Archive for January, 2010

The answer is probably “yes.”  The search marketing business is already incredibly large and growing fast, and because of how lucrative it is, it’s attracting all types of “snake oil” salespeople.  According to a Forrester Research study done in July 2009, the search marketing industry is expected to grow to a $31 billion dollar industry by 2014, with 21% of that total on advertisement spending like Google AdWords.  This most certainly is related to the fact that over 85% of all products purchased started with an online search.

It’s also amazing how such a large industry is still very much in its infancy.  Google launched their first version of a search engine in 1998, so the industry is really only 12 years old; yet what’s fascinating is that what you knew back then almost certainly doesn’t apply now.  For instance, in the early days you used to have to “submit” your site to Google in order to let them know you existed.  Today all of that is done automatically through “crawling.”

The other fascinating thing, at least in the SEO world, is how disparate the expert opinions can get.  One says keyword density is a myth, the other says it’s important.  One says the h1 tag matter the most, the other one says it’s the title tag.  It’s enough to make a skeptic out of anyone.  Who should you believe?  And why do they charge so vastly different for their services?  One SEO consultant will charge $400 per month, and another one won’t take you unless you spend $5,000 per month.  How are you supposed to evaluate the differences between costs and expertise to make sure you get a “bang for your buck?”

Let’s look at a few basics that you should understand from your SEO:

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After catching up on some news this evening, I was appalled to learn how lacking the oversight is on the Government stimulus money that I feel like we were duped into in the first place.  CNN reports how a company in Tennessee was given $16 million of this federal warchest to do something useful, yet did not create one single job.  In fact, the money was used to do some soil remediation in Ohio – not even in Tennessee!  CNN also reports a bunch of money was given to Massachusetts company Aggregate Industries, who happens to be the same company who allegedly provided sub-par concrete to the Big Dig project (the largest civil project in the history of the U.S.) – so after the lies, cover up and lawsuit from the State, a big fat stimulus check arrives in the mail.

More capital needs to be accessed easier for the start-ups and small businesses to dramatically improve the economy.

Where is the funding for the start-ups?

I firmly believe that what will get us out of this economic slump is the start-ups and small businesses in this Country, not bailouts to companies who are “too big to fail” and prove over and over again that they can not manage their money properly.  The problem is that I don’t see any programs devoted to funding some of the small start-upst to develop new products, software or other intellectual property.  Sure, in Texas we have the ETF, or the Emerging Technology Fund, and I’ve even looked pretty closely at that program, but there’s enough red tape in that thing to go around the Equator.  It’s really not an attractive option for smaller start-ups like Pear Analytics.  The SBA program also has it’s limitations and hurdles.    Not too long ago I read in the local newspaper that a cap had been reached on the amount of loans available for small business.  That’s enlightening.  No more money there.  Small start-ups like us can really only turn to friends and family, or angels for cash.  A bank probably won’t give us a line of credit, so they’re useless (even though I thought that’s why they were given bailout money in the first place).

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The following editorial is actually a thesis written by Josh Lavine, a student at Princeton University whose task was to interview a start-up company, preferably in the hi-tech area for an Entrepreneurship class.  It is quite long, but describes how Pear Analytics was started and where we are going, the challenges we face, and more.  I’ve also left out the Appendix due to length, which you may see notated throughout the report.  This is Josh’s final thesis, and frankly I was impressed by how much he learned about our business and industry in the mere 4 or 5 hours he interviewed me.  I also plan to implement several of his suggestions for improvement which he notes at the end of his report.  Josh is personally invited by me to come join our team at Pear any time. Enjoy!

It is December 23, 2009, noontime. I smooth my shirt and try to lick the tomato sauce stain off my sleeve, then open the door to the office of Pear Analytics. What I saw surprised me.

