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Search 101

Matt Duffy

Resolution MediaObligatory Creds

Search IndustryIntroduction to the Engines

Value of Search Why is Search important?

Search ExecutionPaid vs. Natural Search

Creative Applications & Innovations

Current and future search trends

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Agenda

Resolution Media Overview

Staff: 85+ dedicated search marketing professionals

Locations: Headquartered in Chicago, IL with offices in NYC, San Francisco, and Los Angeles

Chicago (314 Superior)

Chicago (225 Michigan) - OMD

NYC (195 Broadway)

NYC (488 Madison Ave) - PHD

San Francisco (555 Market)

Los Angeles (5353 Grosvenor Blvd) – TBWA/Chiat

History: Founded September 2003. Acquired by Omnicom Media Group in 2005

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Partner Agencies and Clients

Agencies: Clients:

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SEARCH INDUSTRY

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The Consumer is in Control

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What % of Internet Traffic Starts at a Search Engine?

85%Source: Seventh World Wide Web User Survey; Georgia Institute of Technology 9

Everyone Searches

Content

CommunityCommerce

61Billion monthly

searchesMonthly searches per

searcher (on avg)

80

Source: comScore August 2007 10

2009 Ad Investment Outlook

11Source: Interpublic Group, Dec 2008

The Growth of Search Engine Marketing

$10.7 Billion for Paid Search in 2008

$19.5 Billion projected in 2013

Source: eMarketer, Nov 2008; Feb 2009

• ~20% Yearly Growth for SEO

Investments

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Search

45%

Display

20%Video

2%

Rich Media

8%

Classifieds

13%

Lead

Generation

7%

Sponsorships

3%

Email

2%

2008 U.S. Online Advertising Spend, by Format

The Engines

Share of U.S. Searches

Google, Yahoo!, and Bing make up 90% of searches

Comscore: “Share of Searches”, Feb. 2008

Google59%

Yahoo22%

Bing10%

AOL5%

Ask4%

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There are many other players beyond Google

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Is now the #2 search engine in the world!

A Search Engine‟s Goals & Objectives

1. Index: Accumulate large index (database) of web documents to search

2. Be Relevant: Provide highly-relevant results to users (better than competitors)

3. Make Money: Generate revenue via paid advertising and related business ventures that typically leverage large amount of traffic

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Commonality: Search Starts with a Query…

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FedEx

Printing services

FedEx Freight

Overnight shipping

Search is All About Connections

Community

Products

Information

Passions

Value of SearchWhy is it Important?

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Search Review

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Activation Medium

• Ability to drive consumers to desired action onsite (Transaction Channel)

Fuel for Business Intelligence

• Online search behavior uncovers opportunity for advanced consumer targeting

Unique Marketing Channel

• Push vs. Pull Medium

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Other Media Drives Search

Activity

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37% of Online Searchers are

driven by television ads

30% of Online Searchers are

driven by magazine &

newspaper ads

17% of Online Searchers

are driven by radio ads9% of Online Searchers are

driven by outdoor media

Source: iProspect Offline Channel Influence on Online Search Behavior Study, August 2007

25% of Users exposed to display

ads searched on a brand term

Search Connects Intent with Content

- Showtime Interaction

- Brand Consideration

- Research of Programs

- Contact a Provider

Action

IntentThrough Market Exposure

• Online Banners

• Television

• Print

• Video

Result- New Customer

- Interest in new shows

- Brand Loyalty

Query Successful Connection

Relevant Content

Missed Opportunity….

- HBO Interaction

- Brand Consideration

- Research of Programs

- Contact a Provider

Action

IntentThrough Market Exposure

• Online Banners

• Television

• Print

• Video

Result- New Customer

- Interest in new shows

- Brand Loyalty

Query Unsuccessful Connection

Relevant Content

Buzz Words

Optimization

Maximization

Expansion

Account Structure

Testing

Keyword

Bids

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Efficiency

Traffic

SEM

SEO

Natural Search

Ad Group

Campaign

Content Outreach

Linking Strategy

Meta Data

Algorithm

Analytics

Tracking

Tagging

What is the VALUE?

How long were they

on the site?

How old are they?

How many times did they visit?

Did they

buy?

Where did they come

from?

Where were

they searching?

What gender are

they?

When did they leave? Where did

they go?

What is their annual

income?

What other sites are

they visiting?

What path did they take

through our site?

