- 44
- Sphinn It!
Posted By: jennosborne 161 days ago
Topic Type: News Story (Jump to http://www.searchenginepeople.com)
Category: Water Cooler
7 Comments
7 Comments
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Comments
Very nice analysis, indeed.
Thanks Harith! I think my sphinn description is misleading... next time I won't be so copy and paste lazy (he he)
I have to disagree with your conclusions about recessions being a potential boom to the SEO landscape. While your logic about reviewing metrics to make budget choices is sound, there are a whole lot of managers and business owners who just don't understand search, or understand it less than traditional advertising. With this in mind, I think that SEO may be more susceptible to cutbacks in because people in general just don't understand how it works, and the potential value that it delivers. This issue is only amplified if the manager is doing business with someone who isn't an SEO expert.
Now with that said, I also have to say that I agree with your outcome about big agencies getting into search and driving up the price of experienced SEMers. However, I think this is going to happen whether a recession hits or not, although the loss of a couple big accounts could expedite the transition for some agencies.
Great Analysis...let's talk more about it outside of sphinn if you like. It could be a fun conversation.
The entrance of big agencies into this market will not necessarily drive up prices. These agencies will most likely go for the most easily commoditized parts of the market (easily repeatable by lower cost labor) and use their expertise in offshoring to reduce their costs.
The recession will drive search marketing and social media marketing to the forefront of overall marketing discussions for the next few years, but an increase in competition will most likely lead to a decrease in overall prices. As LtDraper stated above KPOs will likely pop up in the industry, and even if they dont the large amount of overseas freelancers will cause a huge gap between high end a low end services. More competition in most markets leads to price wars, and the consumer tends to benefit.
Keep in mind to that this whole thing could swing towrds social media as well. The recession is coming at a time when social media marketing and optimization have become buzz words. As social media slowly challenges search for traffic generating power it to could challenge for budgets. The only thing it is really missing is solid metrics to account for investment.
I think that the increase in competition (from agencies) will impact SEO's who deal with Enterprise Sized clients the most. For these clients I expect that the agencies will want to replace lost income from traditional advertising, with Digital Budgets. I think they will be reticent to drop prices.
For SEO's who deal with SME's I don't know if there will be increased competition. While I see many more SEO's getting into the industry, I wonder if we've only hit the tip of the iceberg in terms of demand. And I have no idea how SME's will react to the recession in terms of SEO budgets.
Enjoyed the analysis - thanks!