The Power of eMarketing Conference Todd Daum Vice President, Marketing September 5, 2002.

The Power of eMarketing Conference

Todd DaumVice President, Marketing

September 5, 2002

Agenda

The Power of Search

Succeeding with Search and your Available Options

Managing Paid Placement Campaigns

Paid Placement Case Study and Conversion Tips

Q & A

Search is Powerful Marketing

60-70 Million “commercially-oriented” searches each day in the U.S.

Customers report the majority of their online purchases are from sites they found through search results.

Customers pre-qualify themselves by actively searching for products/services.

Pre-qualified leads result in higher conversion rates.

Source: Overture Estimates and NPD Branding Study (February 2001)

Lev

el o

f Ta

rget

ing

User’s Participation

Search allows for active user participation and a high level of targeting.

High

Low

ActivePassive

Catalog MailTrade MagazinesOpt-in E-mailDirect Mail

Network TVRadioBillboards

Internet Search

The Power of Search: Unique Value

Usage

Leads Generated

Market Size

Years in Existence

Yellow Pages Direct Mail Search

25-35 million phone calls/day

10.7 million pieces read/day

30-40 millionreferences/day

180-200 million searches/day

1.7 million responses/day

90-100 million leads/day

$12 Billion $44 Billion $1 Billion

The Power of Search: Untapped Potential

95 Years 96 Years 4 Years

Source: YPPA, DMA and Overture Estimates

Search delivers volumes of leads to the most popular commerce industries on the Web.

Monthly traffic in major search engine categories (in millions).

Source: Overture home page and affiliate partner statistics, July 2002

The Power of Search: Volume and Diversity

108.5

84.4

73.5

73.4

71.4

44.6

38.3

31.4

28.6

28.0

0.0 20.0 40.0 60.0 80.0 100.0 120.0

Mass Merchants

IT & Computing

Health & Beauty

Professional Services

Travel

Books/Movies/Music

Financial Services

Automotive

Home & Garden

Toys, Hobbies & Collectibles

The Power of Search: User’s Preferred Method

When searching for products online to buy, what is the most common way you find online vendors or stores?

15%

2%

4%

4%

5%

5%

23%

42%Search Engine – product, brand or store name

Straight to store – type in URL

Search Engine – use shopping channel

Email from store or company

Click on Internet Ads

Use a shopping bot

Site with suggestions/reviews of web stores

Other

Source: Jupiter Media Metrix “Paid Search Placement” Report, July 2001

Succeeding With Search

1. Appear on major search engines The top 10 sites all of which have search engines reach over 90% of all active Internet users.

2. Get listed at the top of the search results Research shows that the top 3 search listings receive over 70% of all clicks.

3. Find the most time effective submission option Appearing in multiple search engines ensures maximum reach but can be a time-consuming process.

4. Control costs Controlling the cost per lead allows businesses to achieve ROI objectives.

Search Engine Submission Options

1. Search Engine Marketers (SEMs)Business hires a “specialist” to get their site listed with multiple search engines, including algorithmic.

3. Paid PlacementBusiness submits site to one search engine which distributes its results to other sites.

2. Paid Inclusion Business pay search engine directly to be included in their results

or reviewed by Webcrawler more frequently.

Search EngineMarketers

Appearing onMajor Search Engines

Results may appear in selected search engine


PaidPlacement

Results listed across a network of search sites

Paid Inclusion

Appearing on Major Search Engines



Getting Listed at the Top



No control

Complete control over position

No control

PaidPlacement


Paid Inclusion





TimeEffective

Submission



No control


No controlMultiple distribution achieved with one buy

Multiple distribution achieved with one buy

PaidPlacement


Can be time intensive

Paid Inclusion

Time Effective Submission

Controlling Costs




TimeEffective

Submission

ControllingCosts



No control


No controlMultiple distribution achieved with one buy

Multiple distribution achieved with one buy

Cost based on inclusion, not performance

Recurring costs based on inclusion, not performance

Cost based on performance (cost per click)

PaidPlacement


Can be time intensive

Paid Inclusion

SEM/Algorithmic Search Example

3. Listings mayAppear within other search results

3. Listings mayAppear within other search results

1. Search engine positions listings according to an algorithmic formula.

2. SEMs attempt to improve ranking of results

Paid Inclusion Example

1. Business sets up account, submits listings and pays inclusion fee.

2. Listings may appear within other search results

Paid Placement Example

2. Overture’s 100+ editors screen for relevance.

3. User submits a search query.

4. Listings dynamically ordered by level of bid.

6. User clicks, advertiser pays for qualified lead.

1. Advertisers set up account & submits listings: Keywords, titles, descriptions & bids.

5. Listings distributed across network of search sites.

Overture’s Premium Listings

Overture’s Premium Listings

Paid Placement Example

Pay-for-Performance Search = Positive ROI

Source: Jupiter Online Advertising Effectiveness Study 9/01

12%

16%

23%

24%

29%

0% 5% 10% 15% 20% 25% 30%

CPM Banners

CPC Banners

Paid InclusionProduct

Opt-in E-mail

Pay for PlacementSearch Engines

PFP Search ROI rated higher than other online Ad Tools

What do you think is the return on investment for each of the online advertising mediums that were used last quarter?

