This time of year, many folks are predicting what the year ahead will bring. Instead, we’re recapping some of last year’s search highlights. 2003’s developments are already paving the way for this year's sure wins. Utilize the best new technology and services to make 2004 a historically profitable year of your own.

“Search: the Killer Application of the Internet”

With the success of search justifying itself in apparently every application, further kudos was offered by Alan Meckler, Chairman and CEO of Jupitermedia Corp., in his August 2003 article where he wrote: “…the search field has become the de-facto killer application of the Internet….While PUSH technology and other terms came and went, I doubt that paid search will be anything less than the great killer application in Internet history. Congratulations to those that saw the light."

A few months prior, Jupiter Research launched a new search service that counsels clients on how search fits within their marketing plan. As Matthew Berk, a senior analyst at Jupiter so aptly stated, "Search is the single greatest opportunity to learn from and influence consumer behavior.”

Paid Search Supremacy

On January 1, 2003, AdAge published the article, “Term-Targeting Becoming a Killer App for Online Marketing” which labeled paid search as the central muscle of the Internet advertising business. One year ago, marketers were already flocking to invest search profits back into more search advertising programs. Why? Because as a “customer mining device”, search methodically matching hundreds of millions of consumer searches a day with advertisements delivered specifically for precise keyword search terms.

In the Interactive Advertising Bureau's and PricewaterhouseCoopers' Internet Ad Revenue Report released in November, it was shown that keyword search – which includes paid placement and paid inclusion listings – made up 31 percent of all Internet advertising spending in Q2 2003, up from just 9 percent for the same period the prior year.

Advent of Local Search

The convergence of paid search and content-specific sites is taking place In July, comScore Networks and the IAB reported that 64% of US marketers think local sponsored search advertising offers better return on investment than other media.

Danny Sullivan, renown search engine expert and Editor of Search Engine Watch, recently turned his attention to the very hot and very lucrative topic of local search engines and advertising in his series, “Developments in Local Search.”

Yet, the self-service ad model presented by Google and Overture isolates local businesses accustomed to sales calls from local Yellow Pages representatives and don’t wish to enter the frenzied fray of the online bidding model.

Vertical Search

Also known as content portals, the trend toward specialized sites is gaining momentum. As pull marketing ascends online, content specific portals are maximizing search relevancy and delivering ROI-positive results for marketers. Users know that a search at Amazon for a wine book compared to a search at Google will produce more relevant results. Marketers are also discovering that vertical advertising indicates greater buying intent than general “just looking” searches at generic search engines.

Site Search Needs Help

While paid search is justifying the killer app of the Internet, studies are finding that site search still needs work. Jupiter Research reported that over 1/3 of shoppers rely on search as the primary method for locating products while nearly ½ rely on it after failed navigational attempts. The scary part is that 85% of searches do not answer with relevant results. This gaping failure makes most shoppers leave and search elsewhere.

Technology’s New Ally

Technology is only part of the solution. Irrelevancy in both site and Web searches can largely be blamed on technology left to its own devices – spiders and algorithms – to correctly rank search results. In content-specific advertising, Google and Overture are battling it out over whose results provide a greater percentage of best matches. Google’s system places ads on pages automatically, based on what the algorithm thinks the page is about. Overture, on the other hand, is leaning more on human review to ensure the technology has properly assigned keywords to results. Overture believes humans are the solution to more precise results.

Jupiter Research reported that relevant offers paired with specific keyword searches can produce sales conversions of 20% or more. One retailer has found this approach so profitable, that it has added a human touch to over 700 keyword search campaigns on its site.

It’s working for them. Make it work for your site as well.

Search offers the greatest opportunity to influence and learn from consumer behavior. 2003 was a banner year and 2004’s developments are already proving that search will continue to headline. Our recommendation? Get involved in search engine marketing in every viable manner and watch it improve your business, your revenues and your brand.

Make some history of your own: Improve conversion rates, build brand equity, open new revenue streams and make 2004 a banner year for your site with the next-generation search technology of Vortaloptics.

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