Any business that does digital marketing competes in the “search and social space” with all other businesses in the “organic search” and “social space” industries. To assess the attractiveness and profitability of conducting digital marketing, businesses may attempt to use traditional strategic frameworks to determine attractiveness and profitability of engaging digital marketing.
This article talks about analysing the search ecosystem’s “keyword search space” with Porter’s 5 forces. With 58% of consumers starting with search and 99% of user usage conversion in purchase processes involving search, the proposed framework may help businesses in understanding the competitive industry of keyword search.
From the traditional perspective of Porter’s 5 forces, the keyword search space is an attractive and profitable but extremely competitive “industry” to compete in. Any companies with new focus on organic search or content marketing becomes a new entrant, and barriers of entry/exit are very low. Buyers like Google and Bing have extremely huge bargaining power, as well as social search suppliers like Facebook. Competitive rivalry is very fast-paced, with businesses optimizing organic search and producing relevant content all the time.
Businesses are required to build on social and search, yet the unpredictable and dynamic external forces put great pressure on digital marketing strategies. All in all, this article provides an interesting viewpoint on the modern technology industry and how businesses can consider it while shaping digital marketing strategies.