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What Does Chip-Making Demand Tell Us About Search Demand?

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What Does Chip-Making Demand Tell Us About Search Demand?

While so many elements of product demand have fluctuated since the pandemic in 2020, one of the more significant known issues has been mobile chip demand

If you’re unsure of what that means, consider the automobile industry as an example.

Most newer vehicles rely on chip technology. During the pandemic, there has been an unprecedented shortage of chips, leaving consumers waiting months – if not years – for their new vehicle.

Now three years into the pandemic, chip-making demand has taken a sharp turn for the worse – and quickly.

So, what does this sudden change in chip demand have to do with search demand? A lot.

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Leading Chipmakers Release Bleak Forecasts

According to The Financial Times, Qualcomm slashed 25% of its revenue forecasts for the current quarter due to slow customer spending. Specifically, this affects smartphone sales.

Mobile chip makers aren’t the only ones making changes. It’s estimated that sales of personal computer processors will decline 40% year-over-year.

These projections were a stark change from a year ago when stock prices were, at times, sky-high. Demand was there for these technology chips in all sectors: auto, smartphones, virtual reality, etc.

In addition to demand, supply chain issues caused a domino effect of worldwide shortages.

The Supply and Demand Dance

As marketers, you’ve likely taken an Economics 101 class before your career.

The premise of supply and demand, simply put:

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  • “Supply and demand is an economic model of price determination in the marketplace.”

The theory further states that the price of a good is directly affected by its availability (supply) and the buyer’s demand.

At the right price, a manufacturer will produce more of a particular product to maximize profit.

Now, bringing this theory back to the mobile-chip demand decrease. How did this market plummet in such a short time?

In 2020, demand skyrocketed for various industries, such as automobiles. Because the consumer demand was so high, suppliers (brands/manufacturers) capitalized on the market by supplying more of this product. A win-win, right?

When the complexities of economic challenges are factored in, such as supply chain interruptions or a recession, this throws a wrench into the supply/demand curve. 

When the manufacturers couldn’t keep up with the increase in demand, consumers had to wait longer for their products. This is where widespread interruptions can influence a consumer’s demand for the worse. A consumer knows they’d have to wait so long to receive their product and then may decide not to purchase.

The second complexity that affects this trend so suddenly is economic uncertainty. With a highly volatile stock market, mortgage interest rates, job layoffs, and more – the demand for certain products and industries can be affected almost overnight.

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If a consumer’s disposable income is affected by any of the scenarios above, their priorities of consumer goods shift higher to necessities. New cars, phones, or computers can be seen as luxury items to some. So when disposable income declines, demand is likely to follow.

How Can Advertisers Strategize Around Demand (Or Lack Of)?

Returning to a marketer’s standpoint – how can advertisers shift their strategy around changing consumer demand?

#1: Be proactive in analyzing market conditions.

You may think as an advertiser, this shouldn’t apply to your role.

Think again.

Staying current on economic conditions and the fluctuations in demand enables you to be proactive and fluid in your marketing efforts.

#2: When demand falls, capitalize on the decreased competition.

Typically in Search campaigns, the lower the competition, the lower your CPC.

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If you see this trend happening on the keywords you bid on, you have an opportunity for lower click costs.

But before you say, “I can reduce my budget this month” because of it, here’s where a strategy shift can come in.

If you can estimate or project the potential CPC savings in a decreased demand, try running an awareness campaign on another platform.

Awareness campaigns typically have low CPMs since you’re reaching a wider audience. In this scenario, you’re able to see potential savings on Search campaigns to then run an awareness campaign, which can help spark new demand.

#3: Be aggressive when demand is at its peak.

I acknowledge that this is easier said than done.

If your marketing budget is not strained, be prepared to see higher CPCs when demand is high.

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When demand is high, typically, more competitors come out of the woodwork in an attempt to maximize profits.

If CPCs increase, you must ensure that your campaigns are tip-top. 

  • Is your ad copy enticing enough for a user to notice?
  • Are users getting a great user experience on your website or app? If you’ve spent all this money on a click but send them to a poor or slow experience, you’ve wasted that opportunity for a sale.
  • Is your negative keyword strategy aligned with your intentions? Nothing is worse than broad keywords going rogue due to a lack of negative keywords.

Now, if your marketing budget is already limited and you’re dealing with high competition, all hope is not lost.

Try using targeted audiences on your search campaigns to target your most qualified users. 

