Search Concepts

A Story about Local Search (authored by Joe Griffin and published in the 2008 Fall Edition of Search Marketing Standard):

A practical and factual study about the shift in ad dollars and audience targeting among contractors, doctors and  attorneys.

For over 50 years, the medical practitioner, legal, automotive-dealer and home services industries have invested the majority of their advertising dollars into yellow pages, TV commercials, outdoor billboards, and print ad campaigns. Each year these industries spend billions in yellow page advertising alone. Studies conducted by Web.com, The Kelsey Group and others show that the contractor, medical and legal industries (The Big 3) in particular are making expeditious retreats from many forms of local media.

According to the Kelsey Group, traditional Yellow Pages advertising revenue is on the decline, having fallen .6% last year. Generally, all advertising revenues increase by a good 5+% per year, partially to just be in alignment with inflation and the ongoing growth of the U.S. economy. So, a loss of revenue is a pretty bad sign. The Kelsey Group also reported in June of 2008 that the U.S. online video market is expected to grow between $4 billion to $7 billion by 2012. The growth in the Small and Medium Business (SMB) category is expected to grow at a staggering annual compounding rate of 167.8% per year, growing from $10.9 million in 2007 to $1.5 billion in 2012.

The Big 3 understands that in 2008, the yellow page books are better suited for propping up youngsters at the dinner table, compared to their traditional use as an information retrieval source. With a computer in the majority of U.S. households, and over half the nation already on broadband, people prefer to access their information online, most frequently through search engines and online yellow page type directories.

Video on Demand (VOD), TiVo, and DVR are bringing television advertising to its knees. I recently sat with and interviewed Roland Perez, Executive Director and President of the popular television health network show, The American Health Journal.  We spoke about his meetings with other industry executives whom, he says, are scared to death of what is happening with television viewers and advertiser returns. “Major cable networks are now pushing over 500 channels, and a good percentage of these viewers are simply skipping through commercials via TiVo and DVR or downloading video and movies directly via VOD,” said Perez.  Advertisers are feeling the pain and are complaining to the broadcast industry. More and more of them are shifting their budget to online advertising formats.

Print advertising still has life in it, but let’s be honest, what’s more boring than a flat print ad? Worst of all, because of the success advertisers are having online, the average cost for an ad in a local print magazine is actually decreasing, which means they have to sell more ad slots. Have you seen a copy of a major national magazine like Vogue or GQ lately? Check out the first 20-30 pages. All you see are ads. Old school marketing directors and agencies are getting desperate. It’s clear that traditional advertising is losing its effectiveness.
Instead of pushing more ads in the yellow pages , more commercials at the tube or more billboards on the highway, the Big 3 started turning to the Internet. In case you didn’t know it, there’s a fight happening on the streets –on the Google streets, that is.

Let’s take a look at the current landscape of a Google results page using the keyword phrase “boston plumber.”

1. We get 308,000 results.

2. We have a maximum number of advertisers on the page (approx. 9). On average, these advertisers are spending $2-$4 per click.  8 of the 9 advertisers are locally-owned plumbers competing against each other, and 1 of these advertisers is a nationwide plumbing franchise.

3. We get 10 local listings (the one-line listings) at the top of the page.  100% of them are actual local businesses with websites, reviews and other local directory listings.

4. In the top 10 organic results we get mostly nationwide directories/lead brokers. 7 of these results include MagicYellow, CitySearch, SuperPages, Yellow.com, etc. The remaining 3 represent some local city websites and actual plumbers’ websites.

This data begs the question, “Why are there so many nationwide directory/lead broker sites in the organic results?” Smart Internet pioneers understood that this shift would take place years ago, and they developed these portal websites primarily to attract organic positioning. Contractors have been the slowest to fight back in the Big 3;  however, recent studies show that major contracting firms in many of the top U.S. metropolitan areas are starting to fight back. As these companies continue to shift budgets into organic search, you will see most of these directory sites move to the second page.

