Oil Prices Drive Stocks to Bear Market

U.S. stocks fell last week, giving the Dow Jones industrial average a 20 percent bear-market drop from October's all-time high as record oil prices threatened global economic growth.

The Standard & Poor's 500-stock index lost 1.3 percent to 1262.90 for a fifth-straight weekly retreat. The index dropped to 1261.52 on July 2, down 19.4 percent from Oct. 9 to its lowest since July 2006. The Dow slipped 0.5 percent to 11,288.54. The MSCI World Index of 23 developed markets has fallen 18.4 percent from its October peak.

"The biggest losers are names with international exposure," said Mark Freeman, a Dallas-based money manager at Westwood Holdings Group.

Monsanto and Nucor led raw-material producers in the S&P 500 to their steepest drop since January. General Motors tumbled to its lowest level since 1954 after Merrill Lynch said the largest U.S. automaker might face bankruptcy. Lehman Brothers slumped to an eight-year low on speculation that credit losses would force it to merge with a bigger securities firm.

This is the Dow's 12th bear market since 1962 and first since 2002, according to research firm Birinyi Associates. Prior declines averaged 29 percent and lasted 322 days, Birinyi data show. The biggest decline was a 45 percent drop over 694 days starting in January 1973.

Caterpillar contributed most to the Dow's weekly drop, followed by Boeing and Alcoa. Before U.S. stocks started falling on May 19, Alcoa had the top gain in the Dow for 2008. Caterpillar was fourth.

Alcoa is scheduled to report second-quarter results Tuesday, becoming the first Dow company to do so. General Electric, also in the Dow, reports Friday.

Crude oil, which doubled in the past year, increased to a record $145.85 a barrel in New York on Wednesday. Its ascent complicates the Federal Reserve's efforts to keep the economy out of recession during bank losses stemming from the collapse of the subprime mortgage market, RBC Capital Markets strategist Myles Zyblock said in a report last week.

Yields on Treasurys fell as traders pared bets that the Fed will raise interest rates after lowering them seven times since September. The two-year note's yield declined to 2.53 percent from 2.63 percent on June 27.

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Natural Search vs. Paid Search: SEO Wins

Most smaller businesses know by now that search engine optimization is an effective way to get their sites noticed by the almighty search engines. But a recent survey indicates that SEO is the best way to generate online leads. Is your site optimized for search?

Paul Bruemmer writes on SearchEngineLand about a recent study done in the UK by eConsultancy on online marketing.

The study demonstrates that "natural search is the best tactic for generating online leads, concluding it is greatly underused despite the fact that it outperforms nearly all other types of online marketing."

The stats:

• Natural search (79%) is the most frequently used online marketing tactic for lead generation, followed by email marketing in-house lists (75%) and paid search (71%).
• Over half (52%) of company respondents said natural search was "very effective." Just under half (48%) said paid search was very effective.

Bruemmer writes: " While online lead generation is becoming more important for many businesses, only a little over half of the company respondents in this survey felt their company wasn't exploiting this type of marketing as effectively as it could be, illustrating that online lead generation delivers results but could be utilized better."

Bruemmer notes that according to the report, a larger proportion of online lead generation budgets go to paid search advertising even though "natural search is perceived as providing the best value for the money. Companies haven't invested in natural search over and above other internet marketing tactics because it requires more effort, but don't make that mistake in your search marketing efforts."

Bruemmer addresses in-house search marketing managers in his emphasis on "taking advantage of all search marketing tactics," but for many smaller businesses, their marketing managers are wearing many hats or in some cases don't exist. SEO is crucial to a Web site's success and eConsultancy's survey validates the point but is it worth hiring an SEO consultant for?

In the course of profiling many small and mid size businesses, it is clear that SEO is becoming increasingly recognized as a necessary part of an online strategy. But it seems that there is no universal approach to how to implement an effective SEO strategy: Some smaller businesses are outsourcing to their Web site developers, some to SEO consultants, and some are trying to learn the art of SEO on their own. Which practice is best of course depends upon the nature of the business, it's size, and the ability of those involved to implement effective SEO strategies.

What are you doing in your smaller business? Are you your own SEO consultant or are you outsourcing to an SEO expert? Why or why not? Please let us know in the comments.

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Make the most of blogs for SEO

Companies should focus on a recent tip given by Google engineer Matt Cutts to USA Today over the role that blogs can play in effective search engine optimisation.

This is according to Sage Lewis of Search Engine Watch, who said that there a number of ways in which businesses can capitalise on the blogging phenomenon to improve the image of their firms.

He advised companies to host their blogs under the same domain name as their main corporate websites to avoid problems should the business need to switch to new blogging tools.

Getting involved in commenting by encouraging responses to their blogs and posting on others can also do wonders for a companys' reputation, Mr Lewis said.

"Comments give you more content on your site that you didn't have to create yourself," he remarked.

"Plus, you position yourself as a company that is dedicated to listening to its customers. You also get feedback in ways that were never before possible."

Global business spending on Web 2.0 platforms such as blogs may increase to $4.6 billion (£2.3 billion) in the next five years, according to Forrester Research.

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SEO Services Company Unveils New Internet Marketing Internship Program

Dallas based SEO Services company has launched a new initiative to promote search engine marketing in colleges and universities. The internships will be available to several academic fields including but not limited to journalism, web development, business management, graphic design and to IT majors.

Dallas, TX, July 03, 2008 --(PR.com)-- The primary focus of SEO 1 Services internship program is to work closely with the academic community, from community colleges, universities and students. This is a great opportunity for students to get front line exposure to SEO services and search engine marketing and apply theories learned to real work experience. College students also get an occasion to evaluate their level of interest in the field of search engine marketing, as it is chronically under represented in most US based curricula.

