The Latest Trends in
Internet Marketing 2007

Panelist Introductions
• Andy King, founder, Website Optimization
& author “Speed Up Your Site”
• Daniel O'Neil, Alchemist & Lead Analyst,
Pure Visibility
• Abbey Beardslee, Sale Planner,
MySpace.com/FOX Interactive

Search Engine Marketing
Trends - The Shift to SEO
Andy King
websiteoptimization.com

SEM to nearly double by 2011

Why more SEM?
Advertising budgets shifting to Net
•
PPC prices rising (Google auto-pilot)
•
More measurable metrics
•
TV, radio, newspapers, yellow pages down
•
More companies entering the market
•

Shift from offline to online marketing

Shift from Traditional to New Media

Shift from PPC to SEO
• PPC/SEO from 2.4 to 1.1 from 2007 to 2012
• PPC costs rising
– ~6 times $1+ keywords in Jan. 2007 vs. Jan.
2006
– Ave CPK rose 33% each month in Q1 2006
– Ave CPC rose 55%/month Jan. 2006 to Jan. 2007
DoubleClick, “DoubleClick Performics 50 – Search Trend Report Q1 2007,”
(New York: DoubleClick Inc., June 2007), 1, http://www.doubleclick.com/insight/research
(Nov. 17, 2007).

PPC Costs Rising Over Time
“DoubleClick Performics, “Q1 2007 Search Trends Report,” (DoubleClick, 2007), 2.
http://www.doubleclick.com/insight/pdfs/DoubleclickPerformics50_Q1_2007.pdf.

How to boost ROI?
Make ad spend more efficient
•
Optimize PPC campaigns
•
Long term SEO equal to PPC (trend)
•
Optimize everything with web metrics
•
Optimize conversion rates
•
– Web site optimizer (Google)
– A/B/C split testing
– Test, try, and retest

Search ROI vs. Other Tactics

Measuring Metrics
• 43% of marketers don’t/can’t accurately
measure ROI from SEO (Jupitermedia, 2007)
• Only 6-15% of companies are fully
integrated (eMarketer, 2007)
• Basic metrics most used (traffic,impressions)

Web Metrics Integration

Measuring SEM Firms
Amount of Web Traffic (58%)
•
Total sales (50%)
•
ROI from search marketing (49%)
•
Search engine ranking (48%)
•
Number of clicks (43%)
•
Return on advertising spend (42%)
•
Jupiter Research SEM Executive Survey, 2/07

Measuring Meta Tag Usage

Meta tag trends
• Keywords (34.2%) description (31.8%)
used most
• Title, metadata Title, Subject, and Description
fields most important for SEO rankings
• 7.4% use Dublin core, less effective for SEO
• Only 1.7% use metadata Title, yet impacts SEO
Zhang, J., and I. Jastram, “A study of the metadata creation behavior of different user groups on the Internet,” Information
Processing and Management 42 (2006): 1099–1122.
Zhang, J., and A. Dimitroff, “The impact of webpage content characteristics on the webpage visibility in search engine results
(Part I),” Information Processing & Management 41 (2005): 665–690.
Zhang, J., and A. Dimitroff, “The impact of metadata implementation on the webpage visibility in search engine results
(Part II),” Information Processing & Management 41 (2005): 691–715.

Search Query Trends
Bogatin, D., “Yahoo: ‘Searches more sophisticated and specific,’” (San Francisco: CNET Networks, Inc., May 18, 2006).
http://blogs.zdnet.com/micro-markets/index.php?p=27 (July 17, 2007).
Pasca, M., “Organizing and Searching the World Wide Web of Facts - Step Two: Harnessing the Wisdom of the Crowds,” WWW 2007,
(Banff, Alberta, Canada, May 8–12, 2007): 101-110. Google statistics.
Oneupweb, “How Keyword Length Affects Conversion Rates,” (Oneupweb, 2005). (accessed June 15, 2007).

