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Observations, Ideas and a little common sense about the web industry…

PPC is More Expensive, Less Effective

December 5th, 2008

Tag: General

Companies choose to do it anyways.

Check out this post about SEO vs PPC on seomoz.org.

We see it all the time. Big companies will take the easiest approach, even though it costs far more money to get the same, or likely less results.

The highlights from Rand’s post:

# From the numbers above, we can see that the opportunity from organic search is 5.66X that of paid search
# Across the board ad spending (via SEMPO):

* 2004 was 85% PPC vs. 12% Organic
* 2005 was 87% PPC vs. 11% Organic
* 2006 was 87% PPC vs. 12% Organic
* 2007 was 88% PPC vs. 10% Organic

# Spend on SEO is 1/8th of PPC

This dovetails nicely with the comments we’ve been making regarding the Automakers and Fortune 500s ignoring SEO. Hopefully the availability of this kind of data will cause marketers, especially those at big organizations, to take a second look at SEO.

4 Responses to “PPC is More Expensive, Less Effective”

  1. Fortune 500 | Homepage Copy | SEO Says:

    [...] is frustrating to look at these huge companies throwing money at PPC, TV and other methods of advertising, when a small step in the SEO direction could be garnering the [...]

  2. Stephen Ng Says:

    Unfortunately most businessman will value Time much more than anything. Applying PPC will have almost instant result where SEO cant.

  3. Geoff Karcher Says:

    That’s a valid point Stephen and makes sense in the short term.

  4. ppc Says:

    Nice post! Very complete and detail information. That?s what i need! Well done!

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