Online display adverting is a good method to build you brand and gain mindshare. It can also significantly enhance the performance of a search engine Internet advertising campaign. According to one study, searchers exposed to display advertising were 22% more likely to produce a sale than those who were not exposed.
The lesson here? Exposure works. But if you’re a small business advertiser that can’t afford to plaster banners all over the Internet, can you still apply the same principal? Sure. Remember, although not as graphical, your search engine advertising placements are delivering your message to searchers looking for your products and services!

The Interactive Advertising Bureau (IAB) long ago did a study on paid search advertising and its effect on brand lift, affirming what firms have known for years ─ that top search engine visibility has a definite branding effect. So even if you can’t afford a comprehensive banner campaign, you can increase the effectiveness of your search online advertising by simply increasing the frequency in which your search ads appear. And you still only pay when interested parties click on your ad to learn more. That’s the beauty of business advertising on the Internet.

According to Dana Todd, a chairperson of SEMPO’s Education Committee, “Search marketing is still growing… and we’re very gratified to see its flexibility and to understand it as a medium that has equal value as both a branding mechanism and as a business acquisition mechanism.”

At any rate, marketers continue to see the value in both search engine marketing and display advertising. Both are expected to continue growing. eMarketer predicts that search and display ads will retain the highest share of online ad spending formats through 2013, and will be the only formats to maintain double-digit share through that period.

But ‘brand lift’ and ‘mindshare’ can be lofty concepts when you simply want more business. So think of it in these terms: when a local consumer has a need in your area of expertise, who do you want them to think of? And when consumers go online to search, who do you want them to find?

-- Contributed by Jeff Werner

Search ads provide the means to target consumers when they're engaged and in "search mode," but give little opportunity for compelling art. Banner advertisements catch the eye and are much more graphically appealing.

Which is key - placement or creative?

Both online advertising methods are potent options for effective marketing on the internet. Display internet banner advertising drives brand awareness and can help create demand. Two key advantages of search are placement and predictability. More targeted placement means being where consumers are when they actively search for products or services.

While targeting to audience segments, user behavior and even content are possible; the limitation of display is generally the unknown needs of individual users. Therefore, more impressions and reach are needed to achieve the desired consumer response. Search marketing on the Internet has been widely hailed for its purity of direct response – the user only sees an ad in response to a clear need that has been articulated in his or her own words.
 
Although not flashy, these ads can be highly specific to exactly fit the user’s needs, creating great efficiency for the advertiser’s budget. Here, the “plain” text look is an actual advantage. It’s a utilitarian model designed for speed, simplicity, and ultimate ease of use. Google’s home page is a perfect example. Its model is ideally tailored for “search” mode when the consumer is looking for a solution and doesn’t want to navigate through clutter.

Display ads need to be flashy to interrupt a user and stand out on a site where content or some other function is the primary reason for  user visits. Compelling art can be great for branding, but if it does not inspire a user or fulfill a known user need, is that the best use of your advertising dollar right now? And remember, consumers are overloaded with ad messaging, being exposed to thousands of ads per day by recent estimates. Sixty-two percent  of people say there are too many ads in general (Forrester), and 18 percent report they dislike all forms of advertising (DoubleClick).

When making a decision for search ads vs. display ads, search should be the starting point. It provides more predictable results, and it reaches a more immediately qualified customer base. What limits search is the volume of the customer base. Pundits have said, “You can’t get people to search more through search ads.” Consumers are in control on search engines, and they tell the engine their need or interest. Display ads build awareness and demand, often leading people to search engines and more searches. Thus, search and display work well together. If your business must respond to wide consumer demand, use search. If you need to build both awareness and your brand, use display in combination with search to respond to the increased demand.

Next post… the advantage of predictability. 

-- Contributed by Jeff Werner

Search is traditionally measured in the number of times your ad is displayed (impressions) and number of times a user clicks on the ad (clicks-thru rate or CTR). Many advertisers also track actions/conversions (CPA) such as calls, email response, page/coupon/map prints (it’s easier than you think… WebVisible offers this!).

