The question really begs another question – what is your goal for your site?

If you are operating it as a real business where you hope to either supplement your current income or rely on it as your sole source of income – then you need to be prepared to invest in search (it’s often the foundation of your marketing and a consistent source of regular traffic).

You can invest time or money and in most cases, you usually need to invest both.

I think there is someone out there spreading some erroneous information about starting a business online.  There is a lot of the “build it and they will come” mentality – in other words throw up a site and voila insta-business!

While in many ways, it is easier to do business online because you don’t need to set up physical stores and have a lot of the issues you have with brick and mortars, it is by no means a “sure thing” – you still have to work for your success.

Don’t get me wrong, I am not saying you shouldn’t start an online business -  I am just saying if you expect your business to grow and treat you well, then you need to treat it like a serious business.

So, yes, it will be necessary for you to invest both time and money into generating traffic.

So back to the question at hand – how much should you spend on SEO?

You need to crunch some numbers and see how many visitors it takes to get a sale and how much a sale is worth to you to really fine-tune your budget – especially if PPC is part of your plans (so many people waste money on PPC that isn’t converting – spend wisely or it can suck you dry!)

For organic SEO you will find everything from $19.99 mass submission (avoid like the plague, you may as well burn your $19.99) to tens of thousands of dollars per month.

Most small to medium sized businesses spend between $300 – $800 per month, although I’ve also heard people say numbers a little higher, like $500 – $1500 per month is the norm.  So somewhere in that range is what you should expect to pay for quality SEO work.

It always amazes me that people are annoyed they have to pay for SEO.  People will pay for a doctor or a mechanic, or even a web designer but they seem to resent having to pay for SEO.  If you have the time and knowledge, then by all means, don’t pay anyone, do it yourself.  However if you don’t have the time or knowledge, it’s a valid, and important expense and not something you should begrudge.  Driving traffic to your site is the foundation and not the area you want to go cheap.

I’m jussayin…think about your goals and think about what you are prepared to do to get there.

As the effects of the global recession linger, consumers are changing the way they shop, becoming more budget-conscious, eco-aware and cause-oriented, while paying greater attention to what, why and from who they are buying. Arnold Worldwide has named the top ten public figures, across entertainment, business and politics, who are helping to promote the era of “mindful spending.”

Andrew Benett, Global CEO of Arnold Worldwide and Global Chief Strategy Officer of Havas Worldwide, describes the downfall of hyperconsumption and the rise of “the new consumer” in his forthcoming book, Consumed: Rethinking Business in an Era of Mindful Spending (Palgrave Macmillan, July 2010), co-authored by Ann O’Reilly, Content Director of the Euro RSCG Worldwide Knowledge Exchange.

Despite the fact that glitz and abundance are alive and well in mainstream media (think: Bravo’s The Real Housewives and E!’s Keeping Up with the Kardashians), there is a fast-growing set of Americans who reject excess and artificiality in favor of authenticity, substance and interconnectedness. In fact, according to a groundbreaking survey of 5,700 adults in seven countries conducted for Consumed, nearly 80 percent of Americans feel society is becoming too shallow and believe most of us would be better off if we lived more simply.

“For the last two decades, Americans believed bigger was better—from the size of our houses to our cars to the amount of food on our dinner plates. But the economic recession, coupled with other factors like the green movement, is fundamentally changing American attitudes,” said Benett. “Instead of super-sizing, we’re ‘right-sizing’ and re-evaluating what’s important in life. We’re saving more, wasting less, and giving back.”

Benett further states: “Mindful consumers are taking a closer look at what we truly need and adjusting our shopping behaviors accordingly. As part of that, we are embracing brands that uphold these new ideals, brands that provide quality and value in their services and products, but are also environmentally friendly and socially responsible.”

In recognition of the new book Consumed, here is a list of ten public figures who embrace qualities of the mindful consumer, such as a commitment to sustainability efforts, a focus on giving, and a more thoughtful approach to consumption:

Ludacris
Rappers are not always known for their humility, generosity and environmentally conscious attitudes; Ludacris isn’t your average rapper. Through The Ludacris Foundation, he has donated $1.5 million to support youth-oriented, grassroots organizations and devoted more than 5,000 hours of service, all while paying special attention to his hometown of Atlanta. Did we mention that Ludacris owns a hybrid and is installing solar panels on his home?

