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

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Presentation on theme: "The Power of eMarketing Conference Todd Daum Vice President, Marketing September 5, 2002."— Presentation transcript:

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

2 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

3 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)

4 Level of Targeting User’s Participation Search allows for active user participation and a high level of targeting. High Low Active Passive Catalog Mail Trade Magazines Opt-in E-mail Direct Mail Network TV Radio Billboards Internet Search The Power of Search: Unique Value

5 Usage Leads Generated Market Size Years in Existence Yellow PagesDirect MailSearch 25-35 million phone calls/day 10.7 million pieces read/day 30-40 million references/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 Years96 Years 4 Years Source: YPPA, DMA and Overture Estimates

6 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

7 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? 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

8 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.

9 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 Placement Business 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.

10 Search Engine Marketers Appearing on Major Search Engines Results may appear in selected search engine Paid Placement Results listed across a network of search sites Paid Inclusion Appearing on Major Search Engines

11 Search Engine Marketers Appearing on Major Search Engines Getting Listed at the Top Results may appear in selected search engine No control Complete control over position No control Paid Placement Results listed across a network of search sites Paid Inclusion Getting Listed at the Top

12 Search Engine Marketers Appearing on Major Search Engines Getting Listed at the Top Time Effective Submission Results may appear in selected search engine No control Complete control over position No control Multiple distribution achieved with one buy Paid Placement Results listed across a network of search sites Can be time intensive Paid Inclusion Time Effective Submission

13 Controlling Costs Search Engine Marketers Appearing on Major Search Engines Getting Listed at the Top Time Effective Submission Controlling Costs Results may appear in selected search engine No control Complete control over position No control 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) Paid Placement Results listed across a network of search sites Can be time intensive Paid Inclusion

14 SEM/Algorithmic Search Example 3. Listings may Appear within other search results 3. Listings may Appear within other search results 1. Search engine positions listings according to an algorithmic formula. 2. SEMs attempt to improve ranking of results

15 Paid Inclusion Example 1. Business sets up account, submits listings and pays inclusion fee. 2. Listings may appear within other search results

16 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.

17 Overture’s Premium Listings Overture’s Premium Listings Paid Placement Example

18 Pay-for-Performance Search = Positive ROI Source: Jupiter Online Advertising Effectiveness Study 9/01 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?

19 Case Study: eBags Select relevant keywords Write clear, factual titles and descriptions Determine listing position Track your results Managing Paid Placement Campaigns

20 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

21 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.

22 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 Find Great Backpacks at 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

23 Determine Listing Position Search Listing Max BidCost 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 Find Great Backpacks at 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

24 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.

25 Find Great Backpacks at eBags.com 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

26 Case Study: eBags  Added tracking URLs, tracked visitors and sales What they didResult  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

27 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.

28 Questions?


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