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By chrisd on November 19, 2007 10:25 am
Posted in (SEO, Sales & Marketing)

Small and medium businesses with active websites most commonly generate traffic in two ways - through SEO, which is usually managed haphazardly and ineffectively, and with a PPC campaign, which is usually managed haphazardly and ineffectively. Whereas most articles about SEO and PPC discuss them separately or as comparisons, the purpose of this article is to help you use them together more effectively. You will find that using them together more effectively will help you use them more effective individually as well.

What SEO & PPC Do For You

SEO and PPC are both excellent tools to generate sales leads and help your business grow but each needs to be managed actively as your efforts in each area tend to lose their effectiveness over time when left unattended. Strategically, you can separate them like this:

SEO = long term, free, continuous traffic you can affect but not necessarily control. Effectively managed SEO usually has an excellent ROI, depending largely upon the online competitiveness of your industry or niche and how well you convert traffic into sales.

PPC = immediate paid traffic you can control. The ROI depends on how well you create your PPC ads, choose keywords, understand the dynamics of PPC bidding, and how well you convert your traffic into sales.

Using SEO and PPC Apart

Search engine optimization (SEO) should be included in your overall design and content generation strategy. It is your long term design strategy and the details of your SEO should be tweaked often. A site well designed for SEO will achieve placements near the top of many search engine results pages (SERPs) and thus generate free targeted traffic.

Pay Per Click (PPC) is a marketing method you can use to immediately generate traffic for any specific page of your website which makes it especially effective at generating sales for new products or for boosting sales for existing products. Beginning a PPC campaign is like opening the gate for the on-ramp of a toll road to your site on which you pay the toll for each traveler in hopes that many of them will buy something from you when they arrive at the destination (your landing page). PPC campaigns are also great for testing demand for new products before investing heavily in promotion of a website or product.

Using SEO and PPC Together

How you use your SEO and PPC efforts together depends upon how much online coverage you want for a given product and much time and money you are willing to spend generating your desired results. Generating the most profit from your SEO efforts and PPC campaigns requires knowing your positions in SERPs for each and how much traffic each is generating for you. This can be detailed work so you should focus on your most costly PPC terms first. Let’s walk through an example of using SEO and PPC campaigns together (or not). It is a simple example but I think it is the best way to explain the logic.

Orange You Bananas for SEO and PPC?

Let’s say you invented and sell orange-flavored bananas. They keep well for weeks and are completely shippable. Some of your customers quickly discovered that they make excellent smoothies and the requests for smoothie-related products is flowing in like crazy. You do a little research and find that people are starting to search for orange bananas smoothie mix. So, you decide to create and market “orange bananas smoothie mix.”

You optimize a new page of your site around this keyword and begin a PPC campaign on Google for the keyword phrase “orange bananas smoothie mix” on which you spend $20 per day and immediately receive sales of $300 per day. Great! Luckily, you are still the only seller of this product and because there is no competition for “orange bananas smoothie mix” you reach the number one spot on the Google SERP in only 3 days. Other listings appear but they don’t actually have much to do with smoothie mix or orange flavored bananas.

So, now you you have the top PPC position and the top free-listing positions. Curiously, your daily sales only increase $25 to $325 when you reach the top spot in the free-listings but you also notice that your Google expense drops to $8 per day. As a test, you pause the PPC ad and leave yourself with only the free-listing in the top spot. Your sales drop back to $300 per day but your marketing for that keyword is completely free. It is up to you to decide if you want the extra $25 in sales per day but in this case it is probably better just to stick with your SEO results and avoid the expense and hassle of managing the PPC campaign.

Tossing in a Monkey-Wrench

Two existing online sellers of smoothie mixes hear about your success and the popularity (and profitability) of orange bananas smoothie mix and decide to go after the same key phrase that has brought you so such steady sales. They each create content optimized for “orange bananas smoothie mix” and within days take listings two and three on the SERPs. Each competitor also begins a PPC campaign to take more traffic. Luckily, there are more links to your site because of all the blogger buzz around your interesting invention and product so you get to keep your number one spot in the SERPs (for now) but both competitors have two listings (one free and one sponsored ad). Your sales immediately drop to $100 per day. Ugh!

