SEMPO European User Study February 13, 2007 SEM PO

Search Marketing Efforts Across France, Italy, & Spain Jupiter Custom Research For SEMPO February 2007 Richard Gans. Peter Sargent

Methodology In January 2007, JupiterResearch conducted a formal survey of advertisers and agencies in France, Spain and Italy. Respondents were asked approximately 26 closed-ended questions. They were targeted by familiarity with their company's search marketing efforts and online advertising initiatives. A total of 95 advertisers and 190 agencies completed the survey. Respondents received an e-mail invitation to participate in the survey, with an attached URL linked to the Web-based survey form. As an incentive, respondents were going to receive the topline results of the survey. In this survey effort, JupiterResearch worked with its research partner InsightExpress on the technical tasks of survey fielding and data processing.

In January 2007, JupiterResearch conducted a formal survey of advertisers and agencies in France, Spain and Italy. Respondents were asked approximately 26 closed-ended questions. They were targeted by familiarity with their company's search marketing efforts and online advertising initiatives. A total of 95 advertisers and 190 agencies completed the survey. Respondents received an e-mail invitation to participate in the survey, with an attached URL linked to the Web-based survey form. As an incentive, respondents were going to receive the topline results of the survey.

In this survey effort, JupiterResearch worked with its research partner InsightExpress on the technical tasks of survey fielding and data processing.

Key Questions Where and how are marketers investing in SEM in France, Italy, and Spain? What are the specific investments and perceived value of paid placement, paid inclusion, SEO, and SEM technologies? Which SEM services are in the greatest demand? What are the key success metrics that marketers are using to evaluate their SEM programs? Which SEM channels are growing: local, pay per call, mobile search, etc.? How is budget allocated and how is this marketing budget derived?

Where and how are marketers investing in SEM in France, Italy, and Spain?

What are the specific investments and perceived value of paid placement, paid inclusion, SEO, and SEM technologies?

Which SEM services are in the greatest demand?

What are the key success metrics that marketers are using to evaluate their SEM programs?

Which SEM channels are growing: local, pay per call, mobile search, etc.?

How is budget allocated and how is this marketing budget derived?

Top Level Findings 44% of advertisers spent at least 50,000 Euros on online/offline ad placement in last 12 months 31% of advertisers spent at least 50,000 Euros on search marketing, compared to 37% of agencies who spent that much on search marketing on behalf of their clients 62% of advertisers plan to increase search marketing spend over the next 12 months French, Spanish, and Italian advertisers focus more on SEO, compared to paid search, although budgets are higher for paid Advertisers plan on utilizing mobile search, video search and paid per call more in 2007 Advertisers’ top search marketing objectives are generating immediate online sales and building brand awareness Increasing competition for top rankings has been advertisers’ and agencies’ greatest problem with their search marketing efforts Competition is a greater problem for agencies in France, compared to those in Spain and Italy

44% of advertisers spent at least 50,000 Euros on online/offline ad placement in last 12 months

31% of advertisers spent at least 50,000 Euros on search marketing, compared to 37% of agencies who spent that much on search marketing on behalf of their clients

62% of advertisers plan to increase search marketing spend over the next 12 months

French, Spanish, and Italian advertisers focus more on SEO, compared to paid search, although budgets are higher for paid

Advertisers plan on utilizing mobile search, video search and paid per call more in 2007

Advertisers’ top search marketing objectives are generating immediate online sales and building brand awareness

Increasing competition for top rankings has been advertisers’ and agencies’ greatest problem with their search marketing efforts

Competition is a greater problem for agencies in France, compared to those in Spain and Italy

Top Level Findings (cont.) Both advertisers and agencies, especially agencies in Spain, are satisfied with the ROI from their search marketing activities Landing page optimization, adding new keywords, and changing the ad text have had the greatest positive impact on search marketing campaigns for both advertisers and agencies Keywords and landing page optimization have a greater impact for agencies in Spain, compared to those in France and Italy The main reasons advertisers hire agencies is to improve results, and due to a lack on internal knowledge/expertise SEO strategy and paid search/SEO implementation are the most commonly used agency services by advertisers Advertisers have the greatest preference towards using revenue share as an agency payment method Approximately one third of advertisers are not aware of how much they are paying in agency fees 26% of advertisers not currently using an agency would consider using one to improve results. However, 61% are satisfied with keeping search marketing in-house

Both advertisers and agencies, especially agencies in Spain, are satisfied with the ROI from their search marketing activities

Landing page optimization, adding new keywords, and changing the ad text have had the greatest positive impact on search marketing campaigns for both advertisers and agencies

Keywords and landing page optimization have a greater impact for agencies in Spain, compared to those in France and Italy

The main reasons advertisers hire agencies is to improve results, and due to a lack on internal knowledge/expertise

SEO strategy and paid search/SEO implementation are the most commonly used agency services by advertisers

Advertisers have the greatest preference towards using revenue share as an agency payment method

Approximately one third of advertisers are not aware of how much they are paying in agency fees

26% of advertisers not currently using an agency would consider using one to improve results. However, 61% are satisfied with keeping search marketing in-house

Advertisers

Over 20% Of Advertisers Are Allocating 81-100% Of Search Marketing Budget To Organic Search Mgt, Paid Placement Fees Question:. What percentage of your 2006 search marketing budget is allocated to each of the following programs? (Results must add up to 100%. Enter “0” if you don’t allocate anything.) Percentage of Advertisers From France, Spain, and Italy Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only) % of Search Marketing Budget:

62% Of Advertisers Plan To Increase Search Marketing Spend Over The Next 12 Months Question:. In the next 12 months, how does your company plan to change the amount of money it spends on search marketing? (Please select one.) Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only) Percentage of Advertisers From France, Spain, and Italy

