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In the Click

Want all the right people to notice your business? Then you need to make the most of today's hottest marketing method--search engine optimization.
By Catherine Seda

You can't resist the temptation. Fixated on your computer screen, you anxiously type keywords relevant to your business into your favorite search engine. A list of search results appears. You cringe as you spot several competitors, then grumble because your company's Web site is nowhere to be seen. Where is it? That depends. Where is your search engine marketing strategy?

Gone are the days when adding keywords in meta tags to your site produced rankings. Search engine marketing has evolved into a complex and competitive program. It's also profitable -- according to a March 2003 report by Piper Jaffray senior research analyst Safa Rashtchy, online search is the most cost-effective direct-marketing method. The average cost per lead from search is 29 cents, far less than e-mail (50 cents), the Yellow Pages ($1.18), banner ads ($2.00) and direct mail ($9.94).

Gather your Web design and marketing staff; both teams are required. Understanding search engine marketing basics will help your team execute a strategy in-house or outsource it to specialists. The sooner your site is visible for relevant keywords, the sooner future customers will find your company.

How Do Search Engines Work?

Many business owners are unaware that search engines feed their results to each other. For example, if you type a keyword into MSN Search on Microsoft's consumer information and entertainment site, the Web site listings displayed could be from Inktomi, Microsoft or Overture. Overture provides search results not only to MSN Search, but also to AltaVista and Yahoo! Could a top site on Overture then appear as a top site on a distribution partner's site? Yes. Unfortunately, these distribution relationships change frequently, making it difficult to determine exactly where results come from.

The challenging part, however, is figuring out how to land a top position in the search engines. There are two complementary yet completely different types of methods: optimization and advertising.

Search engine optimization (SEO) refers to enhancing your Web site design to make it more appealing to crawler-based search engines. An automated robot, also referred to as a spider, is sent out to crawl the Web looking for site pages to add to the search engine's database. A mathematical algorithm then determines the ranking of pages in the database for the keywords consumers use. These rankings are referred to as natural or organic listings.

Search engine advertising, on the other hand, enables you to buy listings for your keywords. Positions achieved this way are referred to as paid or sponsored listings. The most popular program in this category is pay-for-placement. These programs typically allow advertisers to open an account for $5 to $50, then bid on keywords for a minimum amount of 5 or 10 cents per click. Advertisers outbid each other for a higher position by increasing their bids by 1 cent per click. Only when a consumer clicks your listing is your account debited.

Are you disappointed to learn that search engines don't magically and objectively find the "best" sites on the Web? That's understandable. However, it was always possible to influence search results. Today, it simply costs more. Yet, for companies willing to invest the time and money, it's well worth it. The plan begins with the right set of keywords.

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