SEO or PPC...or Both?

According to a new study by Engine Ready, based on traffic to 26 e-retail sites in a 12-month period that ended June 30, visitors who arrive at a retailer's site from paid search ads are 50% more likely to buy than those who come from clicking on a natural search link. The conversion rate from paid search is 2.03% versus 1.26% from organic search, according to the study as reported by Internet Retailer.

 

From Wikipedia:

Pay per click (PPC) is an Internet advertising model, used on websites, in which advertisers pay their host only when their ad is clicked. With search engines (SEO),  advertisers typically bid on keyword phrases relevant to their target market.

 

The current study is a follow up of a completed two year study in 2008 to identify the magnitude of any visitor behavioral trends based on traffic source in a way that could help marketers adjust their strategies to maximize value. Although there can be an almost endless number of individual traffic sources, notes the study, this study, identified and measured 4 primary traffic source categories that encapsulate all source origins:

• Organic listings
• Paid listings
• Direct access and bookmarks
• Other referrer  

Most likely to buy are consumers who navigate directly to a retailer's site by typing in a URL or clicking on a bookmark, as their conversion rate registered at 7.38%. Consumers who came to an e-commerce site from another site or an e-mail converted at 6.58%, the study shows. The overall conversion rate was 3.6%.  The study found that:

• Paid search visitors bought the most, with an average order value of $117.06 versus $109.27 for those coming from other sites, $106.64 for visitors from organic search and $95.29 from direct referrals, such as from a bookmark or direct entry of a URL
• Average order value for all retailers in the study was $104.21, down 31.7% from a previous Engine Ready study that analyzed data from a two-year period that ended December 2007. Retailers said average order values from all channels have declined in the past 12 to 18 months
• The average time on a site per visit increased 5.8% from the previous study to 4 minutes, 33 seconds. Consumers who navigated directly to a site spent 5 minutes, 8 seconds. The study found consumers who spent more time on a site were more likely to buy, but that their average order value was not higher than that of other buyers
• Site visitors on average viewed 5.2 pages per visit, up 15.6% from the previous study. Those who came directly or from other sites or e-mail viewed the most pages, 6.2 on average
• Average number of seconds on a page dropped 9% from the earlier study to 53 seconds, which could be a sign marketers are doing a better job of presenting information on their pages in a more easily readable format, the study says. Paid search visitors spent the most time on a page, 66 seconds on average.
• 43.9% of all visitors left after viewing just one page, down slightly from 44.5% in the earlier study. Organic search produced the highest bounce rate, 48.5%, and direct access the lowest, 39.2%
• Direct access produced the largest share of site visits (40%), followed by other referring sites and e-mail (27.9%), paid search (19.8%) and organic search (12.3%)

This study is based on an analysis of 20.8 million visits and 108 million page views to 26 e-commerce sites from July 1, 2008, through June 30, 2009. 21 of the 27 companies in the latest study also provided data for the earlier Engine Ready study.

 

For additional information from InternetRetailer on this report, please visit here, and to access the PDF fileof the 2008 study, please go to Engine Ready here.

FitBase Provides Valuable Information For Ecommerce Merchants

Many of our ecommerce clients at MerchantAdvantage have asked for additonal information to our white papers and client-side Webinars to make better business and online marketing decisons.  We all know that there’s a lot of information out there – google search, MSN search, Yahoo! search, blogs, industry websites, white papers, even newsletters -- which MerchantAdvantage also sends out each month. 

Okay, all of this is good. After all, knowledge IS power.  But what about too much knowledge?  Having so much information that it is all white noise?  The real question is where do we find the "right" information easily that we can act on today.  Albeit, how do we make heads or tails of the abundance of data available to anyone with an internet connection?

Well, friends of eTaildTail at FitForCommerce have pondered those questions – and have come up with a great answer: FitBase.  

In addition to their core eCommerce consultancy business, they have launched an online knowledge base of all things eCommerce. Now before you become skeptical of "another" site claiming to be the "one-stop-shop" for ecommerce related informaton -- I hear what you’re probably saying now: "...just what we need Chip – MORE information!"  

Okay, point taken. 

However, FitBase provides information in an organized, structured and intuitive manner, with apples-to-apples comparisons, benchmarking data on 1,000s of eCommerce features, and easy to follow, categorized "Best Practices" advice and resources in one place.  This even includes surveys, statistics and provider and solution details for vendors in over 30 different categories.   And, it is all presented in an easy-to-use solution finder interface that finds information and resources that most likely to fit your business ecommerce needs.

There’s only one thing to say. Phew. 

And I am glad to point you in their direction. It has been a great help to me, so check it out here and I believe it will help you too.

Enjoy.

