Which predictions for 2007 came true?

This time last year we made 5 predictions for 2007 and so here’s a quick summary of our list and what actually happened (you can read the originals in more detail in our January 2007 Newsletter):

1. A growing emphasis on site conversion: there were some signs that more companies were beginning to focus more on the way that their website was working and converting visitors over the past year. As the average PPC bids levels continued to rise, with figures of 10-30% over the past year – depending on the market – Google and Yahoo both introduced tools to test website ROI (return on investment) rates. However, the search engine market is still becoming increasingly competitive and costly so that more companies should be using their website analytics (including the very detailed, and free, Google Analytics package) to help identify areas where their site may be working well or could still be improved, to make more of every visit to their site and to increase the visit to conversion rates. In addition, an increased focus on competitor activity can also provide clues to help one online business perform better than another.
2. Search marketing becomes a core discipline: digital marketing overall is becoming well and truly established within many business marketing strategies and budgets, with search marketing taking the largest share of spend. Figures over the past year in both the UK and Australia continue to show the rapid growth in this area of marketing and companies need to ensure that they are getting the best from this sector – and that they continue to develop their websites and online marketing plans for the long term. With an ongoing skills shortage in this still young market, the benefits of applying genuine search marketing expertise effectively to any campaign remains the best solution for any business that wants to achieve the best results.
3. Local search gains prominence: the developments made by Google over the past year have been significant, with the introduction of “universal search” results being the most obvious opportunities for local business marketing. Further improvements are still being introduced within the PPC sector and mapping tools are also gaining ground, particularly if mobile search begins to take off. Many localized companies still view search engine marketing as ‘not for them’ and price prohibitive, yet with more and more people using Google and other business search tools to find local products and services, this can still be the most cost-effective form of local marketing there is.
4. The question of click fraud is tackled: this hasn’t been resolved to any great degree although the debate about the definition and methods for tackling click fraud seem to have taken a back seat for the time being. Google does report on “invalid clicks” within the AdWords reporting system and is open about providing credits, yet this probably doesn’t go far enough for some advertisers and any claims require significant management time to follow through to any great success. In the rush by many companies to get their sponsored listings within the search results, click fraud is largely seen as a factor that has to be built into the overall results that will make a campaign a success or not.
5. Social networks become a new marketing challenge: we made no mention of Facebook this time last year, but this site has become the primary media focus within social networking over the past year. The ability for developers to create applications has extended the use of this tool substantially and it could become a significant marketing tool over the next year. However, the recent backlash from users over the invasion of privacy to create advertising applications has placed some control over how Facebook will operate in this market, but we’re likely to see this sector develop still further over the next 12 months with new innovations and opportunities (as well as threats) to companies who wish to use these social networks to promote their products and brands.

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