Based on your resources, how do you determine the best fit for your business? Furthermore, what resources do you need before making a decision?
SEM calls for people, technology, and processes. While that may sound like a simple equation, it’s much more elaborate when scrutinized piece-by-piece. Finding and hiring skilled SEM labor, leveraging the appropriate technological tools, and staying updated on SEM developments require considerable resources.
A company must clearly define its available budget to support SEM goals. If a company has a small advertising budget, the only choice a website owner may have is to leverage free publisher tools. As a company grows, the services desired may require outsourcing to an agency. Of course, a higher budget provides more options for SEM services, reduces agency dependency, and provides the financial and temporal investment needed to build an in-house team.
The time-tested debate of outsourcing SEM or bringing the function in-house continues to rattle online forums, editorial columns, and blogs. As Internet Marketing grows, businesses are becoming more proactive in evaluating the alternatives of bringing the function in-house. Others, after experimenting in-house, have decided to work with outsourced partners. In the middle ground, a pendulum or hybrid model exists where in-house employees work together with an agency.
This white paper presents an overview of the applicable resources to implement Search Engine Marketing depending on a company’s SEM budget. Practical considerations, third party references, and testimonials are provided to help you decide what best fits your company’s budget and goals.
Resource Checklist
It’s easy to overlook key categories when SEM keeps evolving and new technology affects the industry’s practices. With so many competing priorities, it can be hard to sort out what really matters in SEM. Having a resource guide can be invaluable for small business owners, agency executives, mid-level marketing managers, and Directors alike. Beginning with Staffing SEM-Related Positions, the first half of this paper covers the resources Search Engine Marketers need to successfully put their strategy in motion.
People Resources – Staffing SEM-Related Positions
SEM professionals may be employed by an agency or for in-house work. The demand for qualified Internet Marketing specialists is on the rise and salary increases are outpacing most industries. Clients and agencies both want knowledgeable individuals who can roll up their sleeves and work. The skills desired extend to experience in building and optimizing campaigns, a sound understanding of offline and online customer behavior, and the ability to analyze data and draw conclusions.
According to SEM Times, some of the key SEM job roles include:
- PPC Campaign Executive
- PPC Campaign Manager
- PPC Account Manager
- Ad Writer or Copywriter
- SEO Director
- SEO Manager
- SEO Executive
- Content Writer and Edit
Besides the listed roles, companies also recruit web analysts, technical professionals, and web designers for successful SEM implementation and service. Given the industry is constantly developing, job responsibilities also change and new positions may be created. For example, the online public relations (PR) category has experienced significant growth over the last year resulting in a greater need for online PR writers and managers.
According to MarketingSherpa’s Search Marketing Benchmark Guide 2008, filling SEM-related positions, particularly SEO specialists is one of the biggest challenges companies face. Almost a third of respondents say it is “very difficult” to attract these employees.
In her DM News SEM column dated October 15, 2007, SEMPO (Search Engine Marketing Professional Organization) board member Sarah Holoubek says, “Given the extremely high turnover of SEM staff, the years of experience tend to be within managerial staff, and not the day-to-day account managers.” For any company, finding talent with a mix of skills – strategic, creative, technical, and organizational – can be extremely difficult.
A fairly young SEM industry combined with complex skill sets and a lack of industry standardization has made hiring qualified SEM staff a challenge for organizations across the board. In addition to hiring complexities, retaining talent adds to the challenge. Significant salary increases, flex-time, and other hiring bonuses keep many SEM professionals on the move.
Technology Resources – Creating a Technology Toolbox
Like a golfer armed with various clubs, SEM requires the implementation of specialized tools ranging in sophistication level for proper campaign management, performance, and measurement. The following table provides a list of tools cross-referenced with cost considerations and the skills needed to effectively leverage each tool.
Leveraging Your Resources with Emerging Media Options
There is no doubt the Search Engine Marketing landscape continuously changes. Countless websites, magazine publications, industry conferences, and scores of blogs are dedicated to documenting and discussing the evolving SEM environment. Emerging media such as the popularity of YouTube and new product releases from engines require Search Engine Marketers to commit the time and dedication to stay abreast of the latest updates affecting search activities. It’s not only a financial commitment but a temporal investment in ongoing education and training to effectively support SEM efforts. Some marketers have labeled the duty of ‘staying updated’ as one of the most difficult aspects of SEM because industry changes happen frequently and quickly.
Specific to SEM, the following diagram shows some of the emerging capabilities marketers reported to MarketingSherpa when asked “What’s In Store for Search?”
