Sherman: Search Inflation Likely
"I think we're going to see explosive keyword inflation in the next couple years," Sherman said. "I think the missing piece is that big brands have barely started to play." Sherman noted that a recent study pegged search advertising at about $5.75 billion, but worldwide ad budgets are currently around $500 billion. "What happens if the big brands decide to move just 10 percent of that half trillion dollars into search marketing?" Sherman asked.
He added that most large marketers that turn to search will likely pour money into brand-oriented keywords--without regard for performance metrics like click-through and conversion rates. "A lot of these brands aren't going to care about the things we do--they're not going to care about conversions and click-throughs. They'll just want to block their competitors and get their brand out there," he predicted.
But even if premium search terms become more expensive, marketers can still achieve their goals by strategically bidding on less popular terms, Sherman said. "Start aggressively bidding on the 'search tail'--there are literally millions of those terms, and I think they're going to become far more effective. They won't give you the frequency, but in the end it's magnitude of results that matters. If you get the magnitude, you'll get the huge payoff."
Sherman also advised marketers to devote more resources to making sure their sites were optimized for organic search results, saying that many U.S. consumers report that they distrust paid search advertising.
Click here to view photos and listen to panel discussions from the Search Insider Summit.Recent Online Media Daily Articles
-
Coca-Cola Loses Bid To Dismiss Text-Spam Case May 24, 5:41 p.m.
Consumers can proceed with a lawsuit against Coca-Cola for allegedly sending them unwanted SMS messages, a ... -
Disaster Ready: Google Maps Model Quickly Adjusts To Events May 24, 5:29 p.m.
The four-lane bridge in Washington state that partially collapsed Thursday into the Skagit River was removed ... -
Pandora Beats Rev Estimates, Adds Subscribers May 24, 5:01 p.m.
Online radio service Pandora on Thursday reported that revenue rose 55% in the first quarter to $126 ... -
Real-Time Web Turns Consumers Into Impulse Buyers May 24, 4:37 p.m.
Video, mobile, social, and better search capabilities continue to make it easy for consumers to buy ... -
Mugnier Shares M&C Saatchi's Mobile Approach May 24, 4:32 p.m.
M&C Saatchi Mobile was formed three years ago through the acquisition of mobile marketing agency Inside ... -
Yahoo Search Experiments With New Look May 23, 6:30 p.m.
Yahoo Search has been experimenting with colors, features and layouts, as the company tries to determine ... -
Path Seeks Dismissal Of Wireless-Spam Case May 23, 5:07 p.m.
Mobile social network Path is asking a federal judge to dismiss a lawsuit alleging that the ... -
Amazon Appstore Goes Global May 23, 4:59 p.m.
Amazon may have been late to the app store game, but that hasn’t stopped it from ... -
Data Is Springboard For Product Development May 23, 4:44 p.m.
iProspect named Ben Wood to global president Thursday; he's tasked with growing the company's network and ... -
Vice, Twitter Partner For Mobile Show May 23, 2:14 p.m.
Simultaneously expanding its video and social strategy, Vice on Thursday unveiled #dailyvice -- a daily show ...
Be the first to comment on "Sherman: Search Inflation Likely"
Leave a Comment