Issue dated - 16th June 2003

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SEO, the next battleground for Web marketers

Search, once considered a commodity service, has moved centrestage with more and more users tracking websites through search engines. A host of small Indian firms have sensed this rapidly emerging opportunity and are using specialised search engine optimisation (SEO) techniques to boost their client’s rankings on search engines. Srikanth R P has the details on this new trend

Binoy Pillai says SEO gives a psychological branding advantage to the user company over sponsored listings

Imagine if you are given the task of finding out a particular fish in the ocean with only a tiny fishing net, without even knowing the location of the fish. Impossible, right? Now extend this analogy to the information available on the Net. What are the chances of an average user finding out about your company’s website? Almost zilch, if you consider the statistics.

With close to 407.1 million users, 33,942,187 domains, 25,675,581 websites and over one billion pages, the Internet is nothing short of an ocean when it comes to information. So, hoping that a user would find relevant information about your company by just putting up a Web presence is way too ambitious. But unlike the ocean, the Internet has got helpful guides in the form of search engines like Google and Altavista, that scan and index millions of pages to fine tune a query and get relevant information.

Search, once considered a commodity service extra by online sites, has today become an important and strategic tool in acquiring prospective customers. Hence, if you find that your company is not even listed in the top three results pages of a top search engine like a Google or Altavista, maybe it is time to talk to some search engine optimisation (SEO) firms, for your competitor must have already done so. SEO firms are specialist firms which tweak Web pages, content and also make a host of submissions to search engines so that the next time a user types a keyword search on Google, your company will appear on the top of the rankings for the specified words used.

Stll not convinced? Consider the example of a leading handicraft manufacturer in India. Despite being the best in the business with rates no other competitor in the country could match, the manufacturer found himself losing business to his more-expensive rival. Upon investigating, he found out that his rival had sought out the services of a search engine optimisation firm. Whenever an user from anywhere in the world used to type in the words ‘handicraft manufacturer India’ on Google, the rival’s site was listed on the first page of the results. Serious buyers who wanted to procure handicrafts from India sought out the services of his rival’s firm. His own site, despite having competitive rates and more categories, was ranked on the fourth page of Google. It takes no whizkid to figure out why he was losing business. Today, he is eagerly talking to SEO firms to help make his company appear in topmost search engine rankings.

Importance

The importance of optimising your site for search engines becomes more relevant when you consider the fact that only a serious user would consider coming to your site through a search engine. Says Binoy Pillai, CEO, Brandtrix, "At the end of the day, what counts for any website or companies that operate online is the serious/relevant traffic it generates. And search engines are the most cost effective way to drive serious visitors to your website. Whoever is coming to your website through search engines is spending his time and energy to find the product or services you offer. Hence, if your website is not placed in the top 20 search engine results, you are undoubtedly losing prospective clients." These facts are corroborated by market statistics.

For instance, a report by Jupiter Media Metrix states that 28 percent of Internet users type a product/service name into a search engine, 9 percent type a brand name, 5 percent type a company name and 5 percent go to a search engine shopping channel. The report also states that a majority of online traffic is generated through Google, Yahoo, Inktomi and FAST search engines. Also as 90 percent of users generally do not go beyond the third page of search results, it is of utmost importance that a website or product gets listed within the top three pages for the relevant keywords for it to get any traffic.

Cost effectiveness

Unlike traditional forms of advertising, running a targeted SEO campaign can help your company not only get serious buyers, but more importantly do it cost effectively. Explains Prashant Deorah, CEO, Puretech Internet, "The RoI for SEO is excellent when compared to any other form of advertising as one gets better conversion rates, lower cost per click and lower acquisition costs. A study by market research intelligence firm NPD group says that "consumers are more likely to purchase products after seeing search engine listings versus online banner advertisements." The same market report states that high search engine listings drive the highest awareness or branding for a site, with consumers recalling websites 60 percent of the time from search engine listings and roughly 20 percent from online banner advertisements. Companies are also gradually realising that their customers did not stumble upon their site by accident. They were actively searching for a particular product through search engines. That’s exactly the type of audience most companies would like to cultivate.

Sponsored links vs. SEO

Though search engines like Google have the concept of sponsored links, wherein an advertiser’s services or product name gets thrown up the moment the user types in a particular set of keywords, SEO players believe that their concept is more cost effective and promising. Since a normal search engine optimisation programme takes almost 90 days to achieve results, advertisers who want to go live quickly prefer sponsored links but in the longer run, a SEO campaign is more cost effective and strategic.

