New research shows marketers need paid and organic strategies to succeed online

April 4, 2008

Australia’s first major research study on consumer behaviour in online search has revealed that marketers who neglect their Search Engine Optimisation (SEO) strategies do so at their peril – even if they have a strong online presence through paid search listings.

The findings from the Research International study, commissioned by the country’s largest search marketing company Outrider, showed a high SEO or ‘organic’ ranking in tandem with paid search was essential to achieve best click-through results.

Up to 52% of people clicked on the advertiser’s link when both paid and unpaid listings were shown, compared to 37% and 34% for just paid and just organic respectively.

In addition, the research revealed that only one in three online users are able to identify the difference between paid and organic listings.

“It’s very clear that marketers and advertisers wanting the best results need to have a watertight search engine optimisation (SEO) strategy that delivers high rankings in organic as well as an SEM campaign,” said the head of Outrider in Australia, CEO Group M Search Asia Pacific, Robbie Hills.

“Marketers cannot focus solely on SEM or SEO but must embrace both.”

The importance of SEO also changes depending on the target audience.

Interestingly, when people were asked about viewing paid links/listings, the vast majority of people surveyed said they clicked on paid search listings. Approximately half of those surveyed said they do not mind paid links whilst 39% prefer the choice of both paid and natural results. Only 11% of respondents said they wanted natural only results.

“At one time, people viewed paid links on the internet with suspicion and tended to avoid them. But from our research, we can glean that there is a surprising acceptance of these sponsored listings now. It is likely that the presence of trusted, major brands in the paid search arena is creating credibility for paid links,” said Jonathan Sinton.

Another key finding was that word of mouth is a major influencer, ranking as high as TV and newspapers\magazines in driving people online.

Other key highlights of the research included:

• Almost three in five sessions on the internet involve search
• 70% use the internet as a phone book
• 44% have visited social networking sites
• Three in five people said they spend more time on search now than they did 12 months ago
• 85% use only one search engine, only 13% use two
• Three quarters of people use three search words or less
• Use of search on mobile phones is low

About Outrider

Outrider, formerly known as 24/7 Real Media Search in Australia, is a leading global search marketing agency, specialising in holistic, advanced search marketing strategies that are integrated with advertisers’ cross-channel media planning. Regarded for their thought leadership and recognised by Forrester Research as a leader in search strategy, management and client service strengths, Outrider provides integrated search marketing and consumer-driven media strategy at the global, national and local-market level to category-leading clients. Services include search engine optimisation, paid search, paid inclusion, and advanced search strategy (social search, mobile search, local search, video search and more).

Outrider is a WPP company and a division of GroupM, WPP’s media buying and planning arm responsible for 30% of the world's media buying. The Outrider network of 30 global offices serves more than 40 countries.

About Research International

Research International was one of the first research agencies in Australia, conducting research since the 1930s. Today the company provides custom research solutions for its clients around innovation, market strategy, brand experience and service measurement issues. The firm operates in over 50 countries, with offices across Asia Pacific. It has more than 2,500 staff and works with blue-chip clients around the world.

For further information contact:

Marcelo Silva
General Manager
GroupM Search Australia

DID: +61 (0)2 8968 4045

Jonathan Sinton
Strategy Director
Research International
DID: +61 (02) 9776 0270