Good morning. Today we are going to talk to you about the topic of digital marketing, and try to give you some background and introduction into what are the components of digital marketing. This post is part one of a 5 part overview of Digital Marketing.
Today, we want to give you some background about Digital Marketing and discuss how you can know your customer better. This is the transcript of a recent presentation we gave to a business group call The Alternative Board. You can go to our YouTube channel to find a copy of the video.
Digital Marketing Background
A little bit of background, first of all. As you are probably well aware, especially for small businesses, the customer has changed dramatically. People don’t watch advertising anymore on TV. They tend to skip past it using their DVR. People don’t open their direct mail anymore. You unsubscribe from email lists, and many of you have opted out of … Or, opted into don’t call lists for your phones, so that people can’t solicit you at home. Your yellow pages probably serves more as a doorstop, and not really as a resource. If you’re trying to find something you actually tend to go online to search for that information. What you’re looking at now instead of the yellow pages is what we call search engine results page, or SERP. Here’s an example for a search engine results page for business telecom systems Denver. We were looking at a client like this recently. When you look at a search engine result page, it breaks down into specific areas. First of all you have ads on the top 3 spots, usually on the left hand side. Then down the right hand side, those are also all paid advertising, paid through what is called Google AdWords. Below that, you see what we call organic results. These are results that come back based on an algorithm that Google, or Bing, or Yahoo, or whoever the search engine might be has developed to determine what pages are most appropriate in order to provide the best customer experience for the given search term.
These are sites that have been optimized for the search term. They probably have been producing pretty steady content. They have a good base of content that’s been built. They have a lot of links built into their sites from other locations like blogs, articles, press releases … They’ve also done a good job of taking care of their local listings, and they’ve probably participated very well in social media. Those are the types of activities that are going to help make one website rise higher than another in an organic search result. It’s important to understand the value of a search engine result. If you look at a thousand searches, let’s say, the search engine result … The website, there’s a page that comes up in the first bottom of the search engine result. You get approximately 34%-35% of the searches that are occurring. So if there’s a thousand searches they would get 340 visitors. The 10th position will only get about 3%, or about 30 visits. It drops significantly from position number 1 down to position number 10. In fact, the first 3 positions get significantly more than even the bottom 7. If you total up the first 3 spots, they get about 63% of the visits, an the bottom 7 get about 32% of the visits.
The problem with organic, or the challenges with organic, you don’t get a return on it right away. This is an example of a recent client that has pursued an organic SEO, it took them 8 or 9 months to actually break even in the process. The first several months you’re not going to make a lot of money, but in months 6-9 you start to break even. The real value then becomes over months 12-24, where your search results … For every $5,000-$10,000 that you’re spending, you’re getting $20,000-$25,000 worth of traffic. If you do a good job in terms of targeting the right kind of traffic, you’ll get traffic that is going to drive leads to your business. As compared to a paid search with Google AdWords, if you pay for $10,000 worth of traffic or $5,000 worth of traffic, you’re going to get that value of traffic. No more, no less. Organic search [inaudible 00:05:20] is an investment in the short term, you’re going to lose money. In the long run it’s much more cost effective than pay search.
Know Your Customer
Let’s talk about how we get started in digital marketing. It’s very important to know who your customer is. The first thing that we counsel are clients around is to develop a good idea of who their target customer is and to profile that in terms of a buyer persona. What you want to understand are what are their key issues and problems that you can solve? What are they looking for from a desired solution? What are the terms that they use to search for your business, or businesses like yours, when they’re trying to find a solution to their problem? In the case of the business telecom business that we were looking at before, this would be an example of search terms that you might find that people would look for if they were trying to determine what the target keywords that they were going to look for in their digital marketing. Here’s a whole bunch of different terms. Some of them might be related and some of them might not. That’s the first thing we have to decide … Are they relevant? The second thing we want to look at is how much search volume there is and how much competition there is. You’re going to find, in some cases, you have higher search volume like this one, Voice Phone. 18,000 monthly searches. The competition is, on a scale from 0-1 or 0-100, it’s a 1 or 100%. You’re going to have others that have a lower search volume, say 44,000, with a much lower competition level. The point is, you can win both of these terms. It’s going to be easier to win this lower volume, lower competition, in the short run. That might be a good target initially. Then in the long run, you can target these higher volume and more competitive terms. First, be relevant. Second, prioritize in terms of the balance between search volume and level of competition, in terms of the words you want to target for your target customer.
For help with your digital marketing or to better understand your customer, please click here for a free consultation, or call us at 303.501.1821.