Not to be confused with its close sibling, SEO – Search Engine Optimization. What’s the main difference? Well, SEM utilizes a media budget to place contextual ads on a search engine results page or banner ads on an advertising network website. SEO on the other hand, does not require a media budget to affect where a website gets listed in the ‘organic’ search engine results page; but instead copy, coding and inbound links. And what about Social Media? Well that’s a whole other beast, but one that works hand-in-hand with SEM and SEO as part of an integrated online marketing approach.
But regardless if you’re talking about SEM, SEO or Social Media, the fact is that these are the new direct marketing tools of the future. And over the past half-dozen years, the popularity of these marketing techniques has grown while at the same time traditional mass market advertising has dwindled. In fact, SEMPO recently released its sixth annual “State of Search Engine Marketing Report” (http://searchengineland.com/the-state-of-search-engine-marketing-2010-38826), and the year-over-year increase in the value of the North American SEM market would have most mutual fund portfolio managers green with envy.
For years, direct marketing (direct mail, telemarketing, email marketing) tempted marketers with the promise of measurable marketing campaigns that could do more than promise impressions and awareness – they could prove their worth through an ROI calculation. Today, online marketing is simply the next ‘wave’ of direct marketing, but instead of using open and response rates to validate the effectiveness of a campaign, we can now use conversion metrics and web analytics to prove the value of our marketing efforts. Not only prove it, but optimize it based on the in-market results we’re seeing on a daily basis.
Gone are the days of coming up with an offer, creating some copy, renting a list, sending some mail, and crossing your fingers for some positive results (and hopefully changing things up for the next mailing based on what you learned). Today’s online marketing campaigns are real-time marketing promotions that can be altered and optimized in line with benchmarked goals, available media budgets, and a myriad of testing and learning opportunities.
At Digital Cement, we see SEM, SEO and Social Media as integral parts of the direct marketing process. And when it comes to demand generation or customer acquisition, these online channels can be used to compliment and leverage offline and mass market advertising channels for a holistic and unified marketing approach.
Over the coming months, we’ll be using this blog as a way to share our learning, keep you up to date on the industry, get your opinion, and hopefully give you something to think about and apply to your own business. I hope you’ll join us.
Paul Kraemer