02 Pruitt Optimization2008
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02 Pruitt Optimization2008

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  • Traditionally, search has been used strictly for direct marketing – selling boxes. The branding benefits have been an added value thrown in but rarely paid for. With MM ad formats on search results, Google may protest about being seen as a media company, but, the migration of traditional display dollars to search is inevitable. The introduction of multimedia ads will be a real threat to the current dominance of search by DM. At the very least the lines will blur between brand and DM or we’ll see a more severe displacement of DM as a result of higher click costs driven by the budgets available for brand.
  • Traditionally, search has been used strictly for direct marketing – selling boxes. The branding benefits have been an added value thrown in but rarely paid for. With MM ad formats on search results, Google may protest about being seen as a media company, but, the migration of traditional display dollars to search is inevitable. The introduction of multimedia ads will be a real threat to the current dominance of search by DM. At the very least the lines will blur between brand and DM or we’ll see a more severe displacement of DM as a result of higher click costs driven by the budgets available for brand.

02 Pruitt Optimization2008 02 Pruitt Optimization2008 Presentation Transcript

  • Search Engine Marketing (SEM) Trends and The Future of Search in North America Ashmanov and Partners Conference 2008 Jeffrey Pruitt iCrossing Executive Vice President, Search SEMPO President
  • “ Search and Search Engines are the collective consciousness of today’s World giving equal access to anyone, anywhere.”
  • The Gold Rush
  • Level the Playing Field
  • Internet Connection: Anyone, Anywhere at Anytime
  • Equal Opportunity
  • Your Choice
  • Agenda
    • A New Digital Paradigm for Brand Success
    • Search: Past and Present
      • Search Marketing Statistics
    • Search is Evolving
      • Digital Asset Optimization
      • Performance Media
    • Digital Agencies
      • How organize for trends in search
  • Always-on Network
  • Network of Human Beings
  • Brands need a new model to be successful Creating connected brands. Brands must be aware of their world - using their “senses” to understand their environment, especially their customers. Brands must live in their networks, always-on, agile and adaptive – they must participate and engage with their customers. Brands must behave in ways that are authentic, and earn the trust of it’s customer. Brands must contribute to their networks, providing tools and content that are relevant. Aware Active Trusted Useful
  • Agenda
    • A New Digital Paradigm for Brand Success
    • Search: Past, Present & Future
      • Search Marketing Statistics
    • Search is Evolving
      • Digital Asset Optimization
      • Performance Media
    • Digital Agencies
      • How organize for trends in search
  • U.S. Online Advertising Spending Total Dollars in Billions by Format, 2001 - 2012 Source: eMarketer,,US Online Advertising Spending,Report, October 2008 $3.85b (38%) $10.78b (42%) * Projected PAST $19.65b (47%) FUTURE $0.25b (3%)
  • U.S. Online Advertising Spending Year-over-Year Percent (%) Change by Format, 2001 - 2012 Source: eMarketer,,US Online Advertising Spending,Report, October 2008 PAST FUTURE
  • U.S. Advertising Spending Total Dollars in Billions by Media Type, 2001 - 2007 * Internet includes yearly totals for Display, Paid Search and Natural Search Sources: eMarketer,,US Online Advertising Spending, Report, October 2008; TNS Ad Spending by Media Report, 2001 - 2007
  • U.S. Advertising Spending Year-over-Year Percent (%) Change by Media Type, 2001 - 2007 * Internet includes yearly totals for Display, Paid Search and Natural Search Sources: eMarketer,,US Online Advertising Spending, Report, October 2008; TNS Ad Spending by Media Report, 2001 - 2007
  • Annual Advertiser Spend Forecast By Vertical, 2007-2012 Source: Forrester U.S. Interactive Marketing Report, 2008
  • Organic SEO Most Popular of SEM Programs By Advertiser Respondents, 2004-2007 Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers, December 2005. Global Results. Copyright © 2005
  • Top 10 Search Marketing Agencies 2005-2006 Source: Advertising Age DATA Center, Top Search Marketing Agencies Fact Pack, 2006, 2007
    • Rank
    • 2005
    Agency Headquarters SEO/SEM Revenue 2006 2005 Percent Change Number of Employees 1 2 iCrossing New York $63m $46m 37% 350 2 7 Avenue A Seattle $30m $12m 156% 1800 3 5 360i New York $28m $19m 48% 175 4 NA Website Pros Florida $25m NA 22% 700 5 NA DoubleClick/ Performics Chicago $24m NA 58% 242 6 NA Leapfrog Illinois $21m NA NA 85 7 6 Efficient Frontier California $20m $13m 96% 140 8 3 iProspect Boston $16m $23m - 30% 115 9 8 Impaqt Pittsburg $14m $11m 18% 87 10 10 Acronym Media New York $12m $10m 20% 65
  • Current Economic Condition
    • “ 91% are using online advertising , and over one-half (+50%) indicate that their companies plan to maintain or exceed current levels where possible”
    Source: eMarketer, U.S. Online Advertising Spending, Report, October 2008 “ 55% of marketers said they’re cutting expenditures on traditional media , precisely in order to increase funding for online efforts” According to a McKinsey & Co. survey of 340 senior marketing executives worldwide…
  • Current Economic Condition
    • The Internet…
    • Is inherently more measurable and accountable than are traditional channels
    • Allows for better, more-granular targeting
