In a new report by a Conductor, a New York Company, that analyzes paid and organic search strategies of Fortune 500 companies they found that Fortune 500 companies spend $51 million per day
in aggregate on 88,792 keywords, and only 20.82% rank in the top 100 of
natural search result. This means that 80% of the $51 million a day,
$40M a day is completely waste.
The study, measures the maturity of
natural search efforts in comparison with the pay-per-click (PPC)
spending. The study also examines whether investments for paid search
terms made by Fortune 500 companies are paying off. The company published a similar study in November 2008, but this time it looked at the top 200 keywords, rather than the top 10. It also considered branded keywords.
“It remains alarming that although we included branded keywords in
the study for the Fortune 500, more than the lion’s share are not
showing up anywhere in search results for their most important
keywords, including their own names,” said Seth Besmertnik, Conductor
CEO.
“As a group, the Fortune 500 continues to remain largely invisible in natural search results.”
When you start thinking about $40 Million dollars spent a day to get
moved up on the search food chain it shows hwat a bargain toys.com was
at $5.1M.
It also shows you the amount of money being spent trying to build traffic, we our domains naturally have.
One day these companies are going to wake up and take some of the
daily tens of million and do what they should have been doing for over
10 years now, by domains that have natural traffic covering any of
their businesses, brands or products.
Here’s a great example.
3 weeks ago I went to a movie and of course you have the
commercials. One of the commercials was for a new dove product for
damaged hair.
The 60 second commercial talked about the product, how it works and how it fixes damaged hair.
The next night I saw the same commercial run during a prime time show.
I couldn’t tell you the name of the product, just that it fixes damaged hair.
The next day I bid on the domain damagedhair.com that was at namejet.com and won it for $1,900.
I figured if a company is going to spend millions advertising a
product specifically for damaged hair, how could the domain not be
worth a couple of thousands.
Would’t Dove, owned by one of those Fortune 500 companies, have been
better off buying that domain for $50K then spending money trying to
move up in Google under the keyword damaged hair, especially
considering that 80% of the time, they miss?
How about pending this money in the PPC channel.
The Fortune 500 through their Madison Avenue reps have always talked
about not spending more money onliner advertising “because there are so
little metrics or accountability” yet they are willing to through away
collectively $40M a day on ineffective methods. If they put the whole
$51m into PPC advertising wouldn’t that be more effective than spending
it on something that failes 80% of the time?