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SEO and the ROI Debacle

Measurement Failings

Marketing executives didn't give exceptional ratings when asked to size up their staff's knowledge of the latest web marketing trends, strategies and technologies, according to the 2006 WebTrends CMO Web-Smart Report.

On a 1-10 scale, the weighted average for knowledge was 5.5% (only 4% rated themselves and their staff as experts.

Most marketing executives in the survey indicated that they will increase marketing spending this year (26% are targeting growth between 25% and 50%).

Spending makes sense considering online trends. Measurement is a different story.

For example, these executives were asked: "How would you currently rate your organization's ability to measure web marketing performance?"

  • 54% said they had data but there was room to improve
  • 23.6% said marketing is a weakness and needs considerable improvement
  • Only 15.1% said marketing is a strength in their companies

Two years ago, the Chief Marketing Officer (CMO) Council polled senior marketing executives about their marketing performance measurement systems. "Almost 80 percent of the senior marketing executives polled were dissatisfied with their ability to demonstrate their marketing programs' business impact and value," according to the CMO Council.

If they can't properly track advertising, how can they begin to assess the implications of search engine optimization?

Surprising data also came out in 2006 from the Association of National Advertisers in its third annual Marketing Accountability Survey (prepared with Marketing Management Analytics).

Marketers themselves may be doing a better job of measuring and following through on ROI data, but only 36% manage to coordinate their accountability efforts with finance or other cross-functional teams. In fact a quarter of respondents said their measurement activity is "siloed" inside the marketing ranks.

In 2005, an Association of National Advertisers survey found that 61.5% of marketing respondents believe advertising accountability should be defined and measured. But only 19% say they're positioned to do that kind of evaluation.

The marketing firm PARTNERS+Simons in 2005 examined the spending tendencies and perceptions of senior-level marketers at leading life sciences enterprises, including the instrumentation and pharmaceutical fields.

Although 59% indicated there is a process for "tracking and developing sales leads," only 27% called those processes "good," 45% rated them "fair" and the remaining 28% were divided between "poor" and "dismal."

VisionEdge Marketing, a consulting firm, in 2006 surveyed marketing executives who included measuring marketing performance as one of the three biggest priorities. And yet, a stunning 86% conveyed that they aren't pleased with their existing tracking.

Companies may very well be giving search engine optimization some attention, but it's clear that they're not succeeding.

JupiterResearch in the 2005 "Outsourced SEO Metrics & ROI Study" for iProspect tracked marketers who coordinated paid advertising while outsourcing SEO. Yet only one in seven actually measured the overall ROI combination of both the SEO and PPC programs.

Another 2005 JupiterResearch report for iProspect, "Natural SEO Outsourcing Study" found that 64% of businesses that outsource SEO "encounter obstacles that prevent them from implementing their vendor's SEO recommendations." Companies cited a lack of personnel, budget, and time related to site or document updates. The study also indicated that SEO firms don't always establish reasonable goals or client expectations.

Among the top 44 largest software firms - many Fortune 500 - 25% were not sufficiently optimized for search engine visibility, according to MarketingSherpa's "2006 Business Technology Marketing Benchmark Guide."

In the Search Engine Marketing Professional Organization (SEMPO) 2005 survey, 37% of companies said that senior management was at least moderately interested in search engine marketing practices. More intense interest and buy in would go a long way.

The following business survey suggests there is more interest in SEO than we've seen, but it may be a case of activity - not necessarily effectiveness.

For example, more than 50% of companies use search engine optimization to some degree to improve their Internet visibility, according to Interland's 2005 "Summer Small and Medium-sized Business Barometer."

Read excerpts from this SEO study online: