Search Engine Techniques and Strategies Patricia Neuray, Vice President, Eastern Sales The Power of eMarketing Conference May 21, 2003

2 Agenda The power of search Defining your strategy Optimizing your campaign Q & A

3 Usage Leads Generated Market Size Years in Existence Yellow Pages Direct MailSearch million phone calls/day 10.7 million pieces read/day million references/day million searches/day 1.7 million responses/day million leads/day $12-14 billion$44 billion$1-2 billion Search in the Channel Mix 96 years97 years 6 years Source: YPPA, DMA and Overture Estimates Currently Million “commercially-oriented” searches each day (U.S.)

4 User Preferences Consumers report the majority of their online purchases are from sites they found through search results Source: Jupiter Media Metrix “Paid Search Placement” Report, July 2001 % Percentage 55% 9% 7% 30%

5 Level of Targeting User’s Participation Search allows for active user participation and a high level of targeting resulting in better conversion rates High Low Active Passive Catalog Mail Trade Magazines Opt-in Direct Mail Network TV Radio Billboards Internet Search Target Value

6 Agenda The power of search Defining your strategy Optimizing your campaign Q & A

7 Multi-Channel Marketing Source: NPD Online Research How Internet is Used for Shopping Shop Online, Purchase Offline 51% Shop Online, Purchase Online 40% Shop Offline, Purchase Online 9% Search is a key component to your overall marketing strategy Demonstrates the need to be wherever your customers are – offline and online.

8 Source: U.S. online users media consumption, 2002: Jupiter, MAY 2002 Media spending: eMarketer, 2002 U.S. Media Consumption and Spending U.S. online users media consumption, 2002: JUPITER, MAY Media spending: eMarketer, Magazines Newspapers Radio TV Online Average Hours/Week $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $Billion Hours per week 2002 Media Spending

9 Integrating Search into Your Channel Mix Sophisticated marketers drive overall customer sales through multiple touch points Multi-channel shoppers are more valuable to e-commerce marketers because they: Make more purchases Shop more often Brand loyal Store Sales + Phone/Mail Order Sales + Web Sales = Increased Total Sales Source: INT Media Group

10 Agenda The power of search Defining your strategy Optimizing your campaign Q & A

11 Key Steps To Drive Sales Select and Manage Keywords Write and manage listings Bid to maximize profit and ROI Manage conversions Optimize campaign

12 Select Keywords Rationale Attract users who are looking to buy Diversify your shopper types Ensure your listings appear on your share of the 500 million monthly unique searches Examples Nike retailer: Running shoes, Nike shoes, Nike Air Jordans, Black Nike Air Jordans Book retailer: Mystery books, Books by Scott Turow, “Reversible Errors”, ISBN: X Electronics retailer: Electronics, DVD Players, Sony DVD players, Sony DVP-C660 When selecting keywords, keep the customer in mind What would a new customer search for versus an experienced customer? Select a range of general to specific keywords that describe your offering e.g. product lines, brands and part numbers

13 Manage Keywords Rationale Not all keywords need active management, especially low volume terms Allows you to manage more keywords be reducing complexity of your account Manage your search terms as a category Create categories that mirror your business and/or most easily allow you to manage your account Use Category Bidding Product lines, services High search volume versus low search volume Measure performance at the category level

14 Key Steps To Drive Sales Select and Manage Keywords Write and manage listings Bid to maximize profit and ROI Manage conversions Optimize campaign

15 Write Titles and Descriptions Rationale Research indicates: Perceived quality was approximately 60 percent higher in listings where the search term was included within the title and description Customers gave those listings nearly 50 percent higher “likelihood to click” rating thereby giving you more clicks at the same price Examples Search term: Sailboats Sailboats from Zephyr SeaCraft Zephyr Seacraft sells sailboats to private and professional buyers Include the search term in the title and description

16 Write Titles and Descriptions Rationale Shoppers use the title and description to decide whether or not to click on a site. If the title and description are accurate and clear, the user will know what to expect once they arrive on the site leading to higher conversions Write titles & descriptions that are tailored, clear and factual Avoid superlatives Accurately describe what the user will find when they go to your site

17 Write titles & descriptions that are tailored, clear and factual Write unique titles and descriptions for each search term Avoid ampersands and numbers replacing words When the geographic location is relevant, include it in the description Title and Description Research Rationale Research indicates: Users were more than 1.5X likely to click listings that are tailored Ampersands and “numbers replacing words” have a negative impact on likelihood to click and perceived quality Including the location can determine whether or not to click, resulting in more qualified leads

18 Key Steps To Drive Sales Select and Manage Keywords Write and manage listings Bid to maximize profit and ROI Manage conversions Optimize campaign

19 Bid to Maximize your Profit and ROI Bid an amount that meets your target ROI and profit metrics Track and calculate your ROI Use Auto Bid Use Premium Listings to increase traffic when appropriate Rationale The best combination of ROI and traffic volume will ensure maximum profit Reduce the time spent on bidding and spend more time managing your business Utilize Premium Listings to maximize exposure across the Overture network

20 Key Steps To Drive Sales Select and Manage Keywords Write and manage listings Bid to maximize profit and ROI Manage conversions Optimize campaign

21 Drive Sales Ensure your the site reflects company image and drives action Add key information (contact info, phone number, brands, BBB or Trust-E seals, etc.) The content of the page (copy, images, etc.) should be crafted to sell Photos should be large enough to see the detail while still loading quickly Include promotions or incentives to close the sale (free shipping, percentage off, gift with purchase, etc.) The shopping cart process should be easy to use Easy to add and remove items from the cart Easy to proceed to checkout Minimal information requirements Emphasize security - secure server and image of lock

22 Drive Sales Know your audience Gather key information (connection speeds, browser versions, display resolutions, etc.) Diagnose why your customers are leaving Track your customers’ click-path Where are your customers leaving and why?

23 Key Steps To Drive Sales Select and Manage Keywords Write and manage listings Bid to maximize profit and ROI Manage conversions Optimize campaign

24 Track your Results Result: The most cost-effective way to spend your marketing budget. Understanding how to track your visitors is the key to optimizing your paid placement search results. Following the traffic through the steps that lead to a sale will enable you to: Track conversion by keywords and overall campaign effectiveness Understand the number of visitors and the source of its sales Effectively manage your most important keywords Set your bids to maximize your return on investment Maximize your sales

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26 Agenda The power of search Defining your strategy Optimizing your campaign Q & A

Questions?