One industry that has already made the shift is the medical field. The organic listings portfolio in the medical services vertical looks completely different than that of the plumbing vertical. “In the last two years, my understanding of Search and its function as a marketing tool has increased tremendously. Now, in every seminar I attend, I hear about search engine marketing and its effectiveness in targeting local customers. While we still invest in some traditional media, we get most of our new customers via search engine referrals,” said Tim DeBacco, Director of Marketing at NU/HART Hair Clinics.

Let’s take a look at the current landscape of a Google results page under the keyword phrase “phoenix cosmetic surgery.”

1. We get 429,000 results.

2. We have a maximum number of advertisers on the page (approx. 8-10). On average these advertisers are spending $2-$4 per click. 7 of the 8 advertisers are local cosmetic surgeons competing fiercely against one another.

3. We get 3 local listings at the top of the page. 100% of them are actual local businesses with websites, reviews and other local directory listings. ‘

4. In the top 10 organic results we get 9 out of 10 local businesses.

Why do we get so many local websites in the organic results of Google in the surgery category but not the plumbing category? Do these major directory websites not target the cosmetic surgery vertical? Absolutely they do. Is it safe to say the surgeons might represent a slightly more sophisticated business owner? Yes. Is it safe to say that surgeons on average have more dynamic websites, and invest more money online? Yes, definitely.

I spoke with Robert Baxter, President of Surgeons Advisor, a web-based surgeons’ marketing company. He explained that his business has increased tremendously over the last  two years as more and more surgeons embrace Internet marketing and the effectiveness of search engine optimization (SEO). “In a recent speech I gave at the Facial Cosmetic Surgery 2008 conference, I discussed the statistical increase in search engine user referrals to my clients’ websites and the strategies behind the success. I walked out of there with more business cards and customer interest then I can even handle. The level of competition now for first page rankings is at an all-time high.”

Speaking of smart marketers and sophisticated-shifters, let’s move on to attorneys. Like medical practitioners, attorneys have been quick to embrace the web medium, particularly in the last 24 months. Personal injury veteran Anita Robb of Robb & Robb LLC says, “Search is the most effective marketing tool we have at our disposal. We’ve been in this business for over 25 years, and have invested massive dollars into traditional media. I think traditional media will always play a role in the advertising mix, but when it comes to sheer customer volume, quality and ROI we trust Search the most.”

So, what does this mean for the search engine marketing industry, and how does it affect search engine optimizers, interactive agencies and the rest of the brainiacs that “get” Search? The level of competition is rising at an exponentially faster rate. Standard on-page SEO and link-building strategies alone aren’t enough. I highly recommend spending extra time and research in these categories. Setting the right expectations is crucial, and it’s a fact that the Big 3 are not only doing SEO and PPC themselves.  A good portion of them are investing north of $5,000-$10,000 in SEO and PPC with Search and interactive agencies. The local competition is tough, and not to be underestimated. Aggressive and new link-building approaches are key for organic results. Landing page optimization and video integration is necessary to maintain healthy PPC conversions and stave off hungry PPC competition. Know your facts about the local playing field, set realistic expectations, and be ready to compete with these aggressive small and medium business owners.

July 14th is (A) my birthday and (B) the Inaugural Event of AZIMA (Arizona Interactive Marketing Association) - of which I serve as a Board Member. If you have an interest in networking and ongoing education in the area of Interactive Marketing please come - http://www.pitchengine.com/free-release.php?id=16539.

Originally published by Joe Griffin in Visibility Magazine in December 2007 - Concept is as powerful now as it was then, and still under-utilized.

There’s an old saying out there that “content is king”, and I agree that good content is the primary foundation for every website. Everyone who’s in the know understands that link popularity is far and away the primary driver of top search engine rankings.

After all, link popularity acts much like a “search engine credit score.” When you first start out, you can have the best looking website in the world, with incredible content and an amazing business model, but until you’ve established some trust, tenure, and responsibility, you simply won’t get any “credit” with the search engines. You’ve probably also heard about the very cliché “Google Sandbox.” Google representatives themselves have admitted the synergies behind the Google Sandbox theory, and the actual algorithmic logic that runs the Google search results.