This makes you more aggressive in your bids to a smaller audience. So while CPCs may still be high, you have a greater chance of a sale if the targeting is narrow.

Even further, you could shift your search strategy to use RLSAs on expensive keywords.

This strategy combines some awareness to build large enough remarketing lists to target them specifically by searching later.

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Summary

Search does not create demand. Search captures demand. As internal and external factors affect brand performance, marketers must be proactive and pivot strategies depending on the situation.

When demand falls, the search volume will likely follow. But that doesn’t mean you’re doomed. Use this as an opportunity to test new campaign types, platforms, or audiences, to maximize your reach and retain as much profit as possible.


Featured Image: Andrey Suslov/Shutterstock



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Google’s Search Engine Market Share Drops As Competitors’ Grows

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Assorted search engine apps including Google, You.com and Bing are seen on an iPhone. Microsoft plans to use ChatGPT in Bing, and You.com has launched an AI chatbot.

According to data from GS Statcounter, Google’s search engine market share has fallen to 86.99%, the lowest point since the firm began tracking search engine share in 2009.

The drop represents a more than 4% decrease from the previous month, marking the largest single-month decline on record.

Screenshot from: https://gs.statcounter.com/search-engine-market-share/, May 2024.

U.S. Market Impact

The decline is most significant in Google’s key market, the United States, where its share of searches across all devices fell by nearly 10%, reaching 77.52%.

1714669058 226 Googles Search Engine Market Share Drops As Competitors GrowsScreenshot from: https://gs.statcounter.com/search-engine-market-share/, May 2024.

Concurrently, competitors Microsoft Bing and Yahoo Search have seen gains. Bing reached a 13% market share in the U.S. and 5.8% globally, its highest since launching in 2009.

Yahoo Search’s worldwide share nearly tripled to 3.06%, a level not seen since July 2015.

1714669058 375 Googles Search Engine Market Share Drops As Competitors GrowsScreenshot from: https://gs.statcounter.com/search-engine-market-share/, May 2024.

Search Quality Concerns

Many industry experts have recently expressed concerns about the declining quality of Google’s search results.

A portion of the SEO community believes that the search giant’s results have worsened following the latest update.

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These concerns have begun to extend to average internet users, who are increasingly voicing complaints about the state of their search results.

Alternative Perspectives

Web analytics platform SimilarWeb provided additional context on X (formerly Twitter), stating that its data for the US for March 2024 suggests Google’s decline may not be as severe as initially reported.

SimilarWeb also highlighted Yahoo’s strong performance, categorizing it as a News and Media platform rather than a direct competitor to Google in the Search Engine category.

Why It Matters

The shifting search engine market trends can impact businesses, marketers, and regular users.

Google has been on top for a long time, shaping how we find things online and how users behave.

However, as its market share drops and other search engines gain popularity, publishers may need to rethink their online strategies and optimize for multiple search platforms besides Google.

Users are becoming vocal about Google’s declining search quality over time. As people start trying alternate search engines, the various platforms must prioritize keeping users satisfied if they want to maintain or grow their market position.

It will be interesting to see how they respond to this boost in market share.

What It Means for SEO Pros

As Google’s competitors gain ground, SEO strategies may need to adapt by accounting for how each search engine’s algorithms and ranking factors work.

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This could involve diversifying SEO efforts across multiple platforms and staying up-to-date on best practices for each one.

The increased focus on high-quality search results emphasizes the need to create valuable, user-focused content that meets the needs of the target audience.

SEO pros must prioritize informative, engaging, trustworthy content that meets search engine algorithms and user expectations.

Remain flexible, adaptable, and proactive to navigate these shifts. Keeping a pulse on industry trends, user behaviors, and competing search engine strategies will be key for successful SEO campaigns.


Featured Image: Tada Images/Shutterstock



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How To Drive Pipeline With A Silo-Free Strategy

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How To Drive Pipeline With A Silo-Free Strategy

When it comes to B2B strategy, a holistic approach is the only approach. 

Revenue organizations usually operate with siloed teams, and often expect a one-size-fits-all solution (usually buying clicks with paid media). 

However, without cohesive brand, infrastructure, and pipeline generation efforts, they’re pretty much doomed to fail. 

It’s just like rowing crew, where each member of the team must synchronize their movements to propel the boat forward – successful B2B marketing requires an integrated strategy. 