- Chip Arndt

If You Have Video On Your Site, Consider Adding Video To Your Search Results

eTaildTail friends at SLI Systems weigh in on Video Search methodologies with some hepful commentary below for ecommerce merchants.

SPECIAL GUEST COMMENTARY

If You Have Video On Your Site, Consider Adding Video To Your Search Results

By Geoff Brash, VP of Marketing at SLI Systems, specialists in Webstore Site Navigation and Search.

Geoff can be reached with any questions at geoff.brash@sli-systems.com ...and let him know that eTaildTail sent you.

"If you haven’t already done so, you may be considering adding video to your e-commerce site.  The reasons for adding video are numerous – it’s a great viral marketing tool as you can post the content to YouTube and other online channels, and people always love the full visual experience when it’s available.  A video of your various products can be the extra push your customers need to purchase.  Have you also considered that highlighting your videos in your site search can be an added purchasing incentive for your customers?

As an example, one of our online retail customers, etrailer.com, recently incorporated videos into their site search and has found them to be quite useful to customers – often resulting in a purchase.  When visitors search or browse the site, they see a TV icon next to products that have a related video, such as installation instructions or other useful information.  Also, etrailer.com’s site search offers a refinement option to show only search results for products that have videos – which helps draw more attention to the video content.

According to Kevin Bross, CIO at etrailer.com, being able to offer the type of in-depth information available in video helps the site’s customers gain the confidence they need to purchase the correct products.

In our recent Trends in Ecommerce survey, 32 percent of participating retailers said they intended to add online video to their sites sometime this year. If you’re one of these retailers, consider highlighting videos in your site search results. It will boost awareness of the videos, and should help improve conversions.

And if you have a couple extra minutes, please answer our 1-question LinkedIn mini poll on the topic.  As always, please also feel free to drop me an email at geoff.brash@sli-systems.com if you have thoughts to share."

- Chip Arndt 

Online Marketing Options and Helpful Advice From MerchantAdvantage CEO

SPECIAL COMMENTARY

Online Marketing Options and Helpful Advice Going Into 2009

by Michael Lambert, CEO of MerchantAdvantage

It would seem that with all the articles, blogs, webinars, seminars and trade magazines available that all merchants would be completely in the know and up to date on, well, everything. But instead merchants feel they are under-knowledged in terms of what to do.

All of these information dissemination techniques lack the one thing that everyone thinks they want: One Simple Answer.

My belief is that if there was one simple answer, then there would be virtually no way to separate from the pack.  There would be little or no value in going the extra mile, showing up in an unexpected place, or providing special pricing or service.  The truth, for me, is that the difficulty of certain situations is the true opportunity to stand out and be recognized.  But there truly is a great deal to consider when it comes to online marketing.

SEO - Should an online retailer care, or invest heavily in Search Engine Optimization?  Search Engine Optimization allows merchants to leverage their efforts in terms of creating valuable content for their consumers. If a merchants content is well created, and there is interest in that content, then SEO can attract consumers from Google and other search sites.

But at what point does scrutinizing over text and such become an over expensive advertising campaign generating a great deal of interest in non-consumers generating much more work than sales?  The essence of SEO is to be to the point and be as specific as possible about the product, but in a way that matches how consumers look for you products instead of what researchers might type into the search engines.

SEM - Search Engine Marketing is the practice of purchasing space within the search engines to attract those interested in you based on selected keywords that might be typed into the search engine.  By paying for each click that occurs, it once again makes sense to focus a specifically and accurately as possible on words that would be typed by a perspective purchaser. The success of such a campaign might be measured by how much you pay in clicks vs how much you sold directly or indirectly from those clicks. These efforts are somewhat cluttered as many other marketing efforts for which you may compete with your SEM efforts.

CSE - A huge number of online shoppers constantly search for the best places to shop. They often do so using Consumer Shopping Engines (CSEs....better than Comparison Shopping Engines, I think).  Once again you pay for this traffic, so if it doesn’t convert than you’re paying for nothing. How can a merchant keep up with all that is necessary to  perform well in such channels? Click and Purchase tracking, and more importantly the analysis that goes with it, is without question the key to successful CSE marketing.

Enhanced Site Search - Buy providing a better user experience, many merchants find their conversions are greatly enhanced. Providing an easier and more feature rich site search tends to convert lookers to buyers, but with so many other factors in constant flux, this can be difficult to measure.  So finding a site search tool that also increasing some other aspect of marketing would likely yield the best result. An example of enahnced site search can be found with SLI Systems, with whom I recently gave a free Webinar with explaning the many benefits of enhanced site search.

WEB 2.0 - By providing feedback mechanisms such as product evaluations and consumer reviews, news and rss feeds etc... a retailer stays in touch with their consumers and the consumers needs.  This doesn’t always directly translate into profit, but almost always aids in online retailers success, depending on the focus of the online retailer.

