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How is the increase in paid search ads going to impact the overall SEM environment?
Spending on paid search ads skyrocketed at the end of 2010. How is the increased reliance on this sort of SEM going to affect search marketing strategies and the industry environment in the near future?
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First I believe that paid search marketers will need to improve their strategies and execution of paid search. Marketers will need to ensure that campaigns are as optimized as possible to reduce their CPC's to the lowest possible level. On the other hand marketers will need to begin or improve their post click marketing so they are able to able to increase conversion rates and keep or lower cost of acquisition.
The increase in costs will also force marketers to look more at SEO and begin redirecting some of their budget's to organic search efforts. While the short term benefits are not nearly as dramatic as using paid search in the long run a well run SEO strategy will lower their cost per acquisition and reduce their dependence on paid search.
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