The SEO services company’s approach to making the internship a great success includes giving interns a chance to work in different search engine optimization projects that relate to their professional field, constant communication with the mentor and providing them with feedbacks, inputs and helpful advice. The search engine marketing interns are also given the opportunity to network with the most seasoned SEO professionals in the industry and showcase their knowledge and abilities.

Lack of internet marketing internships is due to a fragmented industry that is still relatively new and to barriers of entry in a highly specialized industry. This can be an invaluable opportunity for search engine marketing incumbents to set foot in the fast paced internet marketing world and acquired the elusive expertise.

SEO 1 Services offers a great emphasis on helping marketing students get in-depth knowledge about search engine optimization and its different forms like: Viral video marketing, copywriting, link building, blogging, and other marketing efforts as well as basic best practices in the industry. The search engine marketing internship also helps students gain a better understanding of the different internet marketing and search engine marketing strategies.
The length of the SEO internship may vary according to the availability of the intern and the company with a maximum duration of 6 months.The interactive internship programs can be conducted remotely with the mentor and may lead to possible employment as an entry level SEO position though not guaranteed. Applicable letter of recommendation and/or certificate of completion will be delivered upon achievement of the internship.

Search Engine Marketing Internship candidates must submit their resumes through the internship section of the corporate web site.

About SEO 1 Services:
SEO 1 Services has been leading the industry for 5 years. They deliver successful strategies that take in consideration all aspects of your firms' business goals. The team of SEO experts is made up out of web designers, business consultants, as well as programmers who are all Certified SEO Specialists.

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Google's Flash indexing - good or bad for SEO?

Flash sites can be a nightmare from a user experience perspective, so we were surprised by Google's decision this week to begin to indexing content from Flash files (SWF).

One major argument against the use of Flash has been that the major search engines have been unable to effectively index the content contained within these files, so websites using this software have been losing out in the search rankings.

But the main arguments are that Flash sites are often inaccessible and their architects often try to reinvent the wheel, which leads to all manner of user experience nightmares.

I talked to iCrossing's head of natural search Nilhan Jayasinghe to find out more about the development with Google, and why - like us - he believes that using Flash is still a bad idea from an SEO perspective...

----------------------------

Why has Google decided to index Flash content?

Google wants to index as much content as possible, and the problem has been that it hasn't been good at reading SWF files. If Flash files don't have the HTML tags that 'normal' websites have, Google cannot compare those elements.

----------------------------

Will sites using this software now begin to rank higher than non-Flash sites?

The only time you are likely to see this is if a Flash based website has a ranking based on a high number of incoming links. Car manufacturers, including BMW, tend to use a lot of Flash and these sites rank well because they are popular brands.

Google looks at a number of factors, including deep links, textual navigation and internal linking structure so unless it discards these parts of its algorithm then Flash sites will always struggle to rank better than 'normal' websites.

----------------------------

Will this be a green light for web developers to use more Flash?

My first concern is that a lot of creative agencies are now going to use this to persuade clients to build expensive Flash websites. There are alternatives which can do most of what Flash does, but remain indexable, such as Silverlight.

----------------------------

Is this a bad from a user experience perspective?

You may find a Flash site that matches your search term on Google, but unless the file is split into unique URL sections, then clicking on the result will just take you to the beginning of the file, not the part that matches your query.

Mobile users accessing the internet from their phones cannot access Flash websites, so companies may be missing out on a growing mobile audience.

----------------------------

What would you recommend to clients using Flash on their websites?

We have a large web development arm in the US, and we use Flash very sparingly, using it to present rich media content, and making sure that the majority of the site is in HTML.

For websites that already have Flash content, this is good news, as they will be ranking better than before, but I would not recommend it for a brand new site. If Flash is used well, it shouldn't have any text in it.

----------------------------

Greenlight CEO Warren Cowan has a similar take on the issue:

First things first, this isn’t entirely new; Google has been able to access Flash files in a limited capacity for several years, as has Yahoo. Having said that this is a clear step up for Google and it will undoubtedly impact on what we do in the future.

Don’t expect Flash sites to start dominating natural search rankings anytime soon. Being able to access content isn’t the be all and end all of SEO. Among other things we’re also concerned with what’s being accessed and what isn’t, and how that content is structured, both in isolation and within the context of the site as a whole.

For example, one of the worst things you can do to a site is built it entirely on a single URL, a trap that full Flash sites fall into all too often. This eradicates any semblance of structure and makes it impossible to link to specific content within the site.

The fear here is that Google’s announcement will give the green light to Flash designers who, knowing no better, will now see – and probably advertise - their work as “search engine friendly” when in all likelihood it’s anything but.

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Lead generation through SEO

More than half of companies believe that natural search is a "very effective" internet marketing method, new research has shown.

The research by Econsultancy also shows that companies are relying on natural search for the main bulk of their lead generation for sales and marketing.

This underlines the importance of search engine optimisation (SEO) to the modern businesses keen to break into the online market.

However, success with organic search marketing through SEO demands that businesses have a good understanding of what it entails, says Paul Bruemmer on Search Engine Land.

He wrote: "To truly understand the role of search marketing, your in-house team must be knowledgeable in a wide spectrum of search services."

Mr Bruemmer also added that not enough companies are making use of SEO as a marketing tool, which he believes is demonstrably more cost-effective than other methods.

Google's own Matt Cutts recently advised businesses to begin introducing blogs onto their websites to help boost SEO.

Is blogging becoming an SEO fundamental?

Business Feet deliver targeted results through internet marketing and SEO web design

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