Brick-And-Mortar Retailers Losing Search Battle
- by Laurie Sullivan @lauriesullivan, February 6, 2009
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. 
Why does everybody on the Internet have such a loose approach to the distinction between "Loose" and "Lose."
Don't Be a Looser! Spell rite and spel ofen!
LOL I was going to reply about the same thing.
A worse one was when they were writing an article about Hyundai and they used Honda in the text once instead of Hyundai.
This is definately why I here it is important to use won, maybe to proofreaders, or ewe can loose you're reader loyalty.
Yes egregious typo.
Overall this article makes me sad because it just doesn't have to be this way. There are literally thousands of working search engine optimization (SEO)/marketing professionals - or even web designers ramping up into the marketing category - who can help a small business outperform much larger competitors.
The main obstacle, from my point of view, is education. I know business owners that will spend $4000/mo for a billboard near popular intersections, or $3000 for a print placement in Southern Living, bought through ad account reps who don't track any ROI, but who balk at itemized SEO work as low as $500/mo.
I'm not talking about the cold calling SEO churn and burn type SEO business here, I'm talking about "A List Apart," Aaron Walter, New-Riders-Press style, white hat hard work that typically puts a website into the top 10 within a few months (or better).
And part of the education problem is our own fault, I think. I've got to do a better job of illustrating my own benefits to the business owner, just as the SEO-marketing-new media industry as a whole has to establish some credibility on main street. The need is huge.
And it happens all the tyme.