Case Study: eBags

Select relevant keywords

Write clear, factual titles and descriptions

Determine listing position

Track your results

Managing Paid Placement Campaigns

Case Study: eBags

Company Background and Situation

eBags is a leading online provider of bags, accessories and travel-related products

Has thousands of listings

Wanted to understand its conversion rate and ROI to optimize their account

Keywords, Titles and Descriptions

Choose relevant search terms

• Backpacks

• Handbags

• Samsonite luggage

1.

eBags brings you a large selection of backpacks to make shopping online easy and enjoyable. Great discounts, consumer reviews and always 100% satisfaction.

www.ebags.com

Write clear, factual titles and descriptions

Find Great Backpacks at eBags.com

• Include the keyword in both your title and description.• Direct URLs to pages with keyword related content.

Result:• Consumers find precisely what they’re looking for.• Increased sales conversion rates.

Determine Listing Position

Search Listing

$0.50

Bid Amount Your Position

1. $0.50

2. $0.46

3. $0.40

4. $0.37(Advertisers Max Bid: $0.50)

1.eBags brings you a large selection of backpacks to make shopping online easy and enjoyable. Great discounts, consumer reviews and always 100% satisfaction.

www.ebags.com


• Bid amounts should be set to maximize your return on investment. (Dependent upon the conversion rate and your profitability.)

• Overture’s Premium Listings (top 3 positions) reach more than 80% of active U.S. Internet users.

1

• Branding: 33% of consumers believed seeing a company within the opening lines of search results made them a top company in its field.

2

1. Nielsen/NetRatings, July 2002 2. iProspect user survey, July 30, 2002

Determine Listing Position

Search Listing Max Bid Cost

1. $0.50

2. $0.46

3. $0.40

4. $0.37(Advertisers Max Bid: $0.50)

1.eBags brings you a large selection of backpacks to make shopping online easy and enjoyable. Great discounts, consumer reviews and always 100% satisfaction.

www.ebags.com


• Listing position is determined by advertiser’s Max Bid.

• Auto-bidding ensures the advertiser only pays $0.01 above the next advertiser’s Max Bid, “bubble-popping” any gaps in the bid pricing.

• Simplifies campaign management, allowing advertisers to concentrate on their core business rather than their marketing efforts.

“Auto-Bidding”

$0.47

$0.41

$0.05

$0.38

Understanding how to track your visitors is the key to optimizing your paid placement search results.

Track your Results

Following the traffic through the steps that lead to a sale will enable you to:

• Track conversion by keyword.• Effectively manage your most important keywords.• Set your bids to maximize your return on investment.• Maximize your sales.

Result:• The most cost-effective way to spend your marketing budget.


eBags brings you a large selection of backpacks to make shopping online easy and enjoyable. Great discounts, consumer reviews and always 100% satisfaction.

Backpacks

Add tracking URL here

www.ebags.com/backpacks

$0.50

?source=overture&kw=backpacks

Track your Results

Case Study: eBags

Added tracking URLs, tracked visitors and sales

What they did Result

Allowed them to understand the number of visitors and the source of its sales

Determined their ROI Allowed them to understand the effectiveness of its Overture keywords

Optimized their account• Added additional relevant terms• Wrote clear titles and descriptions• Moved some terms into Premium

Listings• Optimized bids

Tripled its traffic Increased its conversion rate by

nearly 10% Increased overall profits Maximized its ROI

Paid Placement Conversion Tips

1. Select “portfolio” of relevant product/service keywords – general to specific.

2. Use clear and factual titles/descriptions, including keywords in both areas.

3. Send the user directly to the specific product/service page.

4. Use tracking URLs at the keyword level to determine the “best” performing terms and optimize campaign accordingly.

5. Position your search listings as high as your cost structure allows (i.e., gain maximum exposure, while maximizing your ROI).

6. Develop new terms around your best searched terms.

Questions?

The Power of eMarketing Conference Todd Daum Vice President, Marketing September 5, 2002.

Documents

Transcript of The Power of eMarketing Conference Todd Daum Vice President, Marketing September 5, 2002.