If a battle were fought across Internet search engines to crown the business segment most SEO-savvy, traditional brick-and-mortar retailers would crawl home battered and bloody. That's according to a
three-year research study by marketing firm Internet-Engine.
The Retail Search Presence Study compiles search results from Google, Yahoo and MSN Live during the holiday season. The
results reveal that brick-and-mortar retailers are returned in search engine query results far less then manufacturers, media and hobby companies, comparison shopping sites and online retailers.
Considering the closures of hundreds of retail stores such as Linens 'n Things, Circuit City, and FAO Schwartz, Internet-Engine CEO Thom Disch has been surprised at the lack of attention by
traditional retailers to search marketing and search engine optimization. "Traditional retails are more familiar with broadcasting their brands, rather than information on products and services," he
said. "That's why you're seeing some overall growth in online businesses. Best Buy had the best presence overall."
For the most part, Disch said, brick-and-mortar retailers know how to place PPC
ads, but haven't really started to use SEO tools.
Analyzing 6,000 Web pages reveals that pure-play online retailers represent more than 30% of the listings, while brick-and-mortar retailers
consistently had the weakest presence of any group studied.
Putting it in perspective, consumers searching on the Internet will find three listings from online retailers for every one listing
from a traditional retailer. In fact, online retailers claimed 38% of the listings in 2006, 30% in 2007 and 35% in 2008. Compare this with shopping comparison sites at 25% in 2006, 26% in 2007, and
19% in 2008. Brick-and-mortar retailers lagged at 8% in 2006, 12% in 2007 and 2008.
The study from the Libertyville, Ill.-based Internet-Engine also compared SEO and pay-per-click (PPM) results.
In 2008, 17% of every 100 listings for online retailers represented SEO results, compared with 19% paid. Shopping comparison sites were 11% SEO, compared with 8% paid. Media and hobby came in at 12%
SEO versus 4% paid; manufacturing, 10% vs. 4%; and online retailer, 2% versus 10%, respectively.
The absence of traditional retailers in search engine query results means they must spend more
money on paid search listings, which will have a negative impact on overall profits. Investing in SEO techniques to increase free listings would help these traditional retailers by balancing their
listing placements--reducing overall costs and increasing market presence, Disch said.
In December 2008, Americans conducted 12.7 billion searches across engines--up 3% sequentially, according to
comScore. Early last year, Forrester Research estimated Internet research would influence about 24% of offline retail sales in 2008. The influence goes in both directions. Shoppers research products
in the store and then purchase online. Overall, two-thirds of online consumers engage in some form of cross-channel shopping for apparel, wireless products, consumer electronics, personal computers,
and large appliances. 