Search Booming

Search Engine Guide has comments by Safa Rashtchy on the reasons:

Rashtchy feels there are a number of revenue drivers fueling the growth:

A second wave of small business just discovering search
The international growth of search
Discovery of the branding value of search
The growth of contextual search, with local search perhaps poised to take over

In addition, he sees four immediate and fundamental drivers of search growth. He collectively refers to them as T.C.P.C.

Traffic – More people doing more searches, especially commercial searches
Coverage – Expansion of keyword baskets, monetizing more search terms
Price – Increasing prices per click
Conversion – As we get better at converting clicks to buyers, advertisers are willing to bid more

Rashtchy summed up with five conclusions that state the future potential of search in no uncertain terms:

* Search is likely to become the most successful marketing method for all businesses
* Local search is a huge force that could change the dynamics of search for online-only merchants, putting them at a big disadvantage
* Concepts like broad match could make search an effective soft sell, suggestive advertising mechanism
* Merchants should focus on customer conversion and extending the customer life cycles
* Search providers should focus more on merchant conversion rates and offer lower charges for broad match and contextual search. They should also focus heavily on local and international expansion.

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.