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Search Engine Marketing (SEM) Trends and  The Future of Search in North America Ashmanov and Partners Conference  2008 Jef...
“ 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 <ul><li>A New Digital Paradigm for Brand Success </li></ul><ul><li>Search: Past and Present </li></ul><ul><ul><li>S...
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 “s...
Agenda <ul><li>A New Digital Paradigm for Brand Success </li></ul><ul><li>Search: Past, Present & Future </li></ul><ul><ul...
U.S. Online Advertising Spending Total Dollars in Billions by Format, 2001 - 2012 Source: eMarketer,,US Online Advertising...
U.S. Online Advertising Spending Year-over-Year Percent (%) Change by Format, 2001 - 2012 Source: eMarketer,,US Online Adv...
U.S. Advertising Spending Total Dollars in Billions by Media Type, 2001 - 2007 * Internet includes yearly totals for Displ...
U.S. Advertising Spending Year-over-Year Percent (%) Change by Media Type, 2001 - 2007 * Internet includes yearly totals f...
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...
Top 10 Search Marketing Agencies 2005-2006 Source: Advertising Age DATA Center, Top Search Marketing Agencies Fact Pack, 2...
Current Economic Condition <ul><li>“ 91% are using online advertising , and over one-half (+50%) indicate that their compa...
Current Economic Condition <ul><li>The Internet… </li></ul><ul><li>Is inherently more measurable  and accountable than are...
Agenda <ul><li>A New Digital Paradigm for Brand Success </li></ul><ul><li>Search: Past and Present </li></ul><ul><ul><li>S...
Digital Asset optimization
Platform Content Digital Asset Optimization
Google Universal and Ask3D <ul><li>Search engines are now integrating multiple media types in the results pages, including...
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 Mark...
Methodology:  Testing the Brand’s Placement <ul><ul><li>Control </li></ul></ul><ul><ul><ul><li>(No branding: “Honda” does ...
A 2.2x Lift in Aided Brand Recall When Brand Is in Top Sponsored and Top Organic Results Which of the following brands do ...
Performance Media
Advertising Platforms <ul><li>Ad Platforms include: Panama, Google Adwords, AdCenter </li></ul><ul><li>The digitization of...
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 <ul><li>Examples: </li></ul><ul><l...
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 - Doub...
+ API Cross  Media Bid/Buy Tool Media Buyer API API 3rd Party Ad Management & Serving Tool Bid Management API API Ad Excha...
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 Bra...
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 <ul><li>96%  new buyers entered the Total Brand </li></ul><ul><li>+25%  more doll...
Agenda <ul><li>A New Digital Paradigm for Brand Success </li></ul><ul><li>Search: Past and Present </li></ul><ul><ul><li>S...
Program Management Research Experience Planning Optimize Advertise Integrating the digitization of  all  content PROGRAM M...
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 d...
Jeffrey Pruitt Executive Vice President, iCrossing President, Search Engine Marketing Professional Organization (SEMPO) 1....
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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.
  • Transcript of "02 Pruitt Optimization2008"

    1. 1. 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
    2. 2. “ Search and Search Engines are the collective consciousness of today’s World giving equal access to anyone, anywhere.”
    3. 3. The Gold Rush
    4. 4. Level the Playing Field
    5. 5. Internet Connection: Anyone, Anywhere at Anytime
    6. 6. Equal Opportunity
    7. 7. Your Choice
    8. 8. Agenda <ul><li>A New Digital Paradigm for Brand Success </li></ul><ul><li>Search: Past and Present </li></ul><ul><ul><li>Search Marketing Statistics </li></ul></ul><ul><li>Search is Evolving </li></ul><ul><ul><li>Digital Asset Optimization </li></ul></ul><ul><ul><li>Performance Media </li></ul></ul><ul><li>Digital Agencies </li></ul><ul><ul><li>How organize for trends in search </li></ul></ul>
    9. 9. Always-on Network
    10. 10. Network of Human Beings
    11. 11. 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
    12. 12. Agenda <ul><li>A New Digital Paradigm for Brand Success </li></ul><ul><li>Search: Past, Present & Future </li></ul><ul><ul><li>Search Marketing Statistics </li></ul></ul><ul><li>Search is Evolving </li></ul><ul><ul><li>Digital Asset Optimization </li></ul></ul><ul><ul><li>Performance Media </li></ul></ul><ul><li>Digital Agencies </li></ul><ul><ul><li>How organize for trends in search </li></ul></ul>
    13. 13. 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%)
    14. 14. 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
    15. 15. 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
    16. 16. 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
    17. 17. Annual Advertiser Spend Forecast By Vertical, 2007-2012 Source: Forrester U.S. Interactive Marketing Report, 2008
    18. 18. 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
    19. 19. Top 10 Search Marketing Agencies 2005-2006 Source: Advertising Age DATA Center, Top Search Marketing Agencies Fact Pack, 2006, 2007 <ul><li>Rank </li></ul><ul><li>2005 </li></ul>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
    20. 20. Current Economic Condition <ul><li>“ 91% are using online advertising , and over one-half (+50%) indicate that their companies plan to maintain or exceed current levels where possible” </li></ul>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…
    21. 21. Current Economic Condition <ul><li>The Internet… </li></ul><ul><li>Is inherently more measurable and accountable than are traditional channels </li></ul><ul><li>Allows for better, more-granular targeting </li></ul><ul><li>Is interactive , thereby allowing for a higher degree of engagement </li></ul><ul><li>Is accounting for a larger share of total media time </li></ul><ul><li>Plays into the consumer-in-control movement </li></ul><ul><li>Provides marketers with the potential to gain rich insights into consumer behavior </li></ul><ul><li>Allows marketers to reach prospects throughout the entire consumer buying cycle </li></ul><ul><li>“ In the recession of 2009, marketers will be making cuts almost across the board, and will seek safe harbors and cost efficient alternatives.” </li></ul><ul><li>- Jack Myers, </li></ul><ul><li>Media Business Report </li></ul>Source: JackMyers Media Business Report, October 13, 2008 What is behind the bullish projections for online ad spending?