Advertisers Focus More On SEO, Compared To Paid Search Question:. Which of the following best describes your search marketing efforts? (Please select one.) Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only) Percentage of Advertisers From France, Spain, and Italy

Advertisers Plan Greater Utilization Of Mobile, Video Search, Paid Per Call In 2007 Question: Which of the following search marketing tactics have you utilized in 2006, and which do you plan to utilize on in 2007? (Please select all that apply) Percentage of Advertisers From France, Spain, and Italy Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only)

Immediate Online Sales, Brand Awareness Are The Top Search Marketing Objectives Question: What are the major objectives of your company’s search marketing efforts? (Please select up to two) Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only) Percentage of Advertisers From France, Spain, and Italy

Competition, Tracking Effectiveness Are Advertisers’ Top Search Marketing Problems Question:. Which of the following problems has your company experienced in relation to your search marketing efforts? (Please select all that apply.) Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only) Percentage of Advertisers From France, Spain, and Italy Continued on next slide

Top Reasons Advertisers Hire Agencies Are To Improve Results And Due To Lack Of Internal Knowledge/Expertise Question:. For which of the following reasons did you hire a search agency? (Select top 2) Source: JupiterResearch SEMPO Survey (01/07) n =49 (advertisers using agency for search marketing services, France, Spain, Italy only) Percentage of Advertisers From France, Spain, and Italy Using Agency For Search Marketing Services

Advertisers Value The Knowledge Their Agency’s Employees Possess Question:. Thinking about the primary agency that handles your search marketing, which of the following statements do you agree with? (Please select all that apply) Source: JupiterResearch SEMPO Survey (01/07) n =49 (advertisers using agency for search marketing services, France, Spain, Italy only) Percentage of Advertisers From France, Spain, and Italy Using Agency For Search Marketing Services Continued on next slide

Advertisers Value The Knowledge Their Agency’s Employees Possess (cont.) Question:. Thinking about the primary agency that handles your search marketing, which of the following statements do you agree with? (Please select all that apply) Source: JupiterResearch SEMPO Survey (01/07) n =49 (advertisers using agency for search marketing services, France, Spain, Italy only) Percentage of Advertisers From France, Spain, and Italy Using Agency For Search Marketing Services Continued from previous slide

SEO Strategy And Paid Search/SEO Implementation Most Commonly Used Agency Services By Advertisers Question:. For which of the following search marketing services do you use an agency? (Please select all that apply.) Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only) Percentage of Advertisers From France, Spain, and Italy

Advertisers Most Prefer Revenue Share Model For Paying Agencies Question:. Given a choice, which of the following search agency payment methods would you prefer? (Please select one) Source: JupiterResearch SEMPO Survey (01/07) n =49 (advertisers using agency for search marketing services, France, Spain, Italy only) Percentage of Advertisers From France, Spain, and Italy Using Agency For Search Marketing Services

Roughly One Third Of Advertisers Don’t Know How Much They Are Paying In Agency/Tool Fees Question: What percentage of your search marketing budget goes towards agency fees and tool fees for each of the following services? (Please select one.) Percentage of Advertisers From France, Spain, and Italy Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only)

26% Of Advertisers Would Consider Using Agency To Improve Results; 61% Satisfied With Keeping Search Marketing In-House Question:. Which of the following reasons might convince you to hire a search agency in the future? (Select top 2) Source: JupiterResearch SEMPO Survey (01/07) n =46 (advertisers not using agency for search marketing services, France, Spain, Italy only) Percentage of Advertisers From France, Spain, and Italy Not Using Agency For Search Marketing Services

Agencies

Agencies Across Spain, France, And Italy Have Similar Search Marketing Spending Levels Question: Approximately how much money did you spend on search marketing on behalf of your clients in the last 12 months? (Please include per-click fees, agency fees, tool fees) (Please select one.) Percentage of Agencies From France, Spain, and Italy Source: JupiterResearch SEMPO Survey (01/07) n =80 (French agencies); n=40 (Spanish agencies); n=70 (Italian agencies)

Competition Has Been Agencies’ Greatest Problem With Search Marketing Efforts Question:. Which of the following problems has your company experienced in relation to your search marketing efforts? (Please select all that apply.) Source: JupiterResearch SEMPO Survey (01/07) n = 190 (agencies, France, Spain, Italy only) Percentage of Agencies From France, Spain, and Italy Continued on next slide

Agencies And Advertisers Are Satisfied With ROI From Search Marketing Activities Question: How satisfied have you been with the return on investment (ROI) you received from your search marketing activities during the last 12 months? (Please select one) Percentage of Agencies/Advertisers From France, Spain, and Italy Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only); n=190 (agencies, France, Spain, Italy only)

The Same Top 3 Strategies Work For Both Agencies And Advertisers Question: Which strategies have had the most positive impact on your search marketing campaigns? (Please select up to three.) Percentage of Agencies/Advertisers From France, Spain, and Italy Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only); n=190 (agencies, France, Spain, Italy only) Integration has had a more positive effect for agencies, compared to advertisers

Survey Respondent Profile

Respondents By Location Advertisers Agency Question: Where are you located? (Please select one.) Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only); n=190 (agencies, France, Spain, Italy only)

Respondents By Annual Revenue Question: Which of the following best describes your company’s annual revenue for 2006? (Please select one.) Percentage of Agencies/Advertisers From France, Spain, and Italy Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only); n=190 (agencies, France, Spain, Italy only)

Respondents By Company Size Question: How many employees does your company have? (Please select one) Percentage of Agencies/Advertisers From France, Spain, and Italy Source: JupiterResearch SEMPO Survey (01/07) n = 95 (advertisers, France, Spain, Italy only); n=190 (agencies, France, Spain, Italy only)

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