When Do Search Budgets Make Sense?

The RKG Rimm-Kaufman Group, Wednesday, February 18, 2009 1:19 PM
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Do you need a fixed search budget? Maybe not, according to George Michie. Many of his clients view search as a direct marketing channel with well-understood ROI expectations. How much they spend is a function of market opportunity, not boardroom decisions.

After all, writes Michie, "Why would a company keep spending money when the ROI turns south? 'By golly, we're going to spend this last $10K even if it doesn't generate a sale!'"

On the other hand, "Why would a company stop spending money when the ROI is good? 'I know that every time I give you $10 you'll hand me back $11, but I can only spend so much...'Neither of these statements make any sense to us."

The one exception to the no-budget rule: companies with "some component of branding" in their search campaigns."The more divorced the goals are from profits the more budgets make sense."

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