How to boost SEO rankings?
Fully optimize Title tags (up to 3 keywords)
•
Build backlinks baby
•
Build PageRank (see #2)
•
Use Web 2.0/Social Media
•
Fresh keyword-optimized content
•
Stay out of Google “sandbox”
•
Longer to reach top rankings 6 -> 12 months
•

Spread of news in Blogistan
• Takes about 1 week for the average
story to peak in links in the “blogistan”
• Staged release may be more effective
• Blogs and RSS feeds are powerful for
backlinks
• Press releases guarantee links
Cohen, E., and B. Krishnamurthy, “A short walk in the
Blogistan,” Computer Networks 50 (2006): 615–630.

SEM Resources
MarketingSherpa.com - research firm
•
SEMPO.org - SEM industry professionals
•
eMetrics.org - marketing conferences
•
FutureNowInc.com -conversion rate optimization
•
SEOMoz.org - ranking factors survey
•
SearchEngineLand.com - Danny Sullivan
•
WebsiteOptimization.com/presentations
•

Metrics for the Masses -
How improved metrics will redefine
what we sell and how we sell it!
Daniel O’Neil
Pure Visibility Inc.

Metrics and Marketing have
been uneasy bedfellows
“I know half of my advertising is wasted; I just
don’t know which half.”
-- John Wannamaker, ca 1910
“The time has come when advertising in some
hands has reached the status of science.”
-- Claude Hopkins, 1923
85 years later...

Market Measurement has grown
explosively thanks to Google Analytics
A free tool that allows detailed traffic profiles
•
at a level of quality second only to high-cost
products like Omniture’s SiteCatalyst or
WebTrends
Business-oriented data, not geek-oriented data
•
Can be used to to make non-intrusive inquiries
•
into your clients and visitors’ needs.

The short-term trend: analytics
will be as common as Outlook
Terms that are becoming more and more common:
•
– ROI
– Cost per Lead
– Cost per Conversion
– Sales Funnel considerations
– “Stickiness”
Web marketers that don’t promise metrics -- and
•
the ability to explain metrics -- will not do as well
as those who do.

The long-term trend: Analytics will be used
to create sustained, detailed user profiles
Company
Product Line Books, some Media DVD Media, some Movie Consumer Goods
(Deep) Downloads (Deep) (Broad, Deep)
Business Model Brick and Mortar Online Subscription Online Commodity
Commodity Purchase Service Purchase
Knowledge of Customer Low High High
Preference
Degree of Customer Low High Medium
Feedback
Number of Customer Very Low High Medium - High
actions captured
Length of Transactional 0-1 ongoing, changes daily per login/purchase or
history and weekly browse

How will the business model change?
• Increasingly commodities become monetized through
services. The Amazon and Netflix web properties are services
that contribute to the sale of commodities.
- Amazon’s customer retention in 2002 was 60%;
in 2004 it was 78%.
• Increase in measurable “Micropurchase” business models
– Subscriptions and Serials
– Tracked sampling offerings and price-reduced to get data
– Attribute bundling (enrich what a product is by adding
reviews, friend recommendation, etc.)

These ideas are not new, but
they have been slow to grow.
Netflix’ model has been mature since about 2003;
•
Amazon’s model continues to evolve, but reached
Netflix’ standard around 2005-2006. Then they
surpassed it!
Traditional merchandising companies have been slow
•
to catch up because in order to make it work, a
measurable, superior SERVICE has to be the core goal
of any website.
It doesn’t have to be “High Tech”, but the vision has
•
to be clearly defined and supported by the
organization
-The Ann Arbor District Library gets it, but Target doesn’t!

Resources and links
http://www.purevisibility.com
http://recsys.acm.org/program.html
http://analytics.google.com
http://www.aadl.org
Competing on Analytics: The New Science of Winning.
Davenport, Thomas H.; Harris, Jeanne G.

Branding and Positioning –
Be Something No One Else Is
Abbey Beardslee, Sale Planner,
MySpace.com/FOX Interactive

What Is MySpace?
OUR CORE VALUE
PROPOSITION:
MySpace is the most
effective platform to
reach the youth market,
offering unparalleled
reach and composition
among trend-setting
young adults.

