Differences between Search Engine Optimisation (SEO) and Pay Per Click (PPC) advertising
Andy Headington - 17th February 2006
Search Engine Optimisation (SEO) and Pay Per Click (PPC) marketing are the most popular forms of website promotion in use today. Yet there is still confusion about each of these areas. This article aims to explain the differences between the two and offer advantages and disadvantages of each.
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Introduction
Promoting websites online can take many forms. However, the two most popular ways to advertise websites are through search engine optimisation and pay per click advertising. Each of these methods has one aim; to get the people searching for your product onto your website. How they achieve this goal differs slightly and each of these are discussed below.
To explain pictorially the difference between the two, the screen shot below shows the SEO and PPC areas from Google using the example phrase ‘web agency dorset'.
Search engine optimisation (or SEO) is the art of building a website and its content, with search engines and searchers in mind (shown on the left here). Through correct optimisation the chances of getting a website found under its key phrases should be dramatically increase. If your site can’t be found then potential customers will visit a competitor’s site and you could lose out on a sale.
Search engine optimisation and search engine marketing has been one the biggest growth areas in the Internet in the last few years. As more and more people turn to the Internet for their needs, the need to get noticed increases. Due to this competition, the chance of your website being found, in search engines like Google or Yahoo, decreases day by day unless you actively undertake some sort of search engine optimisation.
There is still a big myth among some website searchers that if you build a website it will automatically be found in search engines. In the early days of the Internet (pre 2000) this may have been the case. However, many of the major search engines are very complex so getting your website on the first page of the search engine results page (SERP) for competitive search phrases requires lots of toil and sweat from SEO experts.
Why is search engine optimisation important?
To make your website investment worthwhile it needs to be visible to customers and search engines. Search engine optimisation allows this to happen for free.
When implemented correctly search engine optimisation can have a dramatic effect on a business. Many companies purchase a website in hope that it will be bring business without actively promoting it or seeking ways in which to see a return on investment. Alternatively companies get tempted by 'web promotion' businesses offering of submitting your site to thousands of search engines in the hope it will make their site easier to find.
In reality there are only half a dozen search engines worth spending time over, with Google, Yahoo and MSN being the biggest of these. Emarketer said that in December 2005, Google had nearly a 50% share of all searches conducted in the US (see below)
It is also true that many of the 'lesser used' search engines (sometimes called second tier) receives their search results from the major players. For example, AOL results are powered by Google. So achieving high positions on Google also leads to high listings on other search engine. The Bruce Clay Search Engine relationship chart ®, shows who's supplying who.
SEO is important because it will bring you active customers to your website who are interested in your products and services. Providing you have a website which is user friendly, informative and is of interest to them you should be able to see a return on your website investment as you will not have to pay each time a user clicks to go to your website.
Advantages of search engine optimisation
- Once you’ve reached top positions, you should stay there
- More searchers click on ‘organic results’ (around 60% vs. 40% PPC)
- Can appear in hundreds of search results page
- Cheaper than PPC in long run
Disadvantages of search engine optimisation
- Very time consuming
- Can take up to 6 months to see results
- Can’t guarantee placements
- Search engines change and evolve so, in worst case scenario, you can lose positions overnight
The problem with most websites is that they can not be found in major search engines without a lot of effort (see above). Around 85% of people now use a search engine to find what they are looking for so unless you are on the first page for your target phrases, the investment in a website is rarely returned. One of the most cost effective ways to advertise on the Internet today is to use Pay Per Click (PPC) marketing on major search engines such as Google.
PPC adverts are the boxes usually shown on the right hand side of search results and are displayed when a searcher types in the key phrases which you have identified. The adverts work by bidding on keywords and phrases; the higher the bid, the higher your advert is placed. One of the best features of PPC is that you only pay for your advert when someone clicks on it, so you can set up hundreds of key phrases and only pay when someone clicks on them.
There are three key players in the PPC industry; Google, Overture and Miva (formerly Espotting). These three companies feed the majority of the search networks around today and each has a slightly different user demographics (for example, Overture supply Yahoo and MSN). We work with businesses to evaluate which PPC provider is most suited to their target markets.
Advantages of pay per click advertising
- Only pay when advert is clicked
- Take user straight to relevant page
- Budgets can be set; and stuck to!
- Detailed reporting of what people are searching for
- Generate website traffic for minimal investment
- Can be set up in a few days
Disadvantages of pay per click advertising
- Monthly costs incurred
- Bids can be expensive and budgets can be big
- Can be hard to manage large volumes of phrases
Summary of differences between SEO and PPC
In summary, the main difference between SEO and PPC are the risks involved.
With SEO, you are trusting the search engine optimiser to achieve good positions. Even experienced professionals sometimes fail to achieve their goals and even when they do, a change to an algorithm can see positons lost in a period of months, weeks or even days.
With PPC the chances of losing postions dramatically are small. You should always be near the top of listings, provided your bids are high enough. However, these guaranteed positions come at a price and with competition increasing day by day, staying at the top can become a big expense.
Although SEO accounts for only 11% of search engine marketing spend, many users still prefer to click 'natural' listings. A study by research company, Eyetools, found that users have a 'golden triangle' when using major search engines. The diagram below shows the heatmap of where users look and click.
Click for larger image
This reinforces the findings by Jupiter research which said that around 6 out of 7 searchers click the natural results (SEO), rather than the right hand listings (PPC).
Although there are more risks with SEO, it you can get it right, it seems as if the gamble is certainly worth taking.
How to start website promotion
Dorset web agency, Adido Solutions, have years of experience in web promotion. We work with our clients to evaluate which routes are best for them and build campaigns to their business and budgets. To find out how we can promote your website, please call us on 01202 853610 or email us.
