A Brief Historical Perspective On Natural Search, Paid Search And Competitive Forces

By Andrew Wetzler, President

 

A frustration I often hear when speaking with prospective clients is that some smaller competitor(s) are consistently scoring higher than they are in the Natural results. The gist of their gripe is that it's somehow not right or unfair that a smaller company is able to trump them.

 

This perspective is fascinating in that it reveals how far Search (SEO & SEM) has evolved and yet how little has changed. Rewind a couple of years to the early days of Google. They came in with an attitude and an approach that shook the evolving landscape. The main thrust of their model was that All Web sites are created equal. In other words, the size of the company wasn't going to dictate the hierarchy of their Natural results.

 

At the time, Paid Search (SEM) was also in its infancy, with banner ads being the most prevalent form of advertising. While I am sure that the brain trust at Google knew that Paid Search would one day be their ultimate revenue stream, they laid the foundation with incredibly strong branding around the accuracy of their Natural results.

 

The fact that the Web site of a smaller company can flourish, while one from a much larger company can be stuck deep down in the listings stems from Google's initial premise that size of company is not a component of their algorithm. There is nothing new here, yet so many organizations have still not made the modifications to their site architecture that would enable them to attain better Natural results. In many instances, those changes are outside of the control of the folks who manage any particular site. Content changes can usually be made at the site level, but architectural and linking modifications are elevated to a corporate IT department who has numerous responsibilities and very little time to wear their SEO hat.

 

Around the time that Google was making waves with their algorithmic results, GOTO was innovating on the Paid side. They were refining a very different model. Marketers, who were willing to spend the most per click, were able to rise to the top of the hierarchy. GOTO results were being displayed on the very top of both Yahoo & MSN, and Pay-Per-Click Search was headed mainstream. GOTO eventually changed their name to Overture and was ultimately acquired by Yahoo.

 

Fast forward to today, and we see that the more things have changed, the more they have stayed the same. Google's results are still Natural; not even a Paid Inclusion option. Thus, any organization that is committed to boosting their Natural presence needs to figure out a way to optimize their Web site appropriately. Strong Natural positions remain the preferred way to drive qualified visitors to a site, without paying anything per click.

 

Paid Search has grown to become a multi-billion dollar marketing channel that is producing unprecedented results for savvy advertisers. It has enabled companies who have not succeeded in SEO to nonetheless capitalize on the opportunity that qualified Search traffic can deliver. Furthermore, there is a lot of positive experimenting that can occur with respect to variables like keywords, ad copy, landing pages, etc. These can lead to incremental improvements in a program's ROI.

 

The latest twist in the industry is MSN's re-emergence into the field. Yahoo / Overture and LookSmart were the main providers of data (both Natural and Paid) for a long time. MSN began using their own Organic results this past February. Their mission is to create the preeminent Natural database of results. They are also in the late stages of testing their own Pay-Per-Click engine, which promises to be full of innovative features.

 

The percentage of companies' budgets that are being spent in Search today continues to grow. That applies to both SEO and SEM. Understanding the nuances of both channels and crafting a strategy that will work within your organization is key. If there is no chance of influencing the architecture of the site, keep Natural expectations in check. This industry has grown tremendously from every imaginable perspective. The ground rules though remain largely the same. Best of luck for the second half of the year!