Google & Money - Search Star
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Transcript of Google & Money - Search Star
![Page 1: Google & Money - Search Star](https://reader035.fdocuments.in/reader035/viewer/2022062709/558d0412d8b42a1e2b8b4700/html5/thumbnails/1.jpg)
Google & MoneyMarch 2013
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Contents• Google in the UK• Google global revenues• What does it make $$$$$$$$$$$$s from?• SEO vs. PPC. Do people really click on the ads?• Google’s commercial plan• Google’s Problem
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• Total UK Revenues increased by 30% (Q4 2012 vs. Q4 2011) from £1.06bn to £1.30bn.
Google in the UK
Source: Hitwise Jan 2013
Search Engine Dec 2011 Share Dec 2012 Share Change
Google 91.15% 88.35% -2.80%
Microsoft 3.84% 4.99% 1.15%
Yahoo 2.72% 3.58% 0.86%
Ask 1.92% 2.59% 0.67%
Other 0.38% 0.49% 0.11%
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Google Global Revenue ($m)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
Google Websites Google Network Websites Total Revenue
Share Of Revenues Q4 2012:
- USA = 46%- UK = 11%
- ROW = 43%
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What Are The Costs & Profit? ($m)
2010 2011 2012Revenue $29,321.00 $37,905.00 $46,039.00
Traffi c Acquisition Cost $7,317.00 $8,811.00 $10,956.00Other Cost of Revenue $3,100.00 $4,377.00 $6,620.00Total Cost of Revenue $10,417.00 $13,188.00 $17,576.00
R&D $3,762.00 $5,162.00 $6,793.00Sales & Marketing $2,799.00 $4,589.00 $6,143.00General Admin $1,962.00 $2,724.00 $3,845.00D0J Fine $500.00Total Costs & Expenses $8,523.00 $12,975.00 $16,781.00
Income From Operations $10,381.00 $11,742.00 $12,760.00Net Income $8,505.00 $9,737.00 $10,737.00
Payments to network & distribution
partners
Data centres, content acquisition costs, credit card
charges etc.
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What Does It Make It From?
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Do People Really Click On The Ads?• 94% of searchers click on the organic
results vs. 6% on the PPC ads (Source: GroupM & Econsultancy 2012)• “The war of 1812”• “Whitney Houston”• “Weather in Bristol”
• Yet for “high commercial intent” search phrases 64.6% of clicks go to the PPC (Source: WordStream 2012)
• “kenwood food mixers”• “Best Internet Marketing Software”• “Personal injury solicitors”
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94% of Searchers Click Organic Results
Source: GroupM & Econsultancy 2012
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64.6% of Commercial Search Goes PPC
Source: WordStream 2012
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Google’s Plan• Larger, more relevant & engaging ad formats for
any remotely commercial search & content• Build Google as a shopping destination• Integrate relevant & useful advertising into all
future devices• Crowd out, remove & make unnecessary organic
results for commercial activity• Ever better tracking & accountability
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1. Site Links 2. Location Extensions3. Communications Extensions4. Call Extensions5. Product Extensions6. Social Extensions7. Offer Extensions
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Larger & More Relevant Ad Formats
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• Better Targeting– Placement, Topic, Contextual,
Demographic, Interest & Remarketing
• Better Ad Formats–More display & rich media ad formats
across display network & especially YouTube
– 300x600 half page launched Nov 2012
Better Display Targeting & Ad Formats
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Product Listing Ads
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Google As a Shopping Destination• Launching Google Trusted Stores in Q3 2013• Free to consumer & offering £1000 purchase
protection• Shoppers sign up through Google account
• Retailers get badge with trust stats embedded• Google gets data!
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Crowd Out Organic Search
Organic
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100% Relevant for Searchers
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PPC vs. SEO State of PlayPPC Wins• Near domination of results
for commercial keyword searches
• Engaging ad formats drive high click rates & ROI
PPC Issues• Difficult for beginners as
becomes increasingly sophisticated
• Google makes it easier to spend rather than save
SEO Wins• Still incredibly dominant for
low-value informational keyword searches
SEO Issues• Increasingly difficult to
measure• Increasingly difficult &
costly to execute• Increasingly unpredictable
results
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• Ave. ad Cost Per Click declined 6% YoY• Clicks on new devices must be monetized
Google’s Problem
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“We’re seeing tremendous innovation in advertising, which will help us monetize mobile queries more effectively than desktop today. Indeed, our mobile monetization per query is already a significant fraction compared to desktop. In short, as we transition from one screen to multiple screens, Google has enormous opportunities to innovate and drive ever-higher monetization, just like search in 2000” Larry Page Oct 2012
Relevant Ads on Multiple Screens & Devices
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• Cross device tracking is imminent via Google Accounts
• Google wallet to link footfall to advertising
• Accountability keeps Finance Directors happily writing cheques
Better Tracking & Accountability
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Who are Search Star?
• Search Star Ltd was established in August 2005• Specialists in PPC, analytics & conversion
optimisation• 10 Account Managers - all Google & Bing
Advertising & Analytics Professionals• Buy profitable traffic efficiently, effectively &
accountably for ambitious private sector clients
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…& if you want “Ten Top Tips”1. Get a great website2. Be fussy…research or purchase?3. Go granular4. Work at your ad copy5. Be social6. Mobile - Google’s U-Turn7. Don’t forget Bing8. Track everything9. Search vs. display – all clicks are not equal
(Facebook)10.Remarketing