The Disconnect in PPC vs. SEO Spending

http://www.seomoz.org/blog/the-disconnect-in-ppc-vs-seo-spending

There’s a big disconnect in the way marketing dollars are allocated to search engine focused campaigns. Let me highlight:

Not surprisingly, search advertising should continue to be the largest category, growing from $9.1 billion in 2007 to $20.9 billion in 2013.
- Source: C|Net News, June 30, 2008

OK.  So companies in the US spent $10 billion last year on paid search ads, and even more this year. How about SEO?

SEO: $1.3 billion (11%)
- Source: SEMPO data via Massimo Burgio, SMX Madrid 2008

Google Heat Map

SEO drives 75%+ of all search traffic, yet garners less than 15% of marketing budgets for SEM campaigns. PPC receives less than 25% of all search traffic, yet earns 80%+ of SEM campaign budgets.

That looks to me like most of the eyeballs are on the organic listings – the ones you can only influence with organic SEO… Huh? Maybe we should get more data on this subject. Let’s turn to Enquiro:

Organic Ranking Visibility

(shown in a percentage of participants looking at a listing in this location)

Rank 1 – 100%
Rank 2 – 100%
Rank 3 – 100%
Rank 4 – 85%
Rank 5 – 60%
Rank 6 – 50%
Rank 7 – 50%
Rank 8 – 30%
Rank 9 – 30%
Rank 10 – 20%

Side sponsored ad visibility

(shown in percentage of participants looking at an ad in this location)

from the desk of
Ondrej Ilincev

http://ilincev.com

1 – 50%
2 – 40%
3 – 30%
4 – 20%
5 – 10%
6 – 10%
7 – 10%
8 – 10%
Continue reading…

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