Aggressive bidding for search engine keywords is turning some retailers off

[mandy]

“Three years ago, Internet search was a good value for any retail category, but now it’s not always the value it was,” ... “It’s a great marketing channel when it works, but many retailers have become too reliant on it.”...

Internet search continues to be a major force in advertising, often accounting for 50% or more of traffic and sales acquired through online advertising, experts say. A study by web marketing and analytics firm WebSideStory Inc. found that the average fourth-quarter 2005 conversion rate for customers who arrived at a site via a search engine was 2.3%, more than double the average 0.96% from other online advertising sources such as affiliate sites and banner ads...

...effective search marketing requires what can be endless testing to find what works. The testing is not just in bidding on the right keyword or trying new content to optimize a site for natural search, but also in using new tools like algorithm-based bid management, optimizing landing pages to increase conversions and repeat traffic, integrating search with TV, print and other forms of advertising, and trying out new tools from the search engines themselves, including Google Analytics and MSN AdCenter...

full article: http://www.internetretailer.com/article.asp?id=17744