    22. 22. Agenda <ul><li>A New Digital Paradigm for Brand Success </li></ul><ul><li>Search: Past and Present </li></ul><ul><ul><li>Search Marketing Statistics </li></ul></ul><ul><li>Search is Evolving </li></ul><ul><ul><li>Digital Asset Optimization </li></ul></ul><ul><ul><li>Performance Media </li></ul></ul><ul><li>Digital Agencies </li></ul><ul><ul><li>How organize for trends in search </li></ul></ul>
    23. 23. Digital Asset optimization
    24. 24. Platform Content Digital Asset Optimization
    25. 25. Google Universal and Ask3D <ul><li>Search engines are now integrating multiple media types in the results pages, including: </li></ul><ul><ul><li>Video </li></ul></ul><ul><ul><li>News </li></ul></ul><ul><ul><li>Blogs </li></ul></ul><ul><ul><li>Images </li></ul></ul><ul><ul><li>Maps </li></ul></ul>
    26. 26. Google Universal Search and Video Ads
    27. 27. Search and Social Impact
    28. 28. Brand, Sales, Leads and Traffic Are Top Objects of Paid Placement Programs Among Advertisers Purpose of Search Engine Marketing Use &quot;What is your company using search engine marketing to accomplish?&quot; Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers
    29. 29. Methodology: Testing the Brand’s Placement <ul><ul><li>Control </li></ul></ul><ul><ul><ul><li>(No branding: “Honda” does not appear on the SERP) </li></ul></ul></ul><ul><ul><li>Side Sponsored </li></ul></ul><ul><ul><ul><li>Honda appears in side sponsored result only </li></ul></ul></ul><ul><ul><li>Top Organic </li></ul></ul><ul><ul><ul><li>Honda appears in top organic result only </li></ul></ul></ul><ul><ul><li>Top Sponsored </li></ul></ul><ul><ul><ul><li>Honda appears in top sponsored result only </li></ul></ul></ul><ul><ul><li>Top Sponsored and Top Organic </li></ul></ul><ul><ul><ul><li>Honda appears in both top Sponsored and top organic results </li></ul></ul></ul><ul><ul><li>Subjects entered an unbranded query and saw one of the following search engine results pages (SERP): </li></ul></ul>Source: Enquiro Search Solutions, Inc., July 2007.
    30. 30. 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
    31. 31. Performance Media
    32. 32. Advertising Platforms <ul><li>Ad Platforms include: Panama, Google Adwords, AdCenter </li></ul><ul><li>The digitization of all content will lead to new advertising methods across multiple forms of content. </li></ul><ul><li>Advertising platforms will be utilized to manage cross channel campaigns “Performance Media” </li></ul>
    33. 33. One Stop Shop Ad Platform Centralized Search Driven Media
    34. 34. Buying Search and Contextual Ads (past) Media Buyer
    35. 35. Buying Search and Contextual Ads (present) API Bid Management Tool Media Buyer API API <ul><li>Examples: </li></ul><ul><li>- Blondinka.ru </li></ul><ul><li>- SmartContext.ru </li></ul><ul><li>- iCrossing’s </li></ul><ul><li>Merchantize </li></ul>
    36. 36. Buying Display Ads (today) Media Buyer Ad Network
    37. 37. 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
    38. 38. + 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
    39. 39. One Stop Shop for all Search Driven Media Ad Networks | Ad exchanges API’s Bid Management System
    40. 40. Convergence of Search and Display
    41. 41. Convergence of Search and Display Performance Media (CPA/CPC) Search Display Site Targeting Contextual Exchanges PAST Branding (impressions/CPM) Performance Branding NOW
    42. 42. Credit Band of Moscow: Convergence of Search and Display
    43. 43. Credit Band of Moscow: Convergence of Search and Display
    44. 44. Case Study: Dove ®
    45. 45. DOVE Campaign Assets Click to Play Video Flash Banner Text Ad Source: comScore / Nielsen NetRatings ®
    46. 46. DOVE Nielsen//NetRatings: Sales Impact <ul><li>96% new buyers entered the Total Brand </li></ul><ul><li>+25% more dollars spent on the Total Brand </li></ul><ul><li>Incremental dollar impact to the Total Brand was significant, (for every $1.00 invested with Google, consumers spent an incremental $1.43) </li></ul>$ $ $ Source: comScore / Nielsen NetRatings ®
    47. 47. Agenda <ul><li>A New Digital Paradigm for Brand Success </li></ul><ul><li>Search: Past and Present </li></ul><ul><ul><li>Search Marketing Statistics </li></ul></ul><ul><li>Search is Evolving </li></ul><ul><ul><li>Digital Asset Optimization </li></ul></ul><ul><ul><li>Performance Media </li></ul></ul><ul><li>Digital Agencies </li></ul><ul><ul><li>How organize for trends in search </li></