WHAT IS SEO?
TABLE OF CONTENTS
The Increasing Relevance of Online Search
3
Natural vs. Paid Search
3
Explanation of Natural Search
4
Search Engine Optimization (SEO)
4
SEO vs. SEM
4
SEO and SEM in the Future
5
High Value SEO Activities
6
Low Value SEO Activities
7
Comparison of Activities: an SEO Partnership Hierarchy
8
The Potential Impact of High Value SEO: Entrepreneur Media
Introduction on Entrepreneur Media’s Online Strategy and Tactics
10
Entrepreneur’s Investigation into SEO
10
Entrepreneur’s Relationship with SEO Inc.
11
The Evolution of a Relationship
12
Statement Regarding SEO Inc.
14
TABLE OF
CONTENTS
Frost & Sullivan Whitepaper
2
WHAT IS SEO?
The Increasing Relevance of Online Search
Anybody who has followed the American financial markets over the past few years will be
aware of the meteoric rise of Google’s equity since its IPO in August 2004. Over a two
year period the price for one share of Google has moved from its initial price of around
$100/share, to the point where it commands close to $375/share. This growth in equity
value translates into a compounded average annual return of around 93%!
The explosive return of Google’s equity over the past two years illustrates the growth in
online search. Unlike Yahoo and Microsoft, who both have a variety of significant revenue
streams, Google draws its revenue almost exclusively from search based advertising
revenues. The explosive returns of Google equity therefore can be showed as an effective
proxy for the strong growth and awesome potential of the search marketing business.
Natural vs. Paid Search
What is interesting about Google’s search revenue though is that it is generated from a
minority of Google’s actual search enquiry click-throughs. This is so because Google search
revenue is generated solely from its pay per click (PPC) search advertising service.
PPC basically provides placement among search listings on an auction like basis. With minor
modification, PPC operates so that the highest bidder for a particular keyword/keyword
phrase at a certa