How We’ve Grown…
In just 3 years, MySpace has
achieved portal-sized reach…
– 71 MILLION MONTHLY USERS¹
We’ve become the premier
destination for young adults…
– 26 MILLION 18-34 YEAR OLDS
We’ve developed the highest
composition of 18-34 year olds
of all broad reach sites…
– 37% COMPOSITION
We provide both scale and coverage
of the trend-setting young adult
audience
Source: ¹comScore Media Metrix, June 2007, US

MySpace is Home for Social Networking Users
SOCIAL NETWORKING
STARTS HERE… 62% of the Facebook
60% of the YouTube
audience visits MySpace
audience visits MySpace
• 68.4 million monthly users
• 82% of members are 18+
• 38% reach of the US online population
• 45.2 billion page views per month
• 14.2 billion total minutes per month
• Average of 207.3 minutes per user per month
68,392,000
• 58% of Social Networking market share
• 24.8 average visits per visitor
• 43% reach against all adults 18-34
58% of the LinkedIn
• 37% reach against HH Income 75k+ audience visits MySpace
* Duplication between Social Networking sites not shown
Source: comScore Media Metrix, US data – August 2007

The Most Efficient Way To
Reach 18-34 Year Olds Online
REACH, COMPOSITION AND CONSUMPTION AMONG 18-34 YEAR OLDS
REACH
Unique Visitors (000)
HIGH-REACH, HIGH COMP
HIGH-REACH, LOW COMP
Size of bubble
indicates page COMPOSITION
views (MM) Percent
LOW REACH, LOW COMP LOW REACH, HIGH COMP
.
.
. .

The Momentum Effect In Action:
Smart Media + Brand Community = Momentum
MYSPACE MEDIA AND MOMENTUM DRIVES
6-15X THE IMPACT OF OTHER ONLINE MEDIA
MySpace Campaign: EA Burnout Band Slam 2 Results: Momentum-Driven ROI*
\"Definitely Will Purchase\"
ROI:
350,000
People Impacted Per $100,000 Spent
Extraordinary
300,000
250,000
200,000
15X
150,000
100,000
6X
50,000
0
• EA launched an international band competition to Online Advertising MySpace Advertising
promote a video game release plus Momentum Effect
• Winning band’s music is featured in Burn Out Game Momentum Effect
plus a Virgin Record Label
Advertising Effect
• The brand community encouraged viral pass-along
by allowing users to forward content to friends
*** Close to 7,000 contest submissions!!
• Standard media was also utilized to drive contest
awareness and traffic to community
Source: 1NEF study, April 2007, commissioned by MySpace, Isobar and Carat

MySpace Media Is Smart And Effective
HIGHLY TARGETED
MYSPACE MEDIA BENEFITS:
• High-reach—The most efficient way
to reach 18-34 year olds online HYPER
TARGETING
• Highly effective—MySpace media
drives brand awareness
ENTHUSIAST
• High value—Cost-effective relative TARGETING
to all broad-reach competitors
PREMIUM CONTENT
• Highly targeted—Segment users
based on freely expressed passions
USER HOMEPAGE
MYSPACE HOME PAGE
HIGH REACH

VIDEO - Competitive Landscape
Poised for explosive growth, MySpaceTV will be a market-leading video
destination.
This Chart compares “total unique video viewers”
YouTube MySpace Yahoo! AOL MSN
Total Unique Viewers (000) 62,206 47,985 35,024 29,479 24,394
Videos (000) 1,715,068 635,036 386,724 184,722 171,155
Videos per Viewer 27.6 13.2 11.0 6.3 7.0
Viewer Penetration 47.2 36.4 26.6 22.3 18.5
Share of Videos 20.5% 7.6% 4.6% 2.2% 2.0%
Minutes per Viewer 68.0 17.3 30.1 15.4 17.8

Thank you!
Abbey Beardslee
abeardslee@myspace.com

Next Month: 12.11.07
Smart Spending - How to Measure the Return on
Your Marketing Investment
Moderator: Debra Power, Power Marketing
Panelists:
• Archie Sader, Integrated Marketing
Communications, EMU
• Jon Boyd, The Home Buyer's Agent of Ann
Arbor
• David Bloom, Optimization Group