If You Build, Buy, or Partner, Will They Come? Strategies Every Agency Needs to Consider to Grow an SEM Practice
By Sage Peterson
December 2003
Congratulations Mr. Big Agency! You've secured a gigantic PPC search advertising account from a leading manufacturer. They spend six
figures a month on pay-per-click search advertising. Problem is, they expect you to integrate natural search engine optimization
(including paid inclusion) into their overall search engine marketing mix. Now what?
You have four options: 1) Build, 2) Buy, 3) Partner or, 4) Panic and cry.
You're managing PPC search advertising with an off-the-shelf bid management tool, so you're doing SEM, right?
No - you're not doing SEM; you're doing PPC-only. In some ways, you are doing your client a disservice by not having a complete strategy
to maximize their SEM campaigns.
In my day-to-day interactions with agencies, I hear the following comments from my agency counterparts:
1) PPC is an easy way to gain SEM market position - but it's not as easy as it seems. It's time consuming and the margins stink.
2) There's no internal buy-in for having natural search engine optimization in-house.
3) SEM campaigns don't seem like rocket science, but we've failed at it in the past, and it was embarrassing - we lost business.
4) The focus/commitment to do SEM right in-house is lacking.
The question you need to worry about is this, "What happens if we don't get it right?"
What happens if you "get the job done," but compared to the rest of your service deliverables, the client begins to notice that you were in
over your head?
Bingo--you're dead.
The result: your competitor takes that multi-million dollar account away from you.
Here are some thoughts on how to avoid that scenario. Start by considering whether to build, buy, or partner your way to something your
competitors don't offer -- a full-service SEM practice.
Build
Building an in-house capability to serve your clients can be a daunting task. Many first-rate agencies employ one to five in-house
"SEM practitioners" proficient enough to keep several SEM campaigns moving, but results are lackluster.
Agencies haven't built the tools necessary to do SEM right, staff turnover and promotions mean expertise is not retained. There's a reason
why SEM firms only do SEM - it's hard. It requires a single-minded focus and investment in custom tools to deliver results consistently.
We have yet to see an agency's in-house SEM team gain momentum or success.
Buy
An option available to many agencies is acquisition. There have been several acquisitions of SEM players by agencies. Some
acquisitions have been poorly integrated, or put on the "shelf" for lack of strategic direction. The best firms are still out there, but
it's an expensive option - viable, but expensive. This option will depend on your commitment and long-term view on search engine
marketing.
Partner
Many traditional advertising agencies choose to partner with an established search marketing firm. By aligning yourself
with a reputable SEM firm, you get the immediate expertise, proven methodologies, and customized reporting to improve your clients' ROI.
The best way to identify potential SEM partners is by reviewing"The Buyer's Guide to Search Engine Marketing Firms," published by
MarketingSherpa (marketingsherpa.com).
There's no one SEM solution right for every agency. Inaction is not an option - your clients want search marketing, and you will look bad
if you fail them. It's time to think strategically about whether to build, buy or partner.
