Keep People Clicking

Another warning is not to bid too much money on individual keywords. Highly competitive terms (especially prevalent in areas such as travel and electronics) may attract bid rates so high that getting an effective ROI can be impossible.

If your business occupies a unique niche, however, selling via keywords can be very successful. "Keywords are still the best tactic for us," says Marc Lehmann, CEO of Australian online accounting software developer NETapplica. "Google is our number one salesperson."

Electronic Marketing Restraints

While electronic marketing offers new opportunities, it isn't a world without boundaries. This year's introduction of the Do Not Call register, combined with existing protections, means that businesses must tread carefully in all communications with customers.

The Do Not Call register, which is scheduled to go into operation in May 2007, allows consumers to opt out of receiving all telemarketing calls. Businesses will be responsible for ensuring they don't place calls to individuals listed in the register, unless they already have a business relationship with that customer. Codes of practice for this were still in development at the time of writing.

Businesses also need to be mindful of the Spam Act, which has been in place since April 2004 and carries potential penalties of up to $1.1 million for violations. Under the act, it is an offence for an Australian business to send unsolicited email. Again, businesses may send messages with customers who have explicitly signed up for electronic communications, or with whom they have an established business relationship.