The Google Sandbox however isn’t necessarily something that Google is intentionally inflicting upon new websites (Yahoo! has a similar policy). Understanding that Google and Yahoo! live and die on the relevancy of their search results, we must conclude that serving up websites with no established credibility, no tenure online, and zero trust would be a really bad idea.

So, I guess the question really becomes, “What is the best way to establish credibility with Google, Yahoo!, and MSN, and how can this be done in the fastest way possible?”

The answer to this question is simple and complex all at the same time. Essentially, building new inbound links to your website establishes credibility. The problem is that building these links properly needs to be addressed early on — having a strong game plan is crucial for obtaining optimal results.

The three components of link building are:
1) Link Quality
2) Link Growth
3) Link Volume

The industry has adopted link quality and link volume as the primary ingredients for link building juice. The only problem is that link growth is still rarely addressed, and long term link growth strategies are scarcely mentioned in tight SEO circles, even among the most experienced.

Well, what do we know about link growth? Let’s recap:

1) Link growth is not a new concept.
In May 2005, Google made public the contents of their United States Patent Application. Just search “May 2005 google patent” in Google to read up. Basically, this patent paints a picture that Google may be looking at a lot more than meets the eye. The patent discusses how they may be recording the date on which new inbound links are gained, the frequency with which new links are gained, the total number of days new links are maintained, and much more.

2) Link growth can act as a “sandbox” expeditor.
As previously mentioned, link growth is kind of like a natural credibility builder. Imagine link popularity like a high school popularity contest. If you can create new friends every single day, than you can exponentially better your reputation in a very short period of time.

3) Link growth is more powerful than fresh content.
People always talk about fresh content. Fresh content!?! Forget fresh content! A monkey can update an HTML page. Fresh content is great, but at the end of the day it plays a small role in the rankings process. Link growth cannibalized fresh content a long time ago. To be safe you should employ both strategies, but if you’ve got time on your hands invest it into getting new links first and foremost – assuming you’ve got at least decent content!

4) Link growth types matter.
There are a number of different classifications of link types. Links from bloggers can be classified as “social media links,” while links from newspapers and online publications can be classified as “news links and article links.” Links from top industry websites can be classified as “authority vertical links.” Each link type is important, and each link type should be expanded upon all the time.

5) Link growth consistency – the primary driver of rankings in the future?
Link growth consistency is one of the tell-tail signs of top performing sites. Why do Amazon, Google, and eBay all have millions of backlinks? They built them feverishly day in and day out naturally over many years. This link growth consistency will forever mark them as the titans within their respective categories. Every category on the Internet is different, and making sure that you are building the best links all the time is the secret sauce to Search. Start now, as this will continue to be one of the primary drivers for top rankings over the next several years.

With all that said, I challenge the person who said “content is king.” If content is king, than link growth is god. Without link growth, you can take your content and flush it down the toilet. Don’t know how to get links? Consult an expert!

First it was MSN. Then it was Live. Now, it’s Bing.com.

Microsoft pulls a nice piece of work out of the hat with Bing.com. Actually, for the last few years Microsoft has been behind the scenes working on some pretty great web applications. I remember when I saw Microsoft Live Maps Beta - the street and satellite view image quality was amazing. Still is.

It’s funny, Microsoft has built some impressive web technology, but they’ve suffered from a lack of market penetration, organization, and web leadership. Don’t get me wrong, it’s not like they’ve got a bunch of noobs running around, but unfortunately, they’ve been unable to secure market dominance in really any category on the web. MSN.com has done well - being the default home page for Internet Explorer for over 10-years certainly hasn’t hurt anything.

In review of Bing.com though, I can see that some things have changed with the software giant’s web team. If they can manage to gain some brand awareness they might have a shot with Bing. The only bad news for Bing is Live Search.

Having analyzed Microsoft’s search engine for the last 6+ years (since they pulled away from Looksmart and Inktomi), I fear they made the decision to downplay the importance of page trust. In the top search categories you’ll find decent search results, but outside of the manually reviewed sites at the top you’ll find yourself in a sea of “out of place” search data. In deeper categories the malice gets worse - even brand new websites commonly show their ugly faces.