    • Is interactive , thereby allowing for a higher degree of engagement
    • Is accounting for a larger share of total media time
    • Plays into the consumer-in-control movement
    • Provides marketers with the potential to gain rich insights into consumer behavior
    • Allows marketers to reach prospects throughout the entire consumer buying cycle
    • “ In the recession of 2009, marketers will be making cuts almost across the board, and will seek safe harbors and cost efficient alternatives.”
    • - Jack Myers,
    • Media Business Report
    Source: JackMyers Media Business Report, October 13, 2008 What is behind the bullish projections for online ad spending?
  • Agenda
    • A New Digital Paradigm for Brand Success
    • Search: Past and Present
      • Search Marketing Statistics
    • Search is Evolving
      • Digital Asset Optimization
      • Performance Media
    • Digital Agencies
      • How organize for trends in search
  • Digital Asset optimization
  • Platform Content Digital Asset Optimization
  • Google Universal and Ask3D
    • Search engines are now integrating multiple media types in the results pages, including:
      • Video
      • News
      • Blogs
      • Images
      • Maps
  • Google Universal Search and Video Ads
  • Search and Social Impact
  • Brand, Sales, Leads and Traffic Are Top Objects of Paid Placement Programs Among Advertisers Purpose of Search Engine Marketing Use "What is your company using search engine marketing to accomplish?" Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers
  • Methodology: Testing the Brand’s Placement
      • Control
        • (No branding: “Honda” does not appear on the SERP)
      • Side Sponsored
        • Honda appears in side sponsored result only
      • Top Organic
        • Honda appears in top organic result only
      • Top Sponsored
        • Honda appears in top sponsored result only
      • Top Sponsored and Top Organic
        • Honda appears in both top Sponsored and top organic results
      • Subjects entered an unbranded query and saw one of the following search engine results pages (SERP):
    Source: Enquiro Search Solutions, Inc., July 2007.
  • A 2.2x Lift in Aided Brand Recall When Brand Is in Top Sponsored and Top Organic Results Which of the following brands do you remember seeing in the search results page you just viewed? Side Sponsored Top Sponsored Top Sponsored & Top Organic Top Organic Listing Test Brand Other 0% 10% 20% 30% 40% 50% 60% 70% Source: Enquiro Search Solutions, Inc., July 2007. Query: Unbranded (i.e., “fuel efficient cars”) 2.2x 1.5x x
  • Performance Media
  • Advertising Platforms
    • Ad Platforms include: Panama, Google Adwords, AdCenter
    • The digitization of all content will lead to new advertising methods across multiple forms of content.
    • Advertising platforms will be utilized to manage cross channel campaigns “Performance Media”
  • One Stop Shop Ad Platform Centralized Search Driven Media
  • Buying Search and Contextual Ads (past) Media Buyer
  • Buying Search and Contextual Ads (present) API Bid Management Tool Media Buyer API API
    • Examples:
    • - Blondinka.ru
    • - SmartContext.ru
    • - iCrossing’s
    • Merchantize
  • Buying Display Ads (today) Media Buyer Ad Network
  • Buying Display Ads is about to get easier! API 3rd Party Ad Management & Serving Tool Yahoo - RightMedia API Google - Doubleclick Network API Microsoft - AdECN Networks, Exchanges and APIs Media Buyer
  • + API Cross Media Bid/Buy Tool Media Buyer API API 3rd Party Ad Management & Serving Tool Bid Management API API Ad Exchanges = Radio TV Print Display Video Exchanges Search Performance Media Buying Search, Contextual, Display Ads & Video
  • One Stop Shop for all Search Driven Media Ad Networks | Ad exchanges API’s Bid Management System
  • Convergence of Search and Display
  • Convergence of Search and Display Performance Media (CPA/CPC) Search Display Site Targeting Contextual Exchanges PAST Branding (impressions/CPM) Performance Branding NOW
  • Credit Band of Moscow: Convergence of Search and Display
  • Credit Band of Moscow: Convergence of Search and Display
  • Case Study: Dove ®
  • DOVE Campaign Assets Click to Play Video Flash Banner Text Ad Source: comScore / Nielsen NetRatings ®
  • DOVE Nielsen//NetRatings: Sales Impact
    • 96% new buyers entered the Total Brand
    • +25% more dollars spent on the Total Brand
    • Incremental dollar impact to the Total Brand was significant, (for every $1.00 invested with Google, consumers spent an incremental $1.43)
    $ $ $ Source: comScore / Nielsen NetRatings ®
  • Agenda
    • A New Digital Paradigm for Brand Success
    • Search: Past and Present
      • Search Marketing Statistics
    • Search is Evolving
      • Digital Asset Optimization
      • Performance Media
    • Digital Agencies
      • How organize for trends in search
  • Program Management Research Experience Planning Optimize Advertise Integrating the digitization of all content PROGRAM MANAGEMENT
  • Digital Agency Strategic Model
  • Multi-Channel Reporting
  • Multi-Channel Conversion Funnel
  • “ The digitization of all content will lead to new advertising methods across multiple forms of content. As the Engines develop these new products and media types, it is imperative that Search Engine Marketers stay in lock step with the engines in our technology integration and service line expansion ”
  • Jeffrey Pruitt Executive Vice President, iCrossing President, Search Engine Marketing Professional Organization (SEMPO) 1.480.505.5807 direct 1.602.430.0640 mobile [email_address] Thank you iCrossing www.icrossing.com SEMPO www.sempo.org