Research is the essential first step of all marketing and selling, both online and off-line. There is no point in offering a business service that no-one needs or creating a product for which there is no demand. Establishing that there is demand and therefore money to be made is the driving force behind market research.
How To Find A Profitable Market
In online marketing, this equates to positioning your business where there is money being spent. It is also necessary to establish a channel of contact with those who are spending so that they can spend with you.
Here’s how and why this works.
The majority of Internet users are not online to spend money, although statistics indicate that the number of people who search the web looking to buy something is rapidly increasing.
The majority of Internet users are online looking for information.
To do this, they use one of the major search engines, overwhelmingly Google as they control more than 70 % of the global search market.
When this searcher uses Google, they type in a search term that best describes what they are looking for.
For instance, if they are looking for information about ‘weight loss for teenagers’, this would be their search term. This is the results page they are presented with when they do so:
On this page, you have two different kinds of results.
At the top right and down the right-hand side, you have adverts placed through Google (AdWords). These are from advertisers who have products or services to sell.
If you had a website that sold a product in this market, you too could advertise.
To grab a spot on the all-important first results page would cost a fortune.
This probably puts it beyond your budget or if not, your advertising campaign would have to be spectacularly successful if you were to make any money.
In the screenshot above, there are natural search results on the left-hand side of the page (beneath the ad block). Because the algorithm that drives their, these are sites that Google places there searches sees these sites as being the most relevant to the search term used.
What this means is that the owners of the featured sites have had to put in a massive amount of time, effort and probably money to get their site into one of the top positions.
Once again, this is likely to be beyond your resources, particularly in the early days.
There is therefore one inescapable conclusion to be drawn. There is plenty of money being spent in this market– there would not be so many advertisers if there wasn’t– but there is little or no chance that you could get your hands on any of it if you targeted ‘weight loss for teenagers’.
What you need to do is go down a level to a smaller, tighter section of the overall market where competition levels are not quite so hot. This is often known as niche market research.What you need to do is go down a level to a smaller, tighter section of the overall market where competition levels are not quite so hot. This is often known as niche market research.