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The MarketLive Performance Index Volume 2: Maximizing Search Engine Marketing

April 29, 2008

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The MarketLive Performance Index Volume 2: Maximizing Search Engine Marketing

The primary focus of this report will be on improving customer acquisition through search engine marketing – specifically natural search and paid search. Data highlights for the second quarter 2007 include a detailed look into the effectiveness of paid search versus natural search as well as a performance breakdown of the top three search engines.

The MarketLive Performance Index has increased its coverage to include aggregate online retail data for two additional industry segments: Brand Manufacturers and Brick-and-Mortar Retailers.

The only drop in performance was an increase in the "1-and–out" rate, or the percentage of unproductive site visits where the shopper visits only one page and immediately bounces away before engaging or purchasing. A major cause of 1-and-out visits is an increase in sub-par Search Engine Marketing: paid search results that don't deliver on the promise of the ad or natural search links that lead to less than optimal landing pages.

Although cause for caution, the increase in 1-and-out visits is understandable and will likely continue to trend upwards as merchants increase their SEM budgets going into the Fall and Holiday seasons. Even as online merchants continue to rely on SEM, a surprising 65% of online marketers rate themselves as only average, beginner or novice search marketers.

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The MarketLive Performance Index Volume 2: Maximizing Search Engine Marketing

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