Online News Article

Exporters “Search” for a Big Boost From Online Advertising
By Leslie Levy August, V.P. New Business Development
Corporation for International Business
October, 2004

Summary:

Advertising on Internet search engines, Search Engine Marketing, is a low-cost way to test foreign markets and generate overseas leads. When used in conjunction with other promotion techniques such as product demonstrations, local distribution, international trade missions and exhibitions, search engine marketing can boost export sales.

Ready, Set, Sell! Or Not…

Now that you are ready to sell, what’s the most inexpensive way to find leads and customers abroad?

The research is complete and your product, if exported, could compete effectively in another country. According to a freight forwarder the tariffs aren’t prohibitive. To address concerns about any technical requirements a sample was shipped overseas duty and tax-free as “boomerang freight". It seems the packaging and technical requirements are manageable and won’t require a significant investment. And the product is suitably environmentally safe for the country of import. Finally, it can be sold for less than the price of the local supplier. Promising news but how do you find buyers at an affordable cost?

Finding a steady stream of qualified leads, particularly overseas, can be a major challenge – often large enough to avoid looking to foreign markets for expansion.

A major complaint about trade lead websites and lists is that the information is too easily available. Everyone in your business is competing for the same international leads. You get outbid and under priced.

Traveling to a foreign market to try to develop leads is costly and time consuming. Finding the right distributor could be an answer but you might want to push qualified leads to the distributor as well as relying on their network of connections.

You’ve been reading about the Internet’s potential for reaching customers using the World Wide Web. What could be cheaper than having a prospect come to your web site, see your message and become a qualified lead or even make a purchase? Even the Internet connection is at his cost. Unfortunately, banner ads, e-mail campaigns and flashy web sites have failed to generate the kind of traffic and resulting leads that might fulfill the promised potential.

Enter Search Engine Marketing (SEM).

SEM is a relatively new industry[1] that has grown up around the success of search engines such as Google, Yahoo, AOL Search, Ask Jeeves, MSN, Lycos and others. It encompasses:

• search engine advertising including pay-per-click advertising
• search engine public relations including optimized releases, RSS feeds and blogs
• search engine optimization of a web site including site design to achieve top listings

The advent of pay-per-click advertising on search engines offers exporters an affordable, reliable method of getting listed on the first page of search results. Advertisers only pay for the ad when someone clicks through to their web site and costs can be easily controlled to adhere to an online advertising budget. Results can be measured and adjustments to the advertising strategy and tactics can be made quickly and easily. It’s a marketer’s dream come true.

Placement on the first page of search results is the Holy Grail. Ranking highly in the natural (organic) listings is a function of good search engine optimization of a web site and relevancy of a web site to the information being searched for. Ranking highly in the paid listings depends on relevancy as well as the price of the search terms you are buying or bidding on. Combining the two types of listings, natural and paid, on the first page of search results delivers a one-two punch that can significantly increase traffic to a web site. By also adding newsworthy content to your web site that is picked up by the news search engines you can create a powerful online marketing mix. And there is virtually no geographic limit so exporters can easily target overseas markets.

SEM has had explosive growth. Now valued at US $4 billion[2], it is projected to be a US $7 billion industry worldwide by 2007[3]. Paid search listings totaled $1.6 billion by the end of 2003, making up twenty-five percent (25%) of total online advertising spending. Three years ago, it made up only ten percent (10%) of spending[4]. “Search” as it is referred to in the trade, has powered an online ad revival.

Why “Search”?

Eighty percent (80%) of all traffic to websites comes from search engines[5]. Whether your website is an e-commerce site or a lead generator, it makes sense to have an online advertising strategy that includes search engine marketing. This is especially true when you are trying to reach potential customers or distributors in other countries.

Search engine marketing is the most significant advance in marketing in recent memory and it lends itself to businesses that want to expand existing international markets or open new ones. The biggest benefit of SEM is its ability to generate qualified leads or sales at a very low cost. The more remote or distant your target market is, the larger this benefit can be.

SEM works because search engines are in the business of providing relevant information to searchers. As the result of searching on a particular key word or phrase, searchers receive a list of results (web sites, news articles, reviews, price comparisons, product offerings) that relate to that key word.