Says Vishal Sampat, director, Convonix Inc, "Sponsored links and pay-per-click programmess (the green boxes on the right-hand side of Google) work on the bidding model. You select a keyword and bid on it. The highest bidder gets his ad displayed on the top. Each time a user clicks on your advertisement, the search engine will charge you your bid amount. While initially it is a good idea to go in for a pay-per-click program for immediate exposure, this works to be expensive in the long term."

Vishal Sampat says SEO is not an overnight process and the results could take 8-16 weeks to show

In terms of cost effectiveness too, there is a huge difference between using SEO techniques and sponsored links. Explains Pushpendra Singh, webmaster, IndiaInternetmarketing.com, "The average per-click rate for sponsored links on Google is around $1.72, while through the SEO techniques you get top placement with an average click-rate of 50 cents only. It is been proved that you get around 30 times more traffic in SEO links than in sponsored links by investing the same amount."

Additionally, SEO companies believe that a listing achieved through an SEO campaign gives a psychological advantage over sponsored links. Says Pillai, "When a person sees the sponsored listings, he knows that the link is there because the company paid money to the search engine to advertise there. But when he sees a site within the normal search result page he thinks it is because of the quality of the site. This gives a psychological branding advantage to the company over the sponsored listings."

Current scenario

Though the market is still nascent, awareness about the SEO concept is increasing gradually and business is looking up for specialist SEO firms. And going by the experience of the magic the SEO wizards have worked, business is certainly looking up. There are numerous examples in both the domestic and international market, where SEO firms have tweaked sites and increased the number of visitors.

Take the example of CCAvenue.com, one of India’s leading payment gateway providers. CCAvenue’s SEO consultants, Brandtrix, made sure that whenever one typed ‘payment gateway India’ or any related keywords, the CCAvenue site showed up in the top 10 results. Another example is Mumbai-based Rhombus Technologies, where the number of visitors to the site has increased after it optimised its website using the help of Puretech.

Tech companies are not the only ones swinging to the SEO tune. Mumbai-based Bombay City Eye Institute wanted to create brand awareness and promote its various eye care and ophthalmology services like cornea transplant and surgery, cataract surgery and glaucome treatment to both the local and international market. In came SEO specialist firm, Puretech who fine tuned content and tweaked its website structure. The result—whenever anyone entered the words ‘retina surgery’, ‘Glaucoma treatment Bombay’, ‘Cataract surgery Bombay’ or ‘Cornea surgery’—the institute’s site got listed in the top rankings on major search engines. Not surprisingly, today all these companies have seen an increased number of serious visitors to their sites.

While enquiries from the domestic market are picking up, the real big potential for Indian SEO firms could be in the international market, where the familiar cost advantage can be leveraged. Indian firms roughly do the same job at only 50 percent of the cost that a SEO firm in the US or Europe charges.

Says Pillai, "India has started making its mark in the global SEO outsourcing industry. Currently, development companies in the US and Europe are approaching us for partnerships to provide SEO services to their clients. We have also started dealing with major SEO companies in the US and Europe, wherein they outsource their work to us. Another market which is proving to be lucrative is the small business segment in New Zealand and Australia, from where the number of projects coming in is on the rise. Currently, over 50 percent of our business comes from the overseas markets. We have clients from over 15 countries, mainly the US, Europe, Australia and New Zealand." Looking at the quality of services Indian SEO companies provide, international firms are gradually increasing their SEO requirements to Indian firms.

For instance, BrandTrix has just done a SEO optimisation campaign for the New Zealand School of Travel & Tourism, an organisation offering IATA training in Auckland, New Zealand. The result—whenever one searches for ‘IATA training institute’ in Google, the organisation is positioned above the official IATA website. Not surprisingly, more and more organisations prefer Indian SEO firms for their SEO campaigns. Firms like Puretech have seen an increase in business coming from abroad while Convonix derives around 80 percent of its business from overseas markets.

Prashant Deorah says the RoI for SEO is better as it delivers better conversion rates, lower cost per click and lower acquisition costs

Challenges

Being a nascent trend, there is a still a lot of misconception in the market about the benefits of search engine optimisation techniques. Says Sampat of Convonix, "A lot of people come to us expecting to either see an overnight increase in traffic or asking us to submit sites to 5,000 search engines. This is because they themselves have received a mail saying that a software does that. The truth is that there are 20 top engines that account for over 95 percent of search engine traffic. Most of the other 4,980 search engines get less traffic than a personal website does. Also, SEO is not an overnight process. The results take 8-16 weeks to show, but if properly implemented and persisted with, SEO shows substantial savings over any other method within a few months of tweaking and optimisation."

