1 Balancing Paid and Organic Peter Hershberg, Managing Partner SES San Jose, August 10, 2006

Today’s Agenda Overview of Paid & Organic Complementing Models Examples of Effectively Balanced Search Analytics As A Bridge

3 Organic Search Results 75% Roughly of reply page clicks

4 Benefits of Search Engine Optimization Impartial Endorsement Long Term Solution Front-loaded Cost Huge Impact on Site Traffic

5 Paid Search

6 Benefits of Paid Search Marketing Control Messaging/Placement Change Messaging on Demand Broad Distribution Performance Pricing

7 Paid and Organic: Complementary Organic Lasting Impact Engines decide your placement Credible resource Costs defined on a page or project basis Bulk of investment during initial setup Paid Immediate Results You control content and placement Commercial Distribution Costs defined by click volume and competition Investment varies according to campaign

8 Why do them both? 5 out of 6 consumers don’t understand the difference between paid and unpaid listings They just click on what seems most relevant Source: Consumer Reports Web Watch Report “Searching for Disclosure”

9 Paid Search Enhances Organic Listings Source: MarketingSherpa Inc., IT Marketing Metrics Guide Top Listing in Both Paid and Organic Will Receive More Clicks Potential Clicks per 1,000 Impressions

10 Examples of integration

11 Day 0 The Life Cycle of a News Story Day 11 Week Published…Blogged…Searched! Paid Search Contextual Organic Search

12 Publishing

13 Publishing

14 Retail

15 Entertainment

16 Entertainment

17 Entertainment

18 Analytics Key to integration Optimize against top paid performers Use organic results to refine keyword list

19 Thank You!

20 Publishing

21 Balancing Listings in Retail

22 Balancing Listings in Publishing

23 Travel

24 Analytics