IF, Microsoft can manage to improve Live Search, Bing.com will become what MSN always dreamed to be. The code, usability, and content syndication partners are light years beyond MSN.com. The presentation elements of Bing are impressive and simple. If I’ve been overly critical, it’s only because I expect more from Microsoft - they have the tools and the resources. Bing could represent a decent revenue driver for Microsoft - but, they’re going to need to compete against the big shopping comparison engines, the major travel inventory aggregators, and the other search engines. Microsoft needs to acquire one of the big 3 travel sites, and one of the shopping comparison engines. Only problem is that their competition has already made moves on the best players. AOL and Yahoo! are hungry, and showing no signs of defeatism - I hope my friends at Microsoft make the right decisions. I’m still a big fan of Microsoft. Good luck with Bing.com - it looks great.

Google has launched a new way to search for individuals called Google Profiles. Setting up a Google Profiles account takes only a couple of minutes.

The screen shot below shows a snapshot of the new Profile listing, which can be found at the bottom of the search results. Claim yours quickly!

Recognition and reputation is crucial in today’s global and digital economy. The new Google Profiles feature adds a new dimension to the reputation funnel. In addition to getting your picture added to Google’s main search results page, you also get an informative profile page seen here (which includes photos, general information, and location):

Startup’s, SME’s, Fortune 1000’s, doctors, attorneys, contractors, and others are consistently subjected to background searches.  

Profiles on the top search engines and  social network sites should reflect your professionalism and personality. Your photos and information on these sites should reflect the hard work invested in your company and personal  life. Poorly maintained social network pages and incriminating photos can play detrimental roles in future business relationships.

Google Profiles adds either a new element of positivity and awareness to your personal or business brand, or gives you an opportunity to help clean up an already tarnished brand. Take advantage of it!

For some time now search results for keywords like restaurants or gyms have yielded local search data.  Your IP allows Google to determine where you are and what results to send back.

Google recently updated these searches to include more generic keywords.  Below are two examples.

Actual Google Search Results for the Keyword “Loan”

Actual Google Search Results for the Keyword “Shipping”

This recent update makes Google Local exponentially more important.

The web is full of great articles about optimizing for Google Local - I’m a fan of Bill Slawski’s site, SEO by the Sea. He features some solid background info on Local.

Google has officially rolled out their new $100 million dollar venture fund. Google’s Rich Miner said “Just as we were founded by entrepreneurs, we think we can help some of those next entrepreneurs with the next great idea.” Rich Miner and Bill Maris will be heading up the fund as managing partners.

The fund will be geared towards early-stage companies seeking seed founding. The fund’s investments will range from $10,000+ to $10,000,000+. Google states that they will also work with companies that have already received some funding from venture capital companies.

The new fund provides Google with a centralized funding group for smaller investments. Larger investments will still be managed by David Lawee from Google’s corporate development group. Prior, Google has invested in companies from several different departments including the Google.org group. The $100 million is earmarked for expenditure over the next 12-months. Most agree that relatively speaking a $100 million fund is relatively small. At any time Google corporate may choose to increase the fund budget.

So far the Google fund has seeded two companies which include Pixazza (”AdSense for images”) and Silver Spring Networks (smart grid technology).

Google may acquire companies via Google Ventures, but at this time it seems that the primary intent is to focus on seed investments.

There is a lot of concern and questions spreading across the net about the recent Vince update made by Google.  I feel it’s time to chime in and properly evaluate how to react.  The general explanation is that Google is giving more authority to brand names.  Whether Google is directly modifying a website rankings manually or via its algorithm is unknown, but they have stated that it is based primarily on website trust.

Given the recent update it makes sense to analyze the strategies being used by the big brands. That said, quite often these larger brands are implementing weak SEO strategies… This update could be code for “quality backlinks,” which is the one SEO ingredient most major brands share. You will likely find that their on-page SEO strategy is pathetic or non-existent. You’ll probably also notice that these big brands are not intentionally using popular keywords in their backlinks, which makes me think that there is some manual intervention.

Here is the bottom line.  Google makes changes and will continue to make changes or “updates” to the way people can search and the order the sites appear.  As always, industry knowledge is critical, and staying on top of the latest trends is vital to the success of every SEO campaign.