Additionally, there are numerous fly-by-night operators in the country who charge clients extremely low fees without taking into account the quality of the rankings. Says Deorah of Puretech, "SEO is no trifle task. It is an art and science of applying the knowledge and experience gained over the years researching the search engine’s distinct algorithm and unique indexing parameters. But this industry is plagued by numerous small time players who promise clients submissions by just purchasing a software that automatically submits your site to numerous search engines."

Naturally, the quality of rankings such firms promise is never achieved and it gives a bad name to the entire industry. There have also been numerous instances where search engines like Google have banned certain sites because their SEO firms have been indulging in spamming search engine submissions. Additionally, many firms convince clients that increasing the density of keywords to the amount of text on a page guarantees top listings in Google. This is far from true. For instance, if you were a handicraft manufacturer in India and you repeat the keywords ‘handicraft manufacturer India’ about 50 times in your Web page, Google is likely to treat this as spam and it could well result in your site being banned.

Conclusion

Till last year, Indian SEO companies had to approach clients and convince them that search engines are important marketing tools, but now companies have started approaching firms specialising in SEO. SEO players claim that business has grown at least three times compared to the amount of deals done the last year. While awareness has yet not reached its full potential, the industry is certainly getting more aware of the importance of SEO techniques. The next time you type in an innocuous word in Google, remember that an Indian SEO firm could be tweaking the pages behind the scenes for the rankings you see.

How Websites are discovered
Comparison of promotion techniques in generating sales and traffic
The science of SEO

Search engine optimisation is not a job that can be done by an automated software agent, but it’s not rocket science either. The first thing that any SEO firm does is conduct research on the type of market a company is operating in and design the content of the webpage in a manner that includes the keywords. Over here, it is important to know that not everyone searches the web in a particular fashion. So if you are a firm selling ‘software encryption products,’ it will help to include keywords like security product, software encryption and even ‘protecting files.’ The key here is to predict the way a normal Web user thinks rather than how the marketing whizkid does. SEO firms also optimise the site structure. For instance, many search engines do not crawl dynamic sites or sub pages with framed sites. SEO firms hence work on optimising the home page and making site modifications so that the search engine can crawl through the entire site.

Next comes the submission of the home page and sub pages to top engines and various directories such as Yahoo!, LookSmart and Open Directory Project. Simultaneously, the SEO firm exchanges the website’s links with other sites which have the same theme. For example, if a client has a jewellery site, then an exchange of links with other jewellery sites is done to boost popularity. SEO is not a one-time process and an SEO firm has to continuously observe the rankings in the search engines and tweak up the site to accomodate changes in the search engine algorithms. For instance, when search engines change their algorithms some websites get dropped from the top rankings. Hence, an SEO firm has to run periodic reports to gauge the position of a particular site on various search engines. After all the hectic work, it is a patient wait till the site gets to the top of the rankings. Players like Puretech have gone one step ahead and offer a live ranking of the client’s website on different search engines.

Case study: How Vertexera.com used SEO techniques effectively

Vertexera.com, a US-based firm, deals in targeted mailing campaigns and lead generation campaigns in the B2B sector. It promoted its campaign and services primarily through its website.

Status before SEO
The site was marketed using PPC (pay-per-click) techniques from Google and Overture. The monthly budget for PPC was $2,400. The average cost per-click for each keyword used to be $0.81 and the average cost per lead used to be $14.72.

  • B2B lists 1
  • B2B leads 10
  • Targeted mailing lists 8
  • Targeted mailing campaigns 2
  • Lead generation programs 1

In stepped specialists from SEO firm Convonix, and used primary keywords like B2B lists, B2B leads, targeted mailing lists, targeted mailing campaigns and lead generation programs in the content of the site.

Keyword rankings after six months of SEO for the company on Google. For instance, when a user typed in ‘B2B lists’ on Google, the ranking was first and for ‘targeted mailing campaigns’, the ranking was second. See table.

The results
The estimated cost if PPC was used, would have been 422 X 0.81 = $341.82/ day. The average cost per unique visitor from SEO techniques came down to $0.078 from $0.81 and the cost per lead reduced to $1.43 from $14.72 using PPC techniques.

Conclusion
SEO has proved to be cost effective in reducing the cost per lead by over ten times compared to PPC.

PPC & SPC cost per lead

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