The office, located in San Antonio, TX is quaint, but strangely chic. It is only one big room with no walled-in spaces, except for the two small conference rooms in back. Large neon green and blue balls are rolling around the floor (I would later find out that instead of buying expensive chairs, the team realized they could just sit on cheap, cool colored exercise balls). Ryan Kelly, founder and CEO of Pear Analytics is presently standing (towering, really—he’s must be 6’6”) at one end of the room, watching one of his office mates from BrandStack, the company he shares office space with, play tennis on the Nintendo Wii on an enormous flat-screen TV—probably the most expensive piece of equipment in the room. If Kelly turned his gaze down and to the right, he would see Romy Misra, his senior analyst, writing equations in dry erase marker on a large glass table. She records her calculations on her laptop. Kelly’s other employees—just three web developers—were out for the day. I follow Kelly into one of the back conference rooms. We sit down and start talking.

A Man with Many Interests

It is about 18 months since Kelly founded Pear Analytics, now a Web-based company that helps websites with Search Engine Optimization (SEO), and things are going well. But a decade ago he probably never thought he’d be doing something like this. In 1998, a recent graduate from the University of Massachusetts, Amherst with a BSME in Mechanical Engineering, Kelly got a job in the aerospace industry working for Pratt and Whitney, designing and managing jet engine production for the U.S. Air Force. During his first year there, he developed a new kind of airliner turbine foil, for which he received a propriety design patent in 2002. At Pratt and Whitney, Kelly was frustrated by the non-linear way engines were produced on the floor. He described the production floor as vast and organized by an arbitrary positioning of part manufacturing booths (so to speak). Kelly observed that oftentimes a part or an engine in production would take days to get from one stage of production to the next because the booths were on opposite sides of the room, and transportation required trucks that had to be reserved in advance. As an engineer he had little influence in getting the floor rearranged for smoother production. Wanting to become more involved in management, in 2001 Kelly entered business school at the University of Hartford, where he studied Marketing Management. In 2002, Kelly transferred to the University of Phoenix, where he finished his MBA in 2006. For the last year of his 5 year stint at Pratt and Whitney, he acted as the sales and marketing director of Pratt and Whitney’s $20 million spare part business in San Antonio.

In 2003, Kelly moved from Pratt and Whitney to Blue Clover, a creative design firm in San Antonio, where he served as general manager and partner. At Blue Clover, Kelly managed all business processes and the company’s investments, and oversaw all of the production staff. He also oversaw all financials, budgets, legal contracts, and company proposals, provided key web strategies, SEO and marketing techniques for many of the company’s clients.[1] With Kelly there, Blue Clover became distinguished as an award winning design firm. In 2006 it was honored with 16 Addy awards, including 5 gold for elements of advertising, interactive media, and collateral material; and in February 2008 it was named one of San Antonio’s best places to work.

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Thanks to my friend Steve Patti (@polarityinc) who sent this excellent whitepaper from Marketing Profs this morning entitled “The Naked Truth: Insights from the State of Social Media Marketing” dated January 14, 2010, which you can download at the bottom of this post.  This is a really interesting read if you are wondering what works and what doesn’t in social media.  I know I hear from companies on a daily basis who are scrambling to figure out how to get involved with social media the right way.  The authors of this research did a fairly large survey, and included non-social media marketers to get an understanding of who is vs. is NOT using social media.

Here are a couple of excerpts:

1.  Facebook is the most popular with 48.2% of companies having a corporate profile

2.  Twitter is second most popular with 42.8% of companies maintaining a profile.

3.  Ever wonder what industries are participating the most in social media?

Social Media Participation by Industry

4.  Check out some of the Twitter tactics that worked vs. did not work as well

Twitter Tactics that Work vs. Those That Don't Work

Here are some social media myths that the research indicates:

MYTH:  Social media is “free”.

While the media may be free, the marketer’s time is not.  The average marketer who spends 4-7 hours per day on social media activities is earning over $130,000 per year.

MYTH: Only young people are using social media.

While more young people are consuming social media, but good content is actually produced by older, more experienced social media marketers.

MYTH: It’s a good idea to have your 22-year old intern handle all of your social media activities.

It’s better to spread the work out. Let thought leaders lead thoughts, and customer service serve grumpy customers. (<– love that one!)

You can download the entire paper here. (However, you must visit Steve’s marketing blog since he pays for the Marketing Profs subscription!)