Why do companies spend so much on advertising, when the benefit is so small, while they spend so little on SEO (search engine optimization), when the benefit is so large?
We’re all familiar with the fact that advertising has become MUCH less effective than it used to be. DVRs, DVDs, Netflix, new cable channels, online channels, mp3s, mp4s, ipods and smart phones all compete for a dwindling share of the consumer’s vanishing attention span. However, U.S. companies still spend about $30 on advertising for every $1 they spend on SEO. Why is that?
I believe that advertising is still popular because it is easily understood. Many people would rather spend money on something they know–even though they know it does not work well–than experiment with something they don’t know. Internet marketing requires an explanation. Search engine optimization can be confusing, and because it’s confusing, it’s SCARY.
Certainly, some business owners have bought into SEO programs in the past that were the wrong fit for their business, and not gotten the result they hoped for. (Of course, the same is true for many advertising programs.)
However, SEO, when done right, is MUCH more cost effective than an ad campaign. Perhaps the fact that companies are still spending so much on advertising and so little on SEO is good news after all. It means that there is much less competition for the companies who are investing in quality SEO!
To your success!