We face the worst economic conditions since World War II. The crash of our major lending institutions, the stock market, and the portfolio value of America’s wealthy has taken a nasty toll on our nation’s liquidity.

I know plenty of folks with a net worth ranging from $500,000 - $2,500,000. Most of my friends and colleagues in this bracket have lost somewhere between 25-75% of their net worth in the last 6-months. This bucket of investors have tightened up their wallets and purse strings and are the least likely to invest into a new or existing venture.

People with a net worth of $2.5 million+ are just as cautious, but will invest if the model looks right, especially right now since most of the real losses have came and went.

Generally, smart investors appreciate a conservative business model, and expect to see the business losing money for the first 12-18 months. Now, these investors are looking for a “sure thing” and a “no risk.” Obviously, every new business is a risk. To attract investors I suggest the following:

1) Build a business that can achieve quick profits

Investors want to see value, and returns. If you have a solid model that shows a quick profit turnaround you are more likely to get interest. Your business model should show profitability occurring within 6-months.

2) Seek short-term loans and offer convertible stock or notes with a 10-25% coupon

Many investors are looking to make a quick buck, with low risk. Look for a 6-12 month loan, and offer a competitive interest rate. A 15-25% annualized return is compelling, competitive, and not overly aggressive. I prefer balloon payments to maintain cash reserves. You must maintain up to date financials, technical appraisals, etc., to ensure you maximize your business valuation. Give your investors the option to convert their loan sum into company stock or notes. The coupon allows them to “buy-in” at a discount.

3) Focus on what you know, and tout your background and historical results

Investors want security, and a track record. This is not the best climate to venture outside of your comfort zone. If you have a background in developing successful IT sourcing companies, then you should consider sticking in relevant industries. Now is not the time to pitch a frozen foods idea. Make sure your bio resonates well with your pitch concept. Keep your Executive Summary to 2-3 pages tops, and make sure your bio is included.

4) Stay away from losing industries

Stay away from industries that have been hit hard by the economy. Real estate startups (note: there are many opportunities here, but you should be very selective - added per commenter suggestions, and my agreement), mortgage lending, landscaping business, etc. are all tied to the broken real estate market, and savvy investors will run for the hills if you pitch these businesses. Try to focus on businesses that thrive and flourish in a down economy, i.e. A/R factoring, foreclosure rescure kits, etc.

5) Create quick wins, and get testimonials

Nothing compares to investor trackrecord. Once you’ve successfully re-paid investors, or have converted debt to equity, it is vital to get written testimonials. Approaching new investors with early wins builds confidence and security with your new investors. This is also cruical for refinancing existing debts, especially if you have upcoming balloon payments. It’s a good strategy to raise money even when you have cash reserves. This makes paying your investors back much easier, and sets the stage for easier funds down the round.

An old friend of mine from high-school has recently moved to Las Vegas. He and his father are starting a franchise with WSI (SEO, PPC, Web Design, etc.). Apparently he was doing some research on the subject matter and came across an article I wrote.

He sent me a message from Facebook and wanted some pointers. This is what I said (maybe it can help someone else too):

————————————————————————————-

Andy, what up! I am very familiar with WSI. Good field to get into man - it’s been a good business for me. Of course I got into it early on, but there is still a lot of money to be had!

When you are in PHX call me up so we can meet up.

I’ll give you a couple pointers.

1) The SEO/PPC business is best when you can retain 50% or more of your customers after the first 6-month contract (assuming you lock them in). You should try looking in SEO deals for at least 6-months to give you time to get results.

2) Crappy clients with bad business models that don’t properly fund the SEO and link building initiative will cost you more money in the long haul (i.e. home based business opps, affiliate gift stores, cheap local realtors, mortgage lenders, etc. You can’t make these guys successful - some industries are too saturated and even $10k a mo. will be a waste.

3) Careful in how you set expectations. Setting organic rankings expectations is the bane of your success. Set them wrong and you will fail - set them right and you will succeed.

4) Link building makes the world go round. Without strong link building SEO might be useless (unless they already have a very popular/trusted site).

Good luck my friend! Keep my posted!

JG