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When people hear about online marketing, they often think of two of the more popular methods that a company can use to enhance its visibility on the Web: organic search engine optimization and pay-per-click advertising. In an ideal world, you would use both strategically to maximize your site's profile. However, budgetary constraints often make this impossible, and trying to do both on a limited budget or with minimal resources can result in neither campaign produci

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ng ideal results. In this case, it's usually better to focus on one or the other. But which is best for you?

Organic Search Engine Optimization

Organic search engine optimization campaigns offer several distinct advantages over pay-per-click advertising campaigns, as many recent studies have shown. What follows is a brief listing of some of the findings.

Propensity to Click
Study after study indicates people are less likely to click on

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

paid search ads rather than on results from organic search engine optimization. For example, one study found that search users are up to six times more likely to click on the first few organic results than they are to choose any of the paid results (1), while an eye tracking study (2) showed that 50 percent of users begin their search by scanning the top organic results. Other studies have shown that only 30 percent of search engine users click on paid listings, lea

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ing an overwhelming 70 percent who are clicking the organic listings (3). And a 2003 study found that 85 percent of searchers report clicking on paid links in less than 40 percent of all of their searches, and 78 percent of all respondents claim that they found the information they we searching for through sponsored links just 40 percent of the time (4).

Trust
Studies are beginning to indicate that the trust level for organic results is much higher tha

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

that of paid results, and that paid results are looked upon as a nuisance by some searchers. One study found that only 14 percent of searchers trust paid listings, and 29 percent report being "annoyed" by them (5). Another study found that 66 percent of customers distrust paid ads(6). Clearly, it's not generally a good idea to upset potential customers before they even click on your link.

Value of Visitors
Organic search engine results tend to be seen

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

s non-biased, and they therefore are able to provide visitors that are more valuable. The overall conversion rate, or the rate at which searchers take a desired action on a site, is 17 percent higher for unpaid search results than the rate for paid (4.2% vs. 3.6%) (7). Trends also have shown that more of the sales that result from search engines originated in organic search listings (8).

Visitors Becoming More Aware of Pay-Per-Click as Advertising
As m

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

re and more people turn to the Internet for research and information, more searchers are becoming aware of paid results as a marketing tool. One study showed that not only are 38 percent of searchers aware of the distinction between paid and unpaid results, 54 percent are aware of the distinction on Google, which is widely recognized as the most popular search engine (9).

Pay-Per-Click Costs Rising
Meanwhile, pay-per-click costs are rising steadily. Be

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

ween October 2004 and December 2005, average keyword prices rose from around $25 to just under $55 (10). And the cost of keywords can increase by as much as 100 percent during the holiday season (11). These costs aren't going unnoticed either; one study of problems experienced by U.S. companies found that 57 percent of respondents felt that their desired keywords were "too expensive," while 51 percent expressed concern that they are overpaying for certain keywords

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

12). On the other hand, when you outsource to an organic search engine optimization firm, your costs will likely remain more stable than the prices for pay-per-click advertising.

Long Term Results
While a pay-per-click campaign may produce results more quickly than an organic search engine optimization campaign, organic search engine optimization campaigns can give you results that last. When the budget runs out for a pay-per-click campaign, or when you

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

company decides that the pay-per-click campaign should be terminated, the results end as well. With organic search engine optimization, the optimized site content and other changes made to your site can have an impact on your search results until the next change in a search engine's algorithm, or possibly even beyond.

Relevance
Users also have rated organic search engine results as more relevant than paid results. On Google, 72.3 percent felt that orga

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ic results were more relevant, while only 27.7 percent rated paid results as more relevant. Yahoo offered similar results, with 60.8 calling organic results relevant compared to only 39.2 percent for paid (13).

Pay-Per-Click

While the above statistics may make organic search engine optimization seem the clear choice in all cases, in certain situations it actually can make more sense to do pay-per-click advertising. For those looking for fast results

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

on a small budget, a pay-per-click campaign may be the answer.

Results
As previously stated, the results from pay-per-click advertising are immediate. On the other hand, an organic search engine optimization campaign may take up to three months or more for results to be apparent. In this case, pay-per-click is advantageous for those who are looking to promote an initiative that will go live in a short amount of time, or whose business is seasonal in na

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ure and who only do promotion during certain months of the year.

Budget
Small businesses with extremely tight budgets may find that pay-per-click is a better investment than organic search engine optimization because a pay-per-click campaign will almost always cost less--good search engine optimization companies simply do not work for $100 per month. By limiting a campaign's keyphrases to highly specific terms relevant to a company's business, there wil

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

not be a large amount of traffic generated, but the traffic that is generated will be specific to the desired result. Plus, choosing such specific phrases can make them less expensive on a per click basis. Moreover, in niche markets with a high average dollar sale, where there's not a great amount of search activity because the prospect pool is limited, it may not make sense to engage a quality organic search engine optimization firm at several thousand dollars per

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

month when you can instead buy varying niche-specific keyphrases and generate traffic in that way.

Easier to Handle In-House
Non-complicated pay-per-click campaigns can be handled much more easily in-house than an organic search engine optimization campaign. Such campaigns generally involve business to business and high-end, service oriented companies, not those geared toward a large consumer base. Since organic search engine optimization requires a s

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

eep learning curve and since there are so many questionable tactics that can put a site at risk of penalization (the tactics that neophytes to search engine optimization are likely to use), it may make more sense to run a pay-per-click campaign. Since you are dealing directly with the engine, i.e., Yahoo Search Marketing and Google AdWords, you don't need to pay a middleman, and these sites offer helpful tutorials on how to use pay-per-click marketing. Perhaps most

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

importantly, the concept of pay-per-click is much easier to grasp and understand at the outset.

No Contracts
Most organic search engine optimization campaigns require a contract of a certain length because SEO companies know that meaningful results will rarely happen overnight. When dealing with an in-house pay-per-click campaign, obviously a contract is not an issue. But in general, even when you are dealing with an agency, you will not tend to need to

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

sign a contract because the agency instead makes money on a percentage of the spend, although there may be a setup fee. Without a contract, you are free to reallocate marketing dollars elsewhere if you discover that the pay-per-click campaign is not providing the desired results.

Conclusion

Clearly, organic search engine optimization has some distinct advantages over pay-per-click advertising. However, there are undoubtedly certain situations and sc

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

narios where pay-per-click advertising makes more sense fiscally and strategically. With a high enough budget, you would be able to have an effective organic search engine optimization campaign running in tandem with an effective pay-per-click campaign. But if you have to choose one, look into your unique situation before you decide.

Sources

Oneupweb study
Enquiro, July 2005
Are Corporate Web Sites Optimized for SEO? by Paul Bru

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

mmer, Search Engine Guide, August 2005
WebAdvantage.net 2003 Survey
eMarketer, April 2003
eMarketer 2003
Marketing Sherpa, August 2005
Are Corporate Web Sites Optimized for SEO? by Paul Bruemmer, Search Engine Guide, August 2005
Pew Internet and American Life Project, 2005
Performics, 2005
Ibid
Jupiter Media, June 2003

iProspect, Survey Sampling International, WebSurveyor, and Stratagem Research, April 2004

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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