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March 18, 2008

Balancing SEO and SEM

By Rich Devine | 0 Comments | Posted in in Search | Permalink

We're often asked how SEM strategy should be aligned with SEO. I usually respond to the question with another question or two, because the answer really depends on who is asking.

Is this the paid search manager who is trying to figure out ideal placement and bid strategy for keywords that already have strong natural presence?

Is this the SEO manager who is looking for keyword data to help inform her SEO efforts?

Is this an executive who owns the paid search budget looking for ways to cut costs where he thinks natural search ranking is already high enough?

Or is this someone really smart like a low-level, day-to-day search specialist who thinks that maybe, just maybe, there should actually be some alignment in messaging between paid and natural search results?

So before I answer, let me state that I'm thinking along the lines of our low-level search specialist.

Message Balance for the Funnel

When I discuss finding strategic balance between SEM & SEO, I like to think in terms of a purchase or conversion funnel. Customers reside at various states of the funnel -- likewise a customer's search activity is likely to differ depending on where they reside in the funnel. One way to balance SEO and SEM efforts is to use each respective method as a message vehicle for targeting different customers at different states of the funnel.

Generally we'll find a high volume of clicks for awareness related queries and traffic. Click volume and traffic then decreases as users move down the funnel toward a conversion or buying activity. Yet while volume decreases, the effectiveness of clicks and traffic increases.

Zaaz_seo_and_sem_funnel_6    

This is really important to consider as it relates to the messaging of both paid and natural search results. If your paid search result includes messaging that targets folks in the awareness and consideration states of a funnel -- such as "Learn about Ford Trucks" or "Discover the 2008 Ford Mustang" -- you can reasonably expect high click volume, high traffic, and commensurate click costs with relatively low performance for that ad.

But if you limit your messaging to specific calls of action that targets folks at lower states of the funnel -- for example: "Ford Mustang -- Search local dealer inventories today." -- you can expect generally lower click volume, and commensurately lower cost, but at a higher performance.

The magic really happens if you can align the messaging of natural search results and paid search results so that they compliment and reinforce each other -- addressing folks at all states of the funnel.

In an ideal world, where you have SEO and SEM visibility for the same search query, you'd like to balance messaging according to the graphic below. High performance, low click/cost traffic from SEM ads, and high click volume from natural search results, where there is no scale in click costs.

Zaaz_seo_and_sem_4

Keep in mind, this is an approach. It is a useful approach for messaging alignment, and certainly for finding cost efficiencies for paid search budgets. But consider what it means for your product and your message.

Getting Started

1. A typical challenge to this approach is getting buy-in from the different groups that manage SEO and SEM efforts. At ZAAZ we work with enterprise level clients, and while we always recommend managing SEM and SEO efforts in concert, by the same team --  we still find clients appealing to different groups or agencies for management of SEO and SEM efforts separately. But at some point up the ladder, there is a manager who who has responsibility for both. Preach the wisdom of a balanced approach, and allow the manager to encourage cooperation between different groups.

2. Discover mutual visibility between Natural and Paid results. Start by assembling a priority list of keywords, and then cross-referencing SERP visibility between paid results and natural results. You'll want to pay attention to average position across Google, Yahoo, and MSN for your paid results. For natural results, you'll want to pull rank reports for each publisher. Where you find mutual visibility on keywords, compare titles and descriptions for SEM vs. Natural results.

3. When comparing results that reside on the same SERP, think about the funnel, and revise your message accordingly. If you change meta-data like titles and descriptions, make sure you are conscious about maintaining whatever keyword strategy makes sense for that page. Remember to follow best practices for character limitations.

4. Measure your results from site side analytics and paid search reporting. Validate your assumptions for how traffic and performance should decrease or increase. Pay attention to your results, and use them to refine the approach on an ongoing basis.

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