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Evaluating Paid Link Web Advertising

Spring/Summer, 2003

Just a few years ago, sales of new internet domain registrations peaked at about 60,000 new domains registered per day. Hundreds of web sites on every imaginable topic were appearing, and everybody was linking to everybody else. Providing links to other sites was seen as a service to web visitors, coupled with the potential to reap the benefits of the network effect. 

Plus, it was cheap. Even free.

Since then, the realities of the time involved in evaluating sites worthy of a link, maintaining those links, ongoing site expenses and the less than impressive financial rewards of web banner ads has driven many web directories, portals and other sites to begin charging a fee for linking to another site. In the heyday of new site creation, your site may have been linked, with or without your knowledge. You've now received an email saying that if you don't pay up, your site will be dropped from their list. What should you do?

This topic provides tips to help you evaluate paying for a link on web directories and portals, as well as briefly discuss the concept of link exchanging. By asking a few simple questions, you can easily evaluate whether that fee is a useful and valid promotion expense for your business or organization.

Web Portals
A web portal, some times referred to as a gateway, is a web site designed to present an overall entry point to the entire web, or as a comprehensive starting point to a particular topic on the web. A portal usually includes content such as news, weather, sports, and sometimes includes a search engine, email access or chat. Portals are usually designed and organized for a particular type of user audience. This audience can be as broad as general consumers, or as narrow as marketing professionals in Wisconsin. 

For example, Yahoo and AOL are national consumer-oriented portals, each incorporating a search engine into their offering. Yahoo also offers consumer portals in Europe, South America and Asia, as well as some larger U.S. cities. Niche or specialized portals can focus on a particular topic, such as real estate at Realtor.com, or women's interests at IVillage. Portals can also be targeted to professionals of a particular discipline such as Creative Pro for design and marketing professionals, to those dealing with common health issues such as The Cancer Survivor's Network, or customers of a particular internet provider, such as AT&T Worldnet service.

Web Directories
Web directories are categorically organized lists and links to web sites, which have been developed by human editors, as opposed to the automated lists and links developed by search engines. Web directories can be focused on lists of sites and links for the entire web, or on a particular topic. Some search engines use a format similar to a web directory as an organizing principle for their information. A Web directory may be found anywhere, including magazine sites, portals, trade, business and professional web sites. Prior to incorporating its portal features, Yahoo was considered the premiere Web directory. The Open Directory Project and Looksmart are examples of web directories that operate solely as an overall directory of web sites.

Link Exchange Programs
Have you ever received an email from someone claiming to have a web site that is complimentary or similar to your web site, asking that you link to their site in return for their link to your site from theirs? If so, you've been invited to participate in a link exchange program.

Link exchange programs, in theory, are intended to enhance search engine optimization, because many web search engines gauge the quality and quantity of sites that link to your site as part of their ranking methodology. More links to your site indicate a higher level of popularity for your site. At least that's the pitch you'll hear from link farmers. 

Unfortunately, most search engines using this methodology also have methods to determine credible links versus these gimmick links, so most link exchange programs have a negative image in the mind of professional marketers. 

If you choose to exchange links with sites, select those sites you feel have value to your web site audience, or with those sites which may actually bring you traffic or customers, regardless of how the link may (or may not, most likely) impact your search engine rankings. Keep in mind that any site that links to you creates a relationship in the user's mind between your site and the linking site. If anything about the linking site may have a negative impact on your image or site content, it is wiser to forego a link from that site.

Evaluate
So what do you do if you receive a notice that a web portal or directory in which you were originally linked for free is now planning on charging for inclusion or your link being dropped from their site? Evaluating paid links or inclusion is just like evaluating paid advertising. Asking a few simple questions will help you make this decision easily.

What is the cost?
Usually, the cost will be either a one-time, or an annual fee. There are no set fees, but usually linking charges range from $25.00 to $300.00. Regardless of the cost structure, ask the following questions while making your decision.

What is the site's traffic?
All too often, obtaining quantifiable visitor statistics is something you will have to ask about. A good analogy is buying a newspaper or magazine ad - would you even consider it if the publication did not provide circulation information? If the site owner cannot, or will not provide visitor statistics, losing your link on their site will likely have minimal effect on your web marketing efforts.

Is this a site your prospect clients/customers use, or sponsored by a group or organization frequented by your prospect clients/customers?
In addition to the traffic a link on another site may provide, you may be realizing some intangible benefits such as credibility, visibility or public relations value. For example, if many of your competitors are featured on the site, the absence of your business or organization may inadvertently carry a negative message to prospects. Alternately, if the linking site is well respected in your target market, that favorable opinion automatically extends to your business when it is featured on that site. Take these unobservable, but important benefits into consideration.

Is this site geographically applicable to your business?
Web portals and directories are not limited to the internationally known destinations like Yahoo or iVillage. If your business or organization serves a specific geographic target, a local directory or portal can be a very useful promotion tool. While Yahoo may be visited by over 50% of all web users nationwide, only a very small portion of that traffic is even applicable to your business. In comparison, a local site may receive relatively low amounts of traffic, but all of that traffic represents a potential client or customer to you.

Do your site traffic reports indicate referrals from the site?
Most web site traffic reports indicate referring sites. A referring site is the site a web user came from to get to your site. Check your site traffic logs to see where your visitors are coming from. If the linking site is a steady source of traffic to your site, it indicates that your link is reaching your targeted audience and may be a valuable prospecting source.

Has the site brought you prospects or new business?
Review your web traffic reports, or your top entry pages to help determine how people are coming to your site. You can also track your web-generated prospect inquiries by asking "how did you hear about us?' on your web response forms. This can help you track which forms of promotion are generating new visitors to your site. When a link on another site brings you even a single new customer, that link is probably worth the fee.

Following these easy tips and suggestions will help you target your web advertising dollar to the sites that bring you traffic or have a positive impact on your image. There is no mystery to using the web effectively for promotion. In most cases, creativity and a little common sense go a long way.

Resources
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