So, I think we’re back to the original point, which is that when there is so much information, and so many options, how is a merchant to know which options are best for them? Are all of these marketing efforts needed? 

What’s the one simple answer to this?

In an article that I released through linked in a few months ago I lashed out at retailers complaining that CSEs were really too difficult, and they should be  made easier. In short, I said that with all of the tools and support information available to retailers by the CSEs themselves as well as third party tools (such as MerchantAdvantage), merchants wishing to succeed should take full advantage of such support.

So, for those of you wishing for a simple answer to the questions presented, namely do I need all of these marketing techniques, here’s just one simple answer:  To whatever degree you wish for success, the answer is - YES.

NOTE: Everyone wants a simple path that leads to their goals. But more often the simple path leads to a less desirable destination.

- Michael Lambert, CEO of MerchantAdvantage
(a Web-based tool, marketing company)

Microsoft Search One Ups Google Search...And More

MSN is back!

Well it never really left, but now Microsoft is "finally" making significant inroads into Google's market share of online dominance in general and paid search and applications as they apply to ecommerce and mobile commerce (mcommerce) search. 

In past six months, not only has Microsoft purchased ecommerce shopping search engines JellyFish (USA) and Ciao (Europe and USA), to complement existing online shopping products MSN Shopping,  Live Search and Live Cashback, but they also significantly beefed up their online search prowess, so much so that Verizon tapped Microsoft Search to be their default search engine on their mobile devices.

Is all this happening because MSN Search is "better" than Google or is it because Google is suffering the same backlash that MSN suffered a few years back? What is that backlash?

That backlash would be = monopoly...you are too dominant for "our" own good fatigue. Nobody likes a monopoly, especially Americans. Maybe Google - an excellent company - has gotten just too big.  It seems that the tides are turning where people are getting wary of their whole online life being "Googlized".  The irony is that MSN is not so small either.

Regardless...GAME ON....Microsoft has made it clear that they are in the game of search and they are here to stay to meet Google head on into 2009 and beyond.  Competition is a great thing for all of us....now....Yahoo! your move - can you say AOL Merger?!?! mmmmmm......

Here is a quick snippet of the recent MSN/Verizon partnership announcement and a link to the full article:

by Mark Walsh

"Beating out rival Google, Microsoft announced a five-year deal with Verizon Wireless to be the default search provider on the wireless carrier's phones as well as handling mobile advertising services. The long-rumored agreement with the nation's No. 1 wireless operator gives Microsoft a stronger position to challenge Google's commanding share of the mobile search market and make inroads into mobile advertising. Microsoft CEO Steve Ballmer announced the deal Wednesday in Las Vegas at the Consumer Electronics Show..."

- Read the whole story... <<<CLICK HERE>>>

- Chip Arndt

What Do These Online Retail Statistics For 2008 Show?

SPECIAL COMMENTARY

By Michael Lambet, CEO of MerchantAdvantage

Well, here we are at the end of 2008 and everyone is either holding their breath to see how things went, or shouting expletives about what they already think they know.  As with all matters of such magnitude, the online retail environment had some bumps, and some interesting growth as well.

After a quick review of some serious statistics by comScore– I was pleased to see the online retail segment that we address almost doubling in volume over last year.  In the face of our current economic setting this is no small feat.

In one portion of the statistics e-commerce revenue was divided into “Referral Tactict” categories such as: Search, e-mail, Comparison Shopping, Coupons and Other.  As a preliminary statement they note that over 33% of online sales activity occurred through a referral mechanism as listed within their Referral Tactic categories, and this overall statistic is up a few percentage points from last year.

You can, and should review their detailed stats when you have the time, but I found this particular chart enlightening.  Quickly, the tactics and parameters were – Search which was down a few points (no surprise there), e-mail was up a bit, Comparison Shopping was almost double the previous year, Coupons were up slightly, and the “Other” category was down.

SEARCH – Sales referrals from Search is one category, and I didn’t see a clear distinction between SEM and SEO.  In either case, the measurement as it stands shows a subtle drop.  I believe there are two main factors that lead to this drop:

1. Monthly cost of SEM in click costs has gone up (though not necessarily the cost per click) and SEO fees are up as well (to the firms hired to “enhance and optimize”, and   
2. Merchants have become more savvy about tracking click to purchase conversions, and are diverting efforts to those that they know will convert.

EMAIL- Email has grown in percentage points, despite the “DON’T SPAM ME” epidemic. It really just goes to show you that there is a way around virtually every marketing obstacle.  With appropriate email partners such as Blue Hornet and Vertical Response, there’s no reason retailers shouldn’t be re-marketing to their existing consumers.  So, revenues caused by emailed referrals was up from 11% last year to just over 16% all “referral tactic” based marketing for online retailers.

