Traditional Advertising vs SEM (adapted from Paul Therond’s article)
Search engine marketing (SEM) is the new frontier in advertising and promoting businesses Internationally and here in South Africa. How does this affect traditional advertising? ( This information was complied from a post by Paul Therond )
SEM as an advertising medium is found purely on the Internet whereas traditional advertising such as billboards, TV advertising are promotes businesses in the traditional off line sense
Online Marketing and promotion is all about content and information and satisfying that need in people who are looking for answers. Real world Advertising it is all about location and those who have the best location and biggest advertising spend will get the customer’s feet into their store.
However the beauty of SEM is that it allows smaller businesses to compete with much larger businesses as he who provides the most credible information correctly optimised for search engines will win the customer. (Feet through his website)
Let us look at an example:
Client A who is a seller of electric generators decides to use search engine advertising using pay per click and organic search engine techniques and is able to get on the 1st page of Google for 6 of his keywords. In order to achieve this client A is able to generate 1000 targeted customers for his sales page website where he sells the generator from. From this he is able to achieve a 3% conversion rate on sales totalling 30 generators sold.
Now the true success of this campaign could only be measured by knowing the costs incurred to sell these generators and the price he is charging his clients. However I would like to make a key point in how this advertising campaign differs from a traditional advertising campaign.
What’s the difference?
In traditional advertising the business would place magazine adverts, create billboards, hand out flyers, glossy brochures etc to sell his generator. Now one of the differences is that the customers would not be targeted as in the search engine example. However there would also be a bigger audience that this advertising media reaches.
“Now think about this, if all this traditional advertising created 1000 leads for the business and 1000 people physically came into the generator shop I can guarantee that there would be a higher response rate than the 3%, because those clients would be physically invested in the store and make a purchase decision. The only question is how much would the company have to spend on traditional advertising to generate all those leads?” And therein lies the fundamental difference and question, as using traditional advertising makes it very difficult to measure return on advertising spend.
“However using online marketing techniques like SEM means that we can track every dollar spent and determine the best strategy for the best ROI. However you might be asking why you would get a lower response rate from the search engine advertising compared to 1000 people coming through the store.”
“The answer is quite simple because on your Internet browser there is a button called back which makes it so easy for your potential clients to compare you with your competitors. The person with the best proposition wins! However when you have 1000 customers coming through your store it is a different situation as the next generator store, who is your competitor, could be across town.”
“For the best ROI , I would go with SEM as it is a more cost effective solution than other more traditional forms of Advertising.”