Suze Orman
While the financial market collapsed, Orman’s stock rose as she convinced people what NOT to buy during the economic recession. She is viewed as a trusted financial expert, helping Americans become fiscally responsible through her television show, eight consecutive New York Times bestsellers, and frequent guest spots on a range of programs from Oprah to The Biggest Loser.

Indra K. Nooyi
As the CEO of PepsiCo, Nooyi wants those of us who indulge in sugary beverages to feel a little better about it. She’s championing “performance with a purpose” within the organization, which is focused on creating more wholesome products and increasing sustainability practices. As part of this effort, the company has launched The Pepsi Refresh Project. The socially driven campaign allows individuals and organizations to post their philanthropic ideas on refresheverything.com, where the general public votes for their favorite initiatives to be funded. To help support the project, which will give away more than $20 million this year, the company passed on airing a Super Bowl ad.

Ellen DeGeneres
Comedienne, actress, author, CoverGirl spokesmodel, American Idol judge, talk-show host, and wife. . . Ellen DeGeneres does it all. Using her large media presence, she exposes audience members to different charities including Feeding America and the American Red Cross. DeGeneres conceals her wealth with ordinary clothes and a gracious attitude, influencing a legion of supporters through her television shows and brand sponsorships.

Taylor Swift
Unlike her flashy counterparts, such as Miley Cyrus and Lady Gaga, there’s something genuine and down-to-earth about Swift that makes her stand out among the tween, teenage and young adult set. With her poised demeanor, saccharine pop-country crossover songs, humanitarian efforts for numerous charities, and penchant for affordable clothing—including her line of Walmart-sold sundresses that start at $14—this young superstar personifies the mindset of a new generation who want to feel good, look good and do good with (age-appropriate) style.

Warren Buffett
The world’s third-wealthiest person, Buffet is famously known for both his mindful spending and philanthropy. America’s foremost investor still owns the modest home bought in 1958, receives a salary of approximately $100,000 and rarely makes extravagant purchases. Most recently, Buffet auctioned off a lunch with himself that sold for $2.63 million, which will support Glide Foundation, a homeless organization based in San Francisco.

Oprah Winfrey
As proven time and again, the mere mention of a product by Oprah will make it a bestseller. Her personal integrity, philanthropic efforts and ability to connect with the masses will help her stay one of America’s favorite trendsetters long after her talk show ends in 2011. Up next: Oprah will start the Oprah Winfrey Network (OWN), further exploring issues surrounding empowerment, spirit, human relationships and giving back.

Stephen F. Quinn
More than three-quarters of Americans shop at Walmart every year, so whether you’re a fan or not, the retailer has influence. As Walmart’s CMO, Quinn’s leadership on sustainability efforts has a huge impact. He helped initiate strict environmental standards including high efficiency store designs, reusable bags, recycling programs and the installation of solar panels. In addition, Walmart is helping shoppers go green by introducing more energy-efficient products; locally grown produce; and the Sustainability Index, an initiative that, in the company’s own words, is “helping to create a more transparent supply chain, driving product innovation and ultimately providing our customers with information they need to assess products’ sustainability.”

Mark Zuckerberg
Zuckerberg makes the list not because he is particularly mindful, but because the platform he created is making savvier shoppers out of all of us. With more than 400 million active users worldwide, Facebook has become an interactive consumer haven. With the simple update of a status feed, users can get product recommendations from the most trusted source: friends and family. Plus, the platform provides a voice to grassroots organizations that want to galvanize people around the world quickly and efficiently. Brands like Coca-Cola, Starbucks and Disney are realizing the platform’s potential by generating huge fan followings, making it a marketer’s paradise. And with Zuckerberg’s influence over Internet privacy policies, he is literally changing the way we shop.

Michelle Obama
With the grace of Jackie and the aspirations of Eleanor, Michelle has captivated Americans. When the First Lady donned J.Crew fashions at public appearances such as The Jay Leno Show, it spiked the retailer’s clothing sales, website traffic and brand awareness. However, it is Obama’s efforts to end childhood obesity with initiatives like “Let’s Move” and the White House vegetable garden that are inspiring a nation. She is influencing (and, in some cases, incentivizing) politicians, business leaders, nonprofits, parents and the rest of us to think about what we consume.