What other terms did they

search?

Was their query

informational or transactional?

When were

they searching?

Why didn’t

they take

action?

Perc

ent of S

ite V

isitors

0%

10%

20%

30%

40%

50%

60%

70%

0%

10%

20%

30%

40%

50%

60%

70%

5,020,178 Clicks

496,599 Reservations

4,523,579Missed Opportunities

“Your most unhappy

customers are your

greatest source of

learning.”

-Bill Gates

Founder of Microsoft Corporation

When does “Spring” begin & end?

Source: Google Insights for Search 29

What‟s the subject of our Spring spot?

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Paid Search

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The Search Engine Results Page (SERP)

Sponsored Listings (aka Paid Search)

Buy ads aroundthe content peopleare looking for

Organic Listings(aka Natural Search)

Be the content thatpeople are lookingfor (SEO)

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How Do You Run a Paid Search Campaign?

Write Ad Copy

Choose Landing Page

Set Bid Price

(cost per click auction)

Rinse and Repeat!

(as often as hourly)

Select Keywords

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Account - Client

Campaign Campaign Campaign Campaign

Ad Group Ad Group

Ad Group Ad Group

Ad GroupAd Group

KeywordKeywordKeywordKeywordKeywordKeyword

Creative

Creative

Creative

PPC – Account Structure (Family Tree)

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PPC – Account Structure (Family Tree)

FedEx

Ground FreightOffice Small Biz

PrintingPrint Copies

Online PrintingPrint Services

In-Store PrintingPrints

Printing

Biz Cards

LocationsBrand

Supplies

Letters

Copy Points Mirror Search Cycle

Keyword:Online

Banking

Attention

CheckingAccount

Interest

Interest EarningChecking Account

Consideration

Lion PowerFree Checking

Action

Copy Points:

Search

Stages of the Search Cycle

Wide Selection of

Online Banking

Services. Securely

Manage Your Accounts

No Fees

No Minimums

Free Checks

Earn up to 3.4%

Interest With Your

Choice of Many

Different Accounts

Apply Today and Use

Our Harris Switch Kit

to Make the Moving

Process Simple

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Targeted Landing Page Selection to Increase Relevancy

Lion Power Free Checking

Online Banking Checking Account

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Natural Search (SEO)Search Engine Optimization

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Two Ways to Connect Your Brand to Queries

Sponsored Listings (aka Paid Search)

Organic Listings(aka Natural Search)

Be the content that people are looking for (SEO)

Buy ads around the content people are looking for

Search Engine Optimization

Defining SEO

Refers to the process of “optimizing” both the on-page and off-page ranking factors in order to achieve high search engine rankings for targeted search terms

SEO is a program, not a campaign (no Media spend)

Three main optimization areas for improving rankings

Content (title tags, keyword density)

Technical Architecture (HTML coding)

Linking Relationships (quantity of quality links)

What do Searchers prefer?

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Engine Activity

What We See

What the Engines See

How results show up in natural search?

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Step 1: Finding Content

Search spider “crawls” the web to find new documents (web pages, other documents)

Step 2: Indexing Content

Search engines files the content and adds it to its database.

Step 3: Searching Index

Search engine searches its own database when user enters in a search to find related documents

Step 4: Ranking Results

Search engine ranks resulting documents using an algorithm that assigns various weights to various ranking factors

How Do You Run a Natural Search Campaign?

Select Keywords

Optimize Website

Content

Architecture

Code

Generate Links

Rinse and Repeat! (working within web dev. cycle)

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SEO Overview

Crawlability

Become more „crawlable‟ to search

engines

Content Outreach

Increase link popularity and relevance

Ranking

Increase position on pinnacle keywords

Competition

Become more competitive in the

online space

Drive More Traffic to site

Why Natural Rankings Matter…

Natural Search Study

*Data provided by 2007 Cornell panel study

The „Fold‟88.4%

Reality Check:

• If you‟re not on the first page, no one will see your text link

• If no one sees your text link, no one will click

• If no one clicks, no one will go to your site

Paid and Natural Search Synergy

Source: iCrossing Search Synergy: Natural & Paid Search Symbiosis Study, March 0747

• Clicks increased 92%

• Actions increased 45%

• Orders Increased 45%

• Page views increased 44%

• Visitors increased 41%

• Time onsite increased 40%

Increased Consumer Activity

• Studies have shown integration of natural and paid search

will drive superior ROI

• When appearing in both natural and paid search for the

same keyword impression…

SEM and SEO Comparison

Paid Search (SEM)

• Involves Media Spend with Engines

• Results in 1-2 days

• Generally more costly per visitor and per conversion

• Easy to compete in highly competitive market space

(but it will cost you)

Natural Search (SEO)

• It‟s a program, not a campaign. No media spend.

