Here is an article by Perry Marshall in which he describes situations in which search engine marketing (Adwords, SEO) are not as effective as some of the alternatives. It basically boils down to this: people who use search engines to find products, services, information, etc. are doing so because they have a very specific requirement right now.
So the type of responses you are likely to get to searches (both free and paid) are going to be for simple products that are clearly defined, and that the searcher already has a clear idea about. As Marshall says:
Keyword based advertising only works when people know they have a problem and can describe it to themselves and believe that somebody on the Internet has a solution.
But there are many "problems" that do not fall into this category. And there are many products that cannot be easily squeezed into this mold. Marshall describes some of them in this article...
http://perrymarshall.com/google/othermedia.htm
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