Comments

The survey of 145 interactive marketing professionals snuggles-up nicely with cScape’s research published in December that suggested companies will focus more on customer engagement in 2009.

Highlights from the report authored by Jeremiah Owyang include:

• 53% of interactive marketers expect their budgets for social media marketing to increase as a response to the recession.
• Social media budgets remain miniscule compared to the rest of interactive marketing. Three-quarters of marketers say their social media spend is $100,000 or less over 12 months.
• Social media is not yet a marketing line item. 45-percent of marketers say their social budgets are determined as needed and 23-percent say they scrape together funds from wherever they can find them.

Only 25% of companies are spending more than $100k a year on social media and it’s not yet a line item? Reminds me a lot of search engine marketing circa 1999. If you spend peanuts on social media, you’ll get…peanut butter–not filet mignon–when it comes to seeing results. Something Owyang agrees with:

“If you continue to fund social applications only as experiments, you’re unlikely to be able to do enough to make an impact, or to have a secure source of funding for the future. One way to put these efforts on a firmer footing is to concentrate on objectives and measure progress… rather than just experimenting to see what happens.”

You can purchase “Social Media Playtime Is Over” from Forrester for $749.

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If a recession is on the way to the US economy, shoppers didn’t worry about it too much. From November 1 to December 31 of 2007, people spent 19 percent more than they did for the same period in 2006.

A comScore tally of the shopping season found the biggest uptick in spending came as consumers sought video games and accessories. At a gain of 129 percent from 2006, purchases more than doubled while people desperately sought the underproduced Nintendo Wii, as well as competing products from Sony and Microsoft.

Though business was good for the holidays, it could have been better. "Ultimately, the softness in the growth of online retail sales during the first ten days of November proved difficult to overcome and prevented the season’s growth rate from reaching our forecast of 20 percent," comScore Chairman Gian Fulgoni said in a statement.

"However, the period between Thanksgiving and Christmas – another measure of the strength of the holiday season – experienced a healthier 21-percent growth rate."

December 10th, the so-called Green Monday as eBay dubbed it, proved worth its nickname. Buyers plunked down $881 million, followed by $819 million on Tuesday, December 11th. Thursday, December 6th, was the only other day to surpass the $800 million mark, with $803 million flowing to online retailers that day.

Recent government data found that households spend $524, on average, on cell phone bills in 2006, compared with $542 for residential landline services. People are most likely spending more on their cell phone bills, telecom industry analysts say.

"What we’re finding is there’s a huge move of people giving up their landline service altogether and using cell phones exclusively," Allyn Hall, consumer research director for market research firm In-Stat told the AP.

The growth of wireless networks has made cell phones more convenient, and a variety of services, including text messaging, video and music has made it simple for people to spend money on their cell phone. "Frankly, I’d be shocked if (households) don’t spend more on cell phones at this point," said Andrew Arthur, vice president of market solutions at Mediamark Research & Intelligence.

When corporate cell phone use is included, overall U.S. spending surpassed landline spending a number of years ago, analysts say. There are about 170 million landlines in use around the country, industry officials project there are almost 250 million cell phones.

Eric Rabe, senior vice president for media relations at Verizon Communications, said the company’s wireless revenue has grown 15 to 20 percent annually over the last five years. Its landline business has been stagnant year to year, because more than 90 percent of U.S. households have one.

"As a company that once made the vast, vast majority of its revenue on phone calls, for 10 years we’ve been moving away from that and trying to re-establish ourselves in other businesses because we could see the traditional telephone was a mature business, it was not going to grow and indeed might even shrink," he said.
 

Monday, December 10 reached $881 million in sales (up33 percent versus last year), registering as the heaviest online spending day of the season and the heaviest online spending day on record.

"Despite the strong surge in spending we observed at the beginning of last week, with both Monday and Tuesday easily surpassing $800 million in sales and showing very strong growth rates, the remainder of the week saw more modest spending," said comScore Chairman Gian Fulgoni.

"However, we anticipate that spending at the beginning of this week will again be strong with most free shipping deals available until Tuesday, December 18."