So if you’re ready to ditch your disjointed marketing efforts and try a holistic approach, we’ve got you covered.

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Join us on May 15, for an insightful live session with Digital Reach Agency on how to craft a compelling brand and PMF. 

We’ll walk through the critical infrastructure you need, and the reliances and dependences of the core digital marketing disciplines.

Key takeaways from this webinar:

  • Thinking Beyond Traditional Silos: Learn why traditional marketing silos are no longer viable and how they spell doom for modern revenue organizations.
  • How To Identify and Fix Silos: Discover actionable strategies for pinpointing and sealing the gaps in your marketing silos. 
  • The Power of Integration: Uncover the secrets to successfully integrating brand strategy, digital infrastructure, and pipeline generation efforts.

Ben Childs, President and Founder of Digital Reach Agency, and Jordan Gibson, Head of Growth at Digital Reach Agency, will show you how to seamlessly integrate various elements of your marketing strategy for optimal results.

Don’t make the common mistake of using traditional marketing silos – sign up now and learn what it takes to transform your B2B go-to-market.

You’ll also get the opportunity to ask Ben and Jordan your most pressing questions, following the presentation.

And if you can’t make it to the live event, register anyway and we’ll send you a recording shortly after the webinar. 

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Why Big Companies Make Bad Content

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Why Big Companies Make Bad Content

It’s like death and taxes: inevitable. The bigger a company gets, the worse its content marketing becomes.

HubSpot teaching you how to type the shrug emoji or buy bitcoin stock. Salesforce sharing inspiring business quotes. GoDaddy helping you use Bing AI, or Zendesk sharing catchy sales slogans.

Judged by content marketing best practice, these articles are bad.

They won’t resonate with decision-makers. Nobody will buy a HubSpot license after Googling “how to buy bitcoin stock.” It’s the very definition of vanity traffic: tons of visits with no obvious impact on the business.

So why does this happen?

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I did a double-take the first time I discovered this article on the HubSpot blog.

There’s an obvious (but flawed) answer to this question: big companies are inefficient.

As companies grow, they become more complicated, and writing good, relevant content becomes harder. I’ve experienced this firsthand:

  • extra rounds of legal review and stakeholder approval creeping into processes.
  • content watered down to serve an ever-more generic “brand voice”.
  • growing misalignment between search and content teams.
  • a lack of content leadership within the company as early employees leave.
Why Big Companies Make Bad ContentWhy Big Companies Make Bad Content
As companies grow, content workflows can get kinda… complicated.

Similarly, funded companies have to grow, even when they’re already huge. Content has to feed the machine, continually increasing traffic… even if that traffic never contributes to the bottom line.

There’s an element of truth here, but I’ve come to think that both these arguments are naive, and certainly not the whole story.

It is wrong to assume that the same people that grew the company suddenly forgot everything they once knew about content, and wrong to assume that companies willfully target useless keywords just to game their OKRs.

Instead, let’s assume that this strategy is deliberate, and not oversight. I think bad content—and the vanity traffic it generates—is actually good for business.

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There are benefits to driving tons of traffic, even if that traffic never directly converts. Or put in meme format:

Why Big Companies Make Bad ContentWhy Big Companies Make Bad Content

Programmatic SEO is a good example. Why does Dialpad create landing pages for local phone numbers?

1714584366 91 Why Big Companies Make Bad Content1714584366 91 Why Big Companies Make Bad Content

Why does Wise target exchange rate keywords?

1714584366 253 Why Big Companies Make Bad Content1714584366 253 Why Big Companies Make Bad Content

Why do we have a list of most popular websites pages?

1714584367 988 Why Big Companies Make Bad Content1714584367 988 Why Big Companies Make Bad Content

As this Twitter user points out, these articles will never convert…

…but they don’t need to.

Every published URL and targeted keyword is a new doorway from the backwaters of the internet into your website. It’s a chance to acquire backlinks that wouldn’t otherwise exist, and an opportunity to get your brand in front of thousands of new, otherwise unfamiliar people.

These benefits might not directly translate into revenue, but over time, in aggregate, they can have a huge indirect impact on revenue. They can:

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  • Strengthen domain authority and the search performance of every other page on the website.
  • Boost brand awareness, and encourage serendipitous interactions that land your brand in front of the right person at the right time.
  • Deny your competitors traffic and dilute their share of voice.

These small benefits become more worthwhile when multiplied across many hundreds or thousands of pages. If you can minimize the cost of the content, there is relatively little downside.

