i-way Consulting

i-way newsletter

July 2004

The Search Engine Revolution

We have all been using Google and other search engines so customers can find our web sites more easily.  Whatever our success in attracting customers this way (and that's another story!), two things stand out:

1. Search engine listings have been (mostly) free: a level playing field for all organisations regardless of size.

2. It's been difficult to use search engines to construct regional or city specific listings ('show me all electricians in Hawthorn').  The tourism industry has overcome this, for example, by building regional directories, and promoting the region as a whole.

This is all about to change in Australia , following a recent 'world first' announcement by Sensis, the Yellow Pages arm of Telstra.

The search engine business model is being radically changed

Sensis has launched a new search engine, www.sensis.com.au, which builds on the strengths (and value) of its Yellow Pages, CitySearch and recently purchased Trading Post directory products.

The search engine works like Google, but can provide location specific searches. 

Every company listed in Yellow Pages is given a free listing, in its category/ies.

This is very good news. 

At the same time, Sensis is introducing a paid advertising model - like Yellow Pages paid ads, but better.  This is called PFP, or Pay For Performance, advertising.

Details of the Sensis PFP scheme are yet to emerge, but suggest two components:

1. Companies will bid for key names like 'electrician', to gain more prominence in listings.

2. Pay Per Click, or PPC, will apply to these listings.  An advertiser will only pay Sensis if the customer clicks on the link to the company's web site.  The click cost is determined by the bid price for the key name used.

This new search engine model may have an impact on your online advertising model.  It may offer you new low cost online advertising opportunities, particularly if you are a regional business.

We recommend that you consider your company's position on PPC advertising.