As businesses scrutinize their local online advertising, the less tangible benefits of search should also be recognized. Usually thought of as the territory of Internet banner advertising, search marketing impacts brand favorability, even for local businesses. Because it is inherently more measurable, it is held to a higher metrics standard, yet it is rarely credited for brand building compared to vehicles such as display, TV, radio or print.

If you are lucky enough to place in the top few organic listings for a particular keyword, should you also purchase a top sponsored ad? Absolutely. You gain mindshare and a lift in brand recognition by dominating the top of the search engine results page (SERP). It shows strength, market leadership and direct relevance to the keyword the searcher used.

On the flip side, you lose those advantages when you are not there. Even if you are a well established business or have a strong brand, if you are not placing high on the SERP and your competitors are, it begins to erode your claim to dominance. And, if you are a smaller business or a less-recognizable brand, search is an excellent way to eat into the larger or more established names (that are all too often complacent, ignoring search!).

And be where people are looking!

Organic listings are the links of choice for many Internet users. But they also see the top sponsored ads. Because they are designed specifically for those keywords, they are highly relevant to the search. People tend to more carefully evaluate ads before they click (but are less scrutinizing of organic listings). Local business advertisers can take advantage of this behavior to communicate a specific, highly targeted message in the sponsored ads, then ensure when the user clicks that the landing page is specifically tailored to deliver on that message.

-- Contributed by Jeff Werner

Creating compelling web experiences that delight users and make them want to return is one of the most difficult parts of the Internet.  I'd argue that the use of search has not made site stickiness any easier.  In fact, I think many of us have reduced our use of site favorites or bookmarks, favoring search to save us for the next time we have a need or want to know the best site for a certain thing.  As the web changes rapidly, why should I settle for the site I went to last time for some information?  Maybe something better has since come along, so I'll just trust a search engine like Google or Yahoo! to point me to the best site. If my web business is built around repeat traffic, I need to take this into consideration, and probably need to use online advertising, including search engine marketing and Internet banner advertising, to draw even repeat users back to my site.  Don't assume that they will come back, or even remember you, if they have been there previously.

Have you consciously or subconsciously adopted a similar attitude when it comes to favorites and bookmarks?

For an amazing number of small business owners, online advertising agencies seem unapproachable.  Understanding local Internet marketing can be a difficult endeavor, and the typical Internet banner ads a business owner sees are big, recognizable brands.

The great thing about targeted online advertising is that a little investment can go a long, long way.  Is there $100/month in your budget to learn more about your business and your clients than you've ever known before?  Would you rather send out 100 letters to people who you don't know your business, nor have clear interest in your business OR get almost 10 phone calls per month from highly interested prospects?

Consider this real world example - a sign designer here in Costa Mesa, CA.  The client initially did not have a website, but smartly recognized that many consumers now use search engines to find sign makers and designers.  In fact, without a website, search engine marketing was the most immediate way that he could be found by potential customers on the Internet.

We built a customized profile landing page, and set up an initial campaign to determine what types of sign and graphics services were most compelling to potential customers in the Orange County area, all for an introductory budget of less than $100/month.  The results so far have been staggering.

• Over 300 targeted visitors to the company's landing page
• Nearly 40 connected phone calls from interested prospects
• Several people printing out the landing page and carrying it into the signmaker's office
• Search data showing that vehicle graphics and lettering are the most demanded and high performing services in his campaign

With the several new clients that he received in just the first couple weeks of the campaign, he paid for several years worth of online advertising.  As you think about local Internet advertising and whether it's for your business, think about this company's results, showing the incredible possibilities that an Internet advertising agency can bring to a local business.  Make sure they can provide the tracking, market research and results that your business deserves, even if you want to start with a $100/month initial investment.

In March of this year, I was shocked to see data from Warrillow that showed that 73% of small business owners said that they read their local newspaper (53% read national newspapers) on a regular basis.  The problem I foresaw with this data was that small business owners may be likely to think that consumers (their potential customers) have the same media habits.

One thing that is clearly holding back the adoption of local Internet advertising is the adoption of Internet media by business owners.  We often project our own beliefs and behaviors onto others, assuming what we do is how others behave.  With regard to advertising, we are well-served to remove our own beliefs and let the data speak for itself.  As an example, in our 2007 survey with Nielsen//NetRatings, participants reported that search engines were the #1 place that they used to find local businesses.  If you have a local business, and you are determining where you want to invest your advertising dollars, you probably want to start in the #1 spot, and then move down from there.

