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I think search engine marketing is fundamental for every business that sells to people who use search engines, which means everyone. In my opinion SEM is a standards kind of thing. When you build a website, you should make it search engine friendly. Your site should also have interesting content on it that draws links - that's linkbaiting. When your company has exciting news you should tell everyone who'll listen - offline and online. That's all SEM, but it's also a smart way to do business.

As for inhouse vs outsourcing. If possible, all your marketing efforts should be integrated. It just makes for better branding. SEM is most effective when it works with online marketing efforts. And online marketing efforts work best when they work with offline marketing efforts. Outsourcing all of that seems more complicated then it needs to be.

The ideal would be to have an inhouse marketing team with SEO capabilities. That isn't possible for most businesses though, because of cost and other factors.

I think a better question would be what percentage of your marketing budget should you dedicate to SEM? We all know we should do SEM, but it's hard to determine how much is necessary.
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Re: Can I Take a Whack at the Big Question?

EricaF
4.00 (Good) Vote: Interesting Interesting Interesting Interesting Interesting

October 2007

I think that in determining the % of marketing budget allocated to SEM, it all depends on the results.  Like any marketing effort, you assess your return on investment vs. your goals for the campaign - and take money away from what performed badly, then allocate more to what knocked your socks off. 

It's how a lot of my company's clients end up reallocating money among the SEM campaigns themselves.  Oftentimes, they'll see one network perform better on a per-lead or per-sale basis, so they reallocate their $ accordingly. 

Not sure if that helped, but it is one perspective... sometimes determining budget allocations is a political thing too (e.g. broadcast people won't let their budgets be cut in favor of SEM.)  Just depends on the company.  That's a whole other topic though, sheesh  ;-)
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