisers can’t get the reach with the web that they get with a broadcast prime time ad because there’s not enough inventory available on the SERPs. That’s one of the reasons for the rapid expansion of Google AdSense and Yahoo! Publisher Network.
Another way to expand inventory is through specialty and vertical search engines, which are gaining popularity. Vertical search engines provide listings on a specific niche or industry sector. Some are B2B trade portals; others are industry databases and directories for searching information on products and services.
Because vertical search content is more narrowly defined, the results can be a lot more relevant than the major engines for specialized needs. That’s because major search engine databases are too vast to provide relevant results for average users unfamiliar with advanced search techniques.
Search is a slam dunk
SEM revenues are rising faster than any other online/offline marketing strategy. Forrester estimated SEM would grow by 33 percent in 2005, reaching $11.6 billion by 2010. The total U.S. online advertising/marketing spend is estimated at $14.7 billion in 2005, a 23 percent increase over 2004.
To give you an idea of the power of search marketing, Yahoo! reported a 44 percent increase in ad revenues for the first half of 2005 versus last year. Google announced a 74 percent leap for the same time period. These two companies alone account for 48 percent of the U.S. online advertising spend. So how do you like them apples?
Paul J. Bruemmer has provided search engine marketing expertise and consulting services to prominent American businesses since 1995. As principal business analyst for Bruce Clay, Inc., he is responsible for strategizing and implementing business development activities. Bruemmer is a well-known industry columnist, having written articles for ClickZ, Pandia, MarketingProfs, iMedia Connection and SitePoint. He has also been a featured speaker at the Search Engine Strategies Conference and at ecomXpo.
