A presentation given by Q2 Interactive Media in August 2009 to a SEM Sales team in Denver Colorado. This presentation will discuss which is better; SEM or SEO and why. Questions about this presentation should be directed to Q2 Interactive Media by emailing info (at) q2im (dot) com or by calling 719-266-2299

1. SEM vs. SEO Presented by: Colorado Springs Web Site Design, Development, and Marketing Experts

2. About Us Founded in 2001 Focus on web site design / development Secondary focus on web marketing

3. So, which is better?

4. Which option is better? We believe that both are necessary to operate an effective web marketing presence. Depending on the clients, budget, knowledge, patience level, and marketing objectives, will determine which option is best to do first. We believe that all good search campaigns start with a paid program to identify (CTR) and (CA) before attempting to optimize a site. Source: elliance.com

5. Understanding the advertiser SEM SEO Predictability Unlimited Term Usage Quantify Results Low Time commitment Low Knowledge Level Easy Cost Control / ROI / CPA

6. Understanding Predictability SEO (Unpredictable) No finite timeline on top rankings (6-24 months) No guarantee on top rankings (always fluctuating) No way to specifically quantify traffic increase Traffic generated may not produce calls / web actions SEM (predictable) Historical data used to create campaign Quantifiable result tracking Acquisition reporting tools included

7. Understanding Term Usage SEO (Minimum) Proper SEO requires optimization for 5 or less major keywords. Organic placement is limited to those keywords SEM (Unlimited) Thousands of keywords can be used to generate traffic Maximum visibility

8. Understanding Result tracking SEO Results can be distorted with other marketing efforts Can take months or years to notice higher rankings and still may never get them in the top 2, ever. SEM 1st page rankings can occur immediately upon launch Specifically tracked with proxy pages Call and click monitoring for traffic generated

9. Understanding Time Commitment SEO Continuous monthly evaluations necessary Constant changes to the site Multi engine research to verify results SEM Self -optimizing No changes to the main website All major search engines covered with one program (RL vs. Self)

10. Understanding Knowledge Level SEO (FREE) - Complex High degree of Coding knowledge required Multiple search engine knowledge required No search engine support during process SEM (PAID)- Simple No coding knowledge needed No search engine knowledge needed Personal support during entire process

11. Understanding Cost Control… SEO – (Heavy up-front costs) Analysis - $100 to $250 per hour Implementation - $60 to $90 per hour Number of hours based on site size and initial structure No way to specifically quantify traffic increase Additional cost to monitor calls SEM (Consistent controllable costs) Free analysis of site needs and overall potential effectiveness Minimal up-front costs No developer to pay for SEO implementation Quantifiable result tracking Call monitoring included in campaign costs Acquisition reporting tools included Most cost effective methods of advertising compared to tradition media (Newspaper, direct mail, radio, tv)

12. “SEM seems pretty expensive.”

13. Common Objections SEM seems pretty expensive Compared to any other online advertising medium, SEM is the least expensive and the most consistent in cost across all mediums. SEO can be very expensive unless the client is trained in SEO guidelines and has the technology and education to do it themselves.

14. Cost benefit of SEO vs. SEM Although the long term cost per click (CPC) of organic rankings are lower than (PPC / SEM), there is a substantial amount of time in market required and a hefty initial investment to gain organic rankings. PPC/SEM remains consistent and mitigates initial barriers to entry. Source: elliance.com

15. “I can do it on my own.”

16. How does the buyer search for an advertiser? This graph shows that buyers have very little loyalty to any specific search engine. Although Google is the dominate search engine, they are far from keeping loyal surfers.

17. “More people use the ‘free’ (organic) side than the ‘paid’ side.”

18. Common Objections More people use the Free (organic) side than the Paid side. Although that statement is true, remember how often your site will actually show up in an organic result for the number of keyword terms you can use SEM for? The top 2 organic listings get 60% of the traffic. Challenge consistency of ranking Must be in the top 5 to be effective Minimal term use for optimization SEO is not Geo Targeted, so local relevant results are generally not listed.

19. How does the buyer FIND an advertiser on Google? This image shows that: -25% of users will click on a Paid listing -75% of users will click on an Organic (free) listing Source: Hubspot.com

20. “I already rank on the search engines.”

21. Common Objections - Cont. I already rank on searches The top 2 organic listings get 60% of the traffic. Challenge consistency of ranking Must be in the top 3 to be effective Minimal term use for optimization SEO is not Geo Targeted, so local relevant results are generally not listed for broad keyword terms.

22. “My web developer can do the SEO.”

23. Common Objections - Cont. My web developer can do the SEO. Qualify his / her training level What keywords will be used? What is does your link building campaign look like? Do they have a copywriter on staff? How will you keep from being blacklisted?

24. How does the advertiser feel about SEM? This graph shows that consumer trending regarding key marketing phrases (SEO, SEM, PPC) favors SEM 3:1 in Google searches. Source: imod.co.za/2009/05/29/seo-vs-sem-vs-ppc/

25. Conclusion SEO is higher in initial cost SEM is more consistent in cost over time SEO takes a high degree of technical knowledge and trust SEM requires little knowledge and trust can be earned quickly SEO is unpredictable and takes months to see results SEM is highly predictable and takes only days to see results SEO is limited in keyword scope SEM leverages massive amounts of available keywords SEO is search engine specific in development SEM is cross engine compatible w/o changes DO SEM FIRST THEN OPTIMIZE YOUR SITE FOR TOP 5 KEYWORDS

26. How we can help Landing Pages - Increase conversions with effective landing pages, leading to longer lasting, happier clients. Display ad creation - Quick inexpensive creation of display ads to support your clients marketing efforts. Technical Support - Don't get stumped by your clients. Ask us. 719-266-2299 www.Q2IM.com