Find out where your customers spend their time, and find the advertising opportunities that align with that information.  Almost a quarter of media consumption is now occurring on the Internet, so Internet banner advertising and other online Internet marketing opportunities abound.  Advertising follows audience, so make sure your advertising is following your best audience.  We help our local business clients with these evaluations and decisions every day.

I was talking to my father, a long-time independent retailer who has successfully fought off the big box chains for years, about how the economy is affecting his business.  Historically, he has seen some people drive 30 or more miles in the belief that they would save a lot of money at one of the "category killer" stores, while his store was a mile or 2 from their home or office. 

With the combination of expensive gas prices and the economic downturn, he's benefiting.  He is seeing more new faces in his store, and more people saying, "I didn't want to waste the gas and time to drive that far."  My first comment, "Make sure to remind people how truly local you are - use local advertising, online and in your traditional media outlets, to tell them."

While most of the big box stores like Wal-mart have been built on the outskirts of towns, the local businesses on the square or in the city center can use very targeted internet advertising to speak to those of us who don't want to waste time and gas to save a nickel.  More people are considering the total cost of things in this environment, so help them justify why they should call or visit your business.

A few headline ideas to use in local search marketing, internet yellow pages or internet banner ads:

"We're right on your way to work or school - stop by"
"Don't drive all over town - call and we'll bring it to you - free delivery"
"Our customers save $10 on average in gas, just by shopping with us!"

As you look at search session data, where 50% of search sessions are over 30 minutes (Microsoft data), and the number of queries and terms per query increasing (more search and refinement), is online information access increasing purchase cycles for local products and services?  While many may speculate that information access makes decisions easier, I think online classified advertising, internet yellow pages, banner advertising, and other local internet advertising are creating choices never before available to consumers.  I have to believe that sales cycles are actually lengthening.

In a yellow pages world, we would call a business during the research process, giving them an opportunity to sell us while also helping us in the research phase.  The merchant was a key part of the information gathering process. As a result, more spontaneous consumers would buy faster. Online product, service and company information and its transparency and access are great, but they also increase the noise that consumers must manage.

As a business owner, you should expect fewer information gathering and research calls, as more of that activity is self-served now. Thus, your website should try to aid the consumer in this process, so you still get the credit for providing the information and being an expert. You also need to appear to consumers throughout their purchase cycle, and not just when they are ready to buy.  Investing in content, as well as targeted online advertising, are critical to success.  Finding the time to think of your potential customers, their needs and likely Internet behaviors is an entirely different challenge - for another post.

We continue to read about the increased allocation of advertising budget from traditional media to more accountable and productive Internet advertising, specifically search.  There are a few very practical reasons why:
1. When the economy slows, people naturally move to cut costs, and advertising has historically been viewed as a cost, even a luxury.  If one cannot assess the effectiveness of his advertising, he's going to either hope it's working, or he's going to cut costs and stop it.
2. Media consumption is shifting online and the effectiveness of traditional media, both real and perceived, is declining.  Advertisers want to be where the audience is.
3. Search engine marketing has become the #1 direct response medium, and when times are tough, who better to market to than targeted online advertising consumers.  Historically, the best direct response media has been a "pay for placement" model, with the hope that the placement would be seen by ready-to-buy customers at their moment of need.  Search advertising is even better because you don't pay for placement, you pay for performance.

At a time when consumers are less open to advertising, less likely to be in a buying consumer mode, and more likely to extend their purchase cycles, the best potential place to advertise is where the most active and measurable consumers are - on the Internet, specifically in the search engines.  As an Internet Advertising Agency, we help local businesses recognize their first opportunity is online.  Everything else in the media world order arranges below search engine marketing, as it is less productive, less useful and lower return on investment.  If you are in a local market like Chicago, search engine marketing may be the place where you can spend your entire advertising budget.  In a market like Spokane, Washington, you may have to consider Internet banner advertising, billboards or radio, to stimulate some additional demand for your business.  However, search's rank in the media world order for most companies is now firmly at the top, and it is unlikely to be supplanted anytime soon.