This means war so you un-pause your PPC campaign but because of the competition for your keywords your price per click costs twice as much as before so you are spending $40 day to be at the top of the sponsored ads. Your sales increase to $175 per day but it is tough to justify spending an additional $40 per day for another $77 in sales. You cut back your PPC spending and take second place. Luckily, the competitor in the number three spot was only willing to pay the minimum so you get spot number two for a bargain. You are now spending $22 per day for your PPC campaign and your sales settle in at $155 per day, which you can live with. In this case, keeping your SEO and your PPC campaign is better than using only one.

It’s About Attention

The more competition you have for a given product or keyword phrase the faster your positions on SERPs and paid listings can change. You can almost always end a sentence about your SEO or PPC positions with “for now.” Further, effectively managing how you use your SEO and PPC campaigns together requires you have excellent data and information about each individual concern - from competition to the profitability of a product and its impact on the sales of other complimentary. It takes work but using your SEO and PPC together effectively should help you maximize the ROI of your marketing budget and the sales of your most profitable items.

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18 Responses to “ Using SEO & PPC Together Effectively”

 
Daniel @ Daily Bits Says -- November 19th, 2007 at 2:49 pm

Usually I focus on PPC on the initial stages of the website development. I also start SEO from the beginning, but the organic traffic takes some time to appear.

 
khalid Says -- November 19th, 2007 at 10:49 pm

@Daniel, that is what you usually recommend to our clients. Although sometimes PPC is not an option if the terms are extremely competitive.

 
Strik3 Says -- November 20th, 2007 at 7:19 am

Very interesting article. I read it a few times and everything is worth considering when building a new website.
Thx.

 
Atlanta Business Law Says -- November 20th, 2007 at 11:38 am

Great post, very informative for people who have new sites and want more traffic. Keep up the good work.

 
Steve Says -- November 20th, 2007 at 12:40 pm

That is a very informative post. I know new sites are rough to get everything going at first. All the hard work does pay off though.

 
Stephen Da Cambra Says -- November 20th, 2007 at 11:43 pm

Chris,

Great post. We sometimes think od SEO as getting free traffic and PPC as paid traffic. I think the costs of successful SEO can be fairly significant when we consider the time and effort needed to generate content and traffic, etc..

 
khalid Says -- November 21st, 2007 at 12:19 am

Stephen,

you bring up a very interesting point. I agree with you, cost of SEO can be significant. It is also not a one time investment. It is the type you have to keep up with. Although if we look at it from conversion perspective, organic traffic converts a lot better than paid traffic.

 
Rami Says -- November 21st, 2007 at 5:23 am

More traffic would be a godsend for me. Although social bookmarking has been my main reason to success i would urge everyone to get involved with it. Great traffic and earnings.

 
Chris Denny Says -- November 21st, 2007 at 10:40 am

Khalid,

In my experience paid traffic converts better than organic traffic because the path from SERP to contact is controlled. That is, I can design an add that attracts who I want from a given keyword search and bring those visitors to a page with exactly what the ad said they would see.

Effective SEO requires an ongoing investment of time (at least) to stay ahead of the competition.

 
Toronto Restaurants Says -- November 23rd, 2007 at 9:33 pm

I know both of these tools are very much effective for the sales. We want to achieve the goal so that we have to think about the other thing also. Thanks.

 
lady Says -- November 26th, 2007 at 10:39 am

long post but truly informative.. thanks … i learned a lot..

 
USA Turtle Says -- November 28th, 2007 at 3:25 am

Thanks for the information, it gonna help to run the new site that i will be loading in few weeks.

 
Wireless Says -- December 5th, 2007 at 10:24 am

Nice post, I love reading large articles. Thanks

 
Hotel Says -- December 6th, 2007 at 9:47 am

Long and informative articles, it was nice to read. thanks for the post.

 
HDTV Reviews Says -- December 11th, 2007 at 6:51 am

SEO and PPC are 2 great tools. Could you please explain the basic Search Algorithm? I mean how it works and its effects on a website.

 
Idetrorce Says -- December 15th, 2007 at 5:52 am

very interesting, but I don’t agree with you
Idetrorce

 
Emmanuel Martinez Says -- December 17th, 2007 at 3:36 am

another interesting post! Thanks for your valuable information and it is useful for me as well especially I’m just started blogging.

 
tattoo removal cream Says -- February 22nd, 2008 at 10:02 am

WOW! great post and truly informative.. thanks for
this nice post. and i learned a lot from it.

 

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