Search marketing requires ever greater oversight, analyst says
Internet retailers should take a close look at how they are managing search and search-related advertising, particularly in light of higher prices and rapidly shifting Internet demographics, Ken Cassar, director of Strategic Analysis, Nielsen/Net Ratings, will tell attendees at the eTail 2004 East conference in Fort Lauderdale, FL, next week.
While overall search grew by about 30% last year, the number of new Internet users is slowing. As Internet retailers look to compete against each other even more for certain keywords and placement on major search engines, Cassar says many retailers should first look to evaluate their return on investment by maximizing their analysis on who is coming to their site to shop and why.
"There is nothing wrong with being the second or third link, if those links deliver the customers you are really looking for," Cassar says. "Try to maximize ROI by not getting into a bidding war if it`s not necessary."
As the overall number of new Internet users who will initiate a search for the first time begins to slow, Cassar advises Internet retailers to concentrate on the fact that existing users are making multiple searches and to use their web analytic and search engine management programs to more thoroughly break down a user`s multiple search history to generate cross-selling opportunities.
"Advertising prices are going up as more bidders compete for a maturing number of Internet users, so explore the source of where your leads are coming from,” Cassar says. “There is opportunity in breaking down existing users and the multiple ways they are coming to a retail site to shop."
Cassar is chairing Day One of the conference and will speak in the general session at 8 am on Tuesday.
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