This year’s 18-percent online retail spending growth rate is well below the 26-percent rate at the same time last year. An analysis of online spending by household income indicates that slower growth among lower income households is weighing the overall season-to-date growth. Households earning $100,000 have increased their online spending 28 percent versus a year ago, households making less than $50,000 have increased their spending by just 10 percent.

"The current economic realities appear to be having a negative impact on the growth in consumer spending," added Mr. Fulgoni.

"From the sub-prime housing meltdown to a decline in home values to higher gas prices and an uncertain stock market, many consumers across all income segments are either feeling the pinch this holiday season or are lacking the confidence to spend at the rate they had in the past. Consumers in lower income segments appear to be the most affected, as evidenced by the sluggish growth in their rate of online spending."

"The continued growth of social networking seems assured," says Debra Aho Williamson, eMarketer Senior Analyst and author of the new report, Social Network Marketing: Ad Spending and Usage, "unless teens stop social networking as they become adults."

In 2006, 61 percent of all U.S. teens visited social a networking site on a monthly basis that number will increase to 70 percent this year. By 2011, one-half of all online adults and 84% of online teens in the US will use social networking each month," says Ms. Williamson. "There is little to suggest that this activity will go away."

When it comes to advertising revenues, eMarketer estimates that global online social network ad spending will grow from $1.2 billion in 2007 to $2.2 billion in 2008. Worldwide spending will hit $4 billion in 2011.

In the U.S., spending is projected to rise to $1.6 million in 2008, from $920 million in 2007. "MySpace and Facebook together receive more than 70% of all US social network ad spending," says Ms. Williamson. "And they are hard at work to convince marketers to allot more of their budgets to social network advertising."

"But if social network marketing delivers on its promise of peer recommendations the flow of advertising dollars will turn into a flood," says Ms. Williamson.

The average amount of time shoppers spent researching specific products online increased 16 percent when compared to the time they spent researching specific products in 2006.

"The increase in online product research emphasizes just how important it is for both manufacturers and retailers to provide comprehensive product and brand information to meet the demands of today’s web savvy consumers," said Jed Alpert, Vice President of Marketing for WebCollage.

"Customers are clearly spending more time on retail websites trying to learn everything they can about a product before they purchase it online or in a store."

Along with online shoppers researching specific products on Web sites, they are also visiting retailer’s "shop-by-brand" sections for guided advice on how to choose the right product within a specific brand. Close to 50 percent of holiday traffic went to brand stores on retail Web sites.

"Nearly half of our consumer research traffic goes to the brand store sections of retail websites versus specific products.  This means that manufacturers that do not have a comprehensive and complete brand store are missing out on an opportunity to influence a significant portion of their prospect base," Alpert added.

"Only by understanding retail website traffic patterns and integrating their complete brand story online can manufacturers truly leverage the power of their offline marketing that creates consumer interest in their specific brand."

Online Holiday Spending Tops $18 Billion

Non-travel retail spending online for the period of November 1 through December 7 rose 18 percent compared to the same period in 2006.

Analysis firm comScore also noted that spending on December 6th made it the heaviest online spending day ever.

"It was a terrific kick-start to December, but we expect the upcoming week to be the heaviest online spending week of the holiday season as the procrastinators and late-season deal-seekers come out in earnest," said comScore Chairman Gian Fulgoni.

Those coming out late may follow the example set by searchers through the month of November.

In tech product searches for the month, consumers showed the most interest in the hard to find Nintendo Wii.

Interest in Apple’s iPod media players and Microsoft’s Xbox 360 gaming console followed the Wii. Sony’s PlayStation 2 drew more searches than the newer PlayStation 3, which comScore attributed to bargain hunting by consumers.

"While iPods and iPhones are predictably popular, we’re also seeing that consumers are actively searching for information on GPS products," said Fulgoni. "This is a category that can be expected to grow strongly during the next few years."

All of those items have to get to their destinations somehow, which will keep shipping companies busy through December.

Shipper DHL said they expect a 25 percent hike in their average daily volume compared to the first three quarters of 2007.

It also means putting Santa to work on the forklift. Meeting that demand will require increasing DHL’s daily U.S. truck routes by 25 percent.

The Jolly Old Elf might be a much leaner Santa by the time Christmas Eve arrives.

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