Each capability is a resource that can be integrated into a company’s overarching SEM strategy. For example, the world of social networking has exploded in activity. According to a new eMarketer report Social Network Marketing: Ad Spending and Usage, 70% of online teens and nearly 40% of Internet-using adults engage in social networking every month. The 2011 projections boost the number of social networkers to 84% of online teens and 50% of online adults. If your audience is heavily engaged in social networking, consistently visiting and using community-based sites like LinkedIn and MySpace, a plan must be developed to integrate it into your SEM strategy.
It’s important to remember Search Engine Marketing lies within a constantly changing, intricate realm. SEM can get even more challenging if marketers don’t have or take the time to stay updated on the latest developments. New techniques refine the trade and continue to push Search Engine Marketers to go beyond traditional practices.
Finding the Right Balance for Your Business
Now that you have a clearer view of the resources required for SEM, you can better evaluate if your company should keep the function in-house, select a full-service agency, or follow the hybrid model. When you first start a business, your choices are more limited. In this section, practical considerations for each alternative will be presented to help you decide on the right fit for your business.
Smaller Advertising Budget
Many company owners operate a one or two person shop with a small advertising budget. Filling multiple roles and nurturing the business rarely allow much time or money for building an in-house SEM team or hiring an agency. This often requires a website owner to leverage free publisher tools. Although a number of these tools are the same ones utilized by some SEM agencies, expertise levels will vary between a SEM specialist and a website owner responsible for several functions.
Keeping Activities In-House
Most SEM programs are complex, requiring specialized knowledge. Companies with a sizeable SEM budget have more leeway to build a strong in-house team. SEM is not typically delegated to traditional marketing staff. However, many companies have begun cross-training employees to execute online marketing and SEM activities. If a company wants to bring specialized SEM staff in-house, a salary budget of $60,000 to $90,000 per year plus benefits must be considered for each specialist. The number or specialists required will depend on a company’s budget along with the type and number of marketing programs implemented
In a SearchEngineWatch.com column dated February 27, 2007, co-chair for SEMPO’s In-House SEM committee Duane Forrester reports, “bringing search in-house is about one key concept: control.” Beyond control, Forrester lists the following benefits: immediate access to the knowledge, integration with the current workflow, and innate knowledge.
In many situations, bringing SEM in-house means building a new team or division. Many companies have in-house Search Engine Marketers that are just as good as the specialists provided by agencies or recruit specialists who have agency experience. Like any competency, SEM expertise can only be built by investing the adequate support. A solid in-house team must be proactive in marrying the business specifics with SEM’s rapidly evolving nature and technology.
Hiring a Full-Service Agency
The in-house benefits listed by Forrester aren’t completely out of scope when a full-service agency is selected by a company. Dedicated agencies will put in the required work to understand your business and its nuances. Since full-service providers offer a wide range of services within an integrated marketing package, they can be held more accountable for the ROI of a project.
Wendy Chou Le, Director of Online Marketing at FurnitureCentral.com, shared her company’s reasons for hiring a full-service SEM agency:
“We started out by doing our own Search Engine and Portal Marketing in-house. What we found was that we did not have a full understanding for the intricacies of each media channel which are constantly evolving. We wanted to find a company that not only understands but can stay on top of each channel. We also saw great value in capitalizing on a team’s knowledge and experience in handling multiple campaigns for a cross-section of clients. In addition, we could take advantage of the economies of scales in their support team that is constantly developing an in-depth tracking capability for quick and accurate decision making.
Initially, we looked for a team to only handle our PPC campaigns. After a successful three month test with our selected agency, we decided to go full force and hand over our portals, SEO, and strategy development. The agency was not viewed as an outsourced vendor. Instead, the team was treated as our marketing department assigned with defined objectives. Hiring a full-service team gave us one place to be accountable, a single point of responsibility.”
Businesses, such as FurnitureCentral.com, choosing to outsource SEM must perform the necessary due diligence to find a suitable agency. The steps involve:
Verifying the agency has the right skill set for executing your specific project
- Confirming the agency and its team have longevity and are compatible with your company’s values
- Visiting the agency’s facilities
- Talking to an agency’s actual clients for reference points
Most mid-size, well-established agencies have minimum fees ranging from $1500 to $3000 a month to meet minimum service levels and quality goals. Depending on the number of programs chosen, the fees can go higher. Companies spending less than $100,000/year in SEM media should consider boutique agencies specializing in small businesses.