• Results take 2 weeks to 4 months

• Generally more cost-effective, doesn‟t penalize for more traffic

• Difficult to compete in highly competitive market space

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INNOVATIONS IN SEARCH

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Emerging Trend: Extended Content

Impact: ALL online content must be optimized for Searchers

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Emerging Trend: Personalization

Impact: People can customize how information is digested, so it must be compelling.

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Emerging Trend: Targeting

Impact: Ability to overlay additional targeting beyond the query.

Contextual Targeting

Geo-targeting

Re-targeting

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Device targeting

Language targeting

Emerging Trend: Interaction

Impact: Point & click replaces keyword search.

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Search Review

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Activation Medium

• Ability to drive consumers to desired action onsite (Transaction Channel)

Fuel for Business Intelligence

• Online search behavior uncovers opportunity for advanced consumer targeting

Unique Marketing Channel

• Push vs. Pull Medium

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Search Industry

Questions

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Thank You!

Matt DuffyMDuffy@resolutionmedia.com

917-344-3240

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Appendix

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Testing

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Creative Messaging

Consumer Behavior and Ad Relevance

12.4% 11.6%Click Through Rate

Impressions: 125,000 Impressions: 137,000

Clicks: 16,000Clicks: 15,500

Creative Testing Story

The „Shipping‟ Campaign Click through Rate for the ad below is currently 2.30%...

After running a four week creative test, we find that the ad below has a higher CTR by 0.85%, equating to 3.15%

Currently, we‟re getting an average of 50,000,000 impressions per month, so at the current CTR we‟re averaging 1,150,000 clicks/mo.

Assuming average number of impressions stays relative, the lift in click volume would be 425,000 per month….

and a total of 5,100,000 clicks per year

Testing: Landing Pages

Testing: Landing Pages

1.75% 2.20%Conversion Percentage

Conversion Story

Conversion Percentage through July is ~9.6%

If we increase conversion percentage by 2%, equating to 11.6%

Then at the current click volume,

reservations will increase by

21% adding ~87,167

reservations for January– July

A total of 12,452 additional

reservations per month

Understanding the Math

Total additional Reservations per month = 12,452

If the Reservation to Actual Pickup rate is… 65%

If the Avg. Cost Per Reservation / Day is… $35

If the Avg. Length of Rental is… 2.5 days

Total Additional Revenue per month =

$708,208

Understanding the Math

$8,496,000Additional Revenue for the Year

Campaign ManagementCampaign Performance Evaluation

Web Analytics DataCampaign Management Tools

Search Engines

Data Warehouse

Reporting Optimizations

Workflow / Best Practices

AnalyticsBudgetPacing

Proprietary Tool for Data Analytics and Workflow

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Resolution Media

Why should our clients use Resolution Media rather than working directly with Google?

Hint: 3 Main Reasons

Centralized Source for EnginesAbility to choose media platform

Holistic Search SolutionSEM and SEO services

Focus on Client Goals

Focus on Driving Revenue (KPIs), not Clicks

Week Impressions Clicks Cost Avg. CPC CTR Units CPU Conv %

May 29 390,000 12,100 $40,200 $3.32 3.10% 908 $44.27 7.50%

May 22 266,000 11,500 $37,800 $3.28 4.32% 829 $45.59 7.20%

May 15 168,000 12,230 $46,000 $3.76 7.27% 915 $50.27 7.48%

May 8 174,000 11,875 $43,600 $3.67 6.82% 841 $51.84 7.08%

May 1 32,000 6,100 $14,300 $2.34 19.06% 460 $31.08 7.54%

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Data Set

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How will the recession change your behavior?

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Proprietary and Confidential

Site

Arc

hite

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Ma

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3 Pillars of SEO

Three main optimization areas for improving rankings1. Page Content (title tags, keyword use)

2. Technical Architecture (HTML coding)

3. Linking Relationships (quantity of quality links)

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It‟s Not Just about Websites

Social Media

Video

News

User Gen