COMPARISON SHOPPING – We prefer the acronym CSE be translated as Consumer Shopping Engine these days. But, this category jumps from 2.5% of referral based revenues to 4.7%.

This number may be a bit deceiving as it shows itself as the percentage of all revenues, but not all online retailers use CSEs. So, the question arises, of those merchants using CSEs, which percentage of their referral based revenues are attributed to CSEs?  Obviously more than 4.7%.  So, it’s great being a part of a company that helps merchants market in a segment that is becoming more and more successful.

COUPONS - Coupons went up, but from 1.1% to 1.8%. I think that coupon sites have gotten a bad rap; the thought being that only cost conscious consumers (sometimes called bottom dwellers) use them.  True or not, these are consumers you likely would not have found as they do not frequent your site, nor do they necessarily frequent Consumer Shopping Engines or any other more traditional marketing venues.

There are a few pricing models, but none of them are expensive, and once you’ve got a cost conscious consumer, you presumably have convinced them that you provide a cost effective product line. So, re-market to these humans…  All in all Coupons are clearly becoming a more popular venue.

OTHER – Hmmmmmm. Well, I am an advocate of using unique methods and exploring your options.  Further, Web 2.0 and other new “inventions” have really come a long way. So, in general I’d say the “Other” category should have gone up.   But “nay nay” says comScore.

I would suggest that random and lesser known parts of the “Other” category brought down some of the more successful components of the other grouping.  Product reviews, blogs, and the like seem to be doing well for those merchants with the time to pursue such efforts.  I am wondering how much of the “Other” category is Print, billboards or even standing out in the street and yelling.  Anyway, this ever so broad category was down from 28.7% to 22.9% - which I think is a significant amount, even if it doesn’t really suggest any particular call to action.

Although the 2008 Holiday shopping season grew ever so modestly (6%) over 2007, I think too much focus is placed on the “Modestly”  and “Holiday” season words, and not enough on 2008  vs.  2007. 

Perhaps online retailers need to look more at the rest of the year (9% growth) as an area of focus.  Online retailers, and retailers in general have simply accepted that November and December are THE MONTHS to make all the years revenues look good.  They were never happy about entrusting two months for their overall annual profitability. And yet that consistently is where they look for the big bucks.  Why slight those other pleasant months by not giving them your attentions?

Even if your individual profits only grew 6% over what you would have made without additional efforts, that can often offset a somewhat disastrous holiday season.  And if that disastrous season don’t happen, papa’s gonna buy you a brand new wagon!  (translated: all the better for you).

So, I guess what I’m trying to extrapolate from this information is that sometimes you have to fight the fights that you can win, and that may not be so seasonal as you thought.

-- Michael Lambert, CEO, MerchantAdvantage

Survey Says: Site Search, SEO and Email Marketing are Key for E-tailing Success

eTaildTail and MerchantAdvantage are proud to offer insights from our friends in the ecommerce and mobile commerce industries to help online merchants improve their online maketing efforts and increase sales and return on ad spend.

This week, Geoff Brash of SLI Systems, the industry leader in intelligent storefront site search solutions, provides an insightful look into those technologies that help online merchants most effectively.

The study, and Geoff's subsequent commentary, covers what technologies online merchants found the most important to implement today to improve onsite conversions and build trust in the marketplace of their storefront and brand.

Thank you Geoff for participating in the eTaildTail community and helping us all learn a little bit more on how to be effective etailers!

Guest Commentary from Geoff Brash, SLI Systems:

"Are you giving top priority – and adequate resources – to making the most of site search, SEO, and e-mail marketing? 

We recently polled more than 300 U.S. retailers about what e-commerce technologies matter the most when promoting their online businesses, and these three e-commerce technologies scored the highest among several others, including user-generated content, static and dynamic ads, social media and more.  In fact, 90% of the survey participants said that search is a “critical,” “very important” or “important” factor in the success of their business. 

Those surveyed also said that the effectiveness of site search and SEO will continue to get better over the next three years.  Meanwhile, 40% of the retailer respondents are testing out new online tools as a way to strengthen their marketing efforts, by starting company blogs and podcasts. 

Almost the same number (38%) said that user-generated content – for example, ratings and reviews – is also gaining in popularity.  Have you incorporated any of these innovative approaches into your marketing efforts? 

What have your experiences been?

There are many more interesting findings from our survey, including the fact that about 90% of the retailers who tracked results said that after adding site search, sales increased or conversion rates improved.   

With the holiday season just around the corner, now is the perfect time to incorporate some of these important technologies if you’re not already.

If you’re interested in seeing the full results of our survey, please visit www.sli-systems.com."

Thank you Geoff and onward we charge to make our online storefronts the most productive that they can be for the Holiday shopping season -- even in a touch economy.

-- Chip Arndt