What about topical authority?

“But what about topical authority?!” I hear you cry. “If you stray too far from your area of expertise, won’t rankings suffer for it?”

I reply simply with this screenshot of Forbes’ “health” subfolder, generating almost 4 million estimated monthly organic pageviews:

1714584367 695 Why Big Companies Make Bad Content1714584367 695 Why Big Companies Make Bad Content

And big companies can minimize cost. For large, established brands, the marginal cost of content creation is relatively low.

Many companies scale their output through networks of freelancer writers, avoiding the cost of fully loaded employees. They have established, efficient processes for research, briefing, editorial review, publication and maintenance. The cost of an additional “unit” of content—or ten, or a hundred—is not that great, especially relative to other marketing channels.

There is also relatively little opportunity cost to consider: the fact that energy spent on “vanity” traffic could be better spent elsewhere, on more business-relevant topics.

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In reality, many of the companies engaging in this strategy have already plucked the low-hanging fruit and written almost every product-relevant topic. There are a finite number of high traffic, high relevance topics; blog consistently for a decade and you too will reach these limits.

On top of that, the HubSpots and Salesforces of the world have very established, very efficient sales processes. Content gating, lead capture and scoring, and retargeting allow them to put very small conversion rates to relatively good use.

1714584367 376 Why Big Companies Make Bad Content1714584367 376 Why Big Companies Make Bad Content

Even HubSpot’s article on Bitcoin stock has its own relevant call-to-action—and for HubSpot, building a database of aspiring investors is more valuable than it sounds, because…

The bigger a company grows, the bigger its audience needs to be to continue sustaining that growth rate.

Companies generally expand their total addressable market (TAM) as they grow, like HubSpot broadening from marketing to sales and customer success, launching new product lines for new—much bigger—audiences. This means the target audience for their content marketing grows alongside.

As Peep Laja put its:

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But for the biggest companies, this principle is taken to an extreme. When a company gears up to IPO, its target audience expands to… pretty much everyone.

This was something Janessa Lantz (ex-HubSpot and dbt Labs) helped me understand: the target audience for a post-IPO company is not just end users, but institutional investors, market analysts, journalists, even regular Jane investors.

These are people who can influence the company’s worth in ways beyond simply buying a subscription: they can invest or encourage others to invest and dramatically influence the share price. These people are influenced by billboards, OOH advertising and, you guessed it, seemingly “bad” content showing up whenever they Google something.

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You can think of this as a second, additional marketing funnel for post-IPO companies:

Illustration: When companies IPO, the traditional marketing funnel is accompanied by a second funnel. Website visitors contribute value through stock appreciation, not just revenue.Illustration: When companies IPO, the traditional marketing funnel is accompanied by a second funnel. Website visitors contribute value through stock appreciation, not just revenue.

These visitors might not purchase a software subscription when they see your article in the SERP, but they will notice your brand, and maybe listen more attentively the next time your stock ticker appears on the news.

They won’t become power users, but they might download your eBook and add an extra unit to the email subscribers reported in your S1.

They might not contribute revenue now, but they will in the future: in the form of stock appreciation, or becoming the target audience for a future product line.

Vanity traffic does create value, but in a form most content marketers are not used to measuring.

If any of these benefits apply, then it makes sense to acquire them for your company—but also to deny them to your competitors.

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SEO is an arms race: there are a finite number of keywords and topics, and leaving a rival to claim hundreds, even thousands of SERPs uncontested could very quickly create a headache for your company.

SEO can quickly create a moat of backlinks and brand awareness that can be virtually impossible to challenge; left unchecked, the gap between your company and your rival can accelerate at an accelerating pace.

Pumping out “bad” content and chasing vanity traffic is a chance to deny your rivals unchallenged share of voice, and make sure your brand always has a seat at the table.

Final thoughts

These types of articles are miscategorized—instead of thinking of them as bad content, it’s better to think of them as cheap digital billboards with surprisingly great attribution.

Big companies chasing “vanity traffic” isn’t an accident or oversight—there are good reasons to invest energy into content that will never convert. There is benefit, just not in the format most content marketers are used to.

This is not an argument to suggest that every company should invest in hyper-broad, high-traffic keywords. But if you’ve been blogging for a decade, or you’re gearing up for an IPO, then “bad content” and the vanity traffic it creates might not be so bad.

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