Working with a full-service agency can provide dedicated marketing support and help free up a company’s valued time and resources. A company avoids having to find experts for each aspect of SEM, allowing more focus on other areas of the business.
Following the Hybrid Model
MarketingSherpa’s Search Benchmark Guide 2008 reports, “The allure to bring SEM in-house is growing stronger for many marketers, although the number of organizations getting outside help actually increased over the past 12 months. However, it’s becoming more common to use outsourced assistance as part, not all, of the overall SEM effort.”
As FurnitureCentral.com’s business has grown, their outsourced SEM activities have recently scaled back and more closely model the hybrid orientation many companies now follow. Online marketing managers are usually accountable for more than just SEM in their day-to-day activities. Multiple responsibilities plus increasing competitive pressure has helped develop the hybrid model.
The hybrid model consists of experienced or savvy in-house employees partnering with an agency for SEM strategy and/or execution. As described by MarketingSherpa, an organization outsources part, not all, of the overall SEM effort. Sometimes, this means only utilizing an agency’s proprietary technology for campaign optimization. Other times, this model treats the agency like a consultant for guidance and insight. Having successfully worked for numerous organizations across various industries, the hybrid method is more frequently practiced in companies’ with a growing marketing budget. For many marketers, this option offers the best of both worlds – control from an in-house angle and the specialized SEM skills of an agency.
The following is a testimony from a successful home appliance provider about transitioning in-house Search Engine Marketing efforts to partnering with an agency:
“When our company started five years ago, we were much smaller and held multiple roles. As our business grew, we didn’t have the time to produce the same level of results we had done in the past. Competition also grew. We no longer just competed against competitors but other companies such as marketing agencies. We quickly recognized there were specialists doing search marketing and doing a better job. That’s how we decided it was time to partner with an agency. We considered several proposals from five agencies. After our due diligence, we chose WebMetro because of their capabilities and the similarities in culture between our two companies.”
An agency can help provide an in-house team with training and support. More bases are covered and a system of checks and balances develops. The combination of agency expertise coupled with in-house proficiency can offer cost-effective and results-oriented advantages.
How Do I Know My Search Marketing Dollars Are Well Spent?
Are you wondering if you’ve made the right SEM choices? It’s normal to feel some angst during and after making a large purchase decision. Deciding which resources fit your Search Engine Marketing budget is not a lighthearted matter. Whether you’re spending $5000 or $500,000 a month on SEM, an audit process needs to be put in place to monitor how well your efforts are performing and if that performance can be improved.
Audits
Marketing audits are a fundamental process for traditional marketers. Like an annual physical or a financial checkup, an organization’s Search Engine Marketing strategy, programs, and results should regularly be audited. This allows for accountability and realignment of resources if needed.
An example of a high-level SEM audit:
- Competitive Environment
- Where is my competitors’ traffic coming from?
- By how much has my competitors’ traffic increased?
- Where are my visitors going?
- Targeting
- What demographic and geo-targeting am I employing?
- Which vertical search engines am I using?
- Am I testing landing pages with targeted content?
- Process
- Have I incorporated long-tail keywords into my campaigns?
- Are my pages getting spidered?
- Is my site architecture affecting my rankings?
- Messaging
- What value proposition am I advertising?
Is my ad copy effectively breaking through the clutter?
- Are my customers’ expectations met?
- Integration
- Am I integrating display campaigns with my SEM campaigns?
- Is my online PR manager working together with my SEM staff?
- What does Integrated Marketing Communications mean to my SEM efforts?
It is best to conduct an audit at established intervals during the implementation of the plan. By performing a methodical audit, a firm creates a management discipline for SEM analysis and monitoring.
Conclusion
The highly complex and constantly evolving nature of SEM can excite and intimidate marketers. New methods and tools will continuously be introduced further advancing how marketers employ SEM. With the enormous influx of businesses embracing SEM in the last few years, the industry’s landscape has been saturated with marketers targeting the same keywords while searching for new angles to break through the congestion. A company incorporating Search into its marketing strategy must understand the depth and breadth of resources required.
When it comes to the level of resources that best suit a company, one template is not used for all organizations. While budgets vary from company to company, successful SEM implementation mandates a high level of sophistication and many resources to achieve efficiency. Whether you’re new to the trade or have gainfully employed the practice in your overall marketing strategy, this white paper has been presented to assist you in making informed decisions for leveraging the right resources to fit your Search Engine Marketing budget.