Relevancy is at the heart of a successful search. If a search produces results that have nothing to do with what you are looking for, you stop using that technology to get information and/or that search engine. It follows that if your business’ web site is relevant to a searcher’s inquiry that you want your web site to be part of the results that are provided by the search engine. Those results could be natural, paid or both. Both is optimal.

If someone in the U.K. searches Yahoo for irrigation equipment, and your company exports irrigation equipment, it makes sense to employ a search engine marketing strategy that has your company listed in the Yahoo U.K. search results. Then the U.K. searcher has the option to look for more information about your product. At the same time, you have accessed a potential customer in a foreign market for a relatively low cost compared to other lead generating methods.

Key Issues

Decide whether you will do SEM in-house or outsource the SEM.

After your initial research select someone internally to implement an SEM plan or to manage the resources of an outside service.

Whatever you decide, utilize software to measure results.

There are several useful free tools as well as other affordable options that provide extensive reporting.

Budget for a test pay-per-click search engine advertising campaign that you can use to develop and refine your online marketing strategy.

Google and Overture (the pay-per-click program for Yahoo, MSN and AltaVista) have 94% of the search market[6] and the Google AdWords program is extremely easy to get started with. You can be running a campaign within 15 minutes of logging on and Google is in 250 countries and offers ads in 39 languages. You can target specific countries and even do regional targeting within certain countries. There is a $5.00 set up fee and other charges are based on the rate per click you are willing to pay and how high you want to be listed in the sponsored results. Overture is in 15 countries including Japan and Korea and is also easy to set up and use. However, it takes 3-5 days to get editorial approval for new ads so there is a delay from the time you set up a new account until the ads begin to appear.

Europe-focused PPC search advertising options are Espotting and Mirago. Espotting has a presence in ten European territories - UK, France, Germany, Spain, Italy, Ireland, Switzerland, Sweden, Denmark and Norway. Mirago's search partners range from specialist European search sites to global sites that have elements of European traffic, which can be geo-targeted. There are also several search engines that are unique to a particular country. If you are targeting specific countries it is worthwhile to research which search engines have market share in your country of interest. Danny Sullivan’s site, Search Engine Watch, is an excellent resource for this type of information.

Design an online marketing program that integrates with existing international marketing strategies and overseas opportunities.

SEM doesn’t replace traditional methods of export expansion such as in-person product demonstrations but it adds a powerful tool to your marketing mix. Free trade agreements, duty and tax-free exports , government export assistance, trade advocacy, trade missions, trade lead web sites and print publications, international trade fairs and exhibitions, U.S.-foreign chambers of commerce, trade associations and EU harmonization are some of the many tools, resources and opportunities there are to help sell products and services internationally. They needn’t be ditched in favor of SEM.

An online marketing program, and specifically a pay-per-click advertising program on a search engine, should support but not necessarily replace existing marketing. For instance, pay-per-click ads are a way to push foreign prospects to a web site landing page that advertises your participation in an international trade show. Or perhaps you have organized a cost-effective product demonstration abroad by shipping your product duty-free and tax-free using an ATA Carnet. Online advertising on a search engine can get the word out to prospects that are in the market for your product and want to see it demonstrated locally. Pay-per-click ads can also promote a free product for review to a foreign prospect. Products for review can be sent cost effectively to over 67 countries if they are members of the ATA Carnet system.

Make your web site viable for your foreign audience.

Consider translating pages for foreign language speakers and using terminology that is localized. Avoid jargon, slang and expressions that foreigners might not understand. Get opinions from people who understand your business and speak the language of your target audience.

Design or modify your website to be optimized for the major search engines.

This increases the chances of your website being listed in the top ranked natural listings for relevant searches.

OK, I’m Interested…

So what’s next? To find out more about SEM, talk to your webmaster, marketing director or advertising agency, research the site www.searchenginewatch.com, consult with an SEM firm such as The Karcher Group (www.thekarchergroup.com) or contact SEMPO for additional information or referrals. Understanding the medium and the industry will help you craft an online advertising strategy that utilizes SEM and drives targeted traffic to your site.

Corporation for International Business is an appointed Carnet Service Provider for the United States Council for International Business, and a sponsor of the US Boomerang Team. More information about carnets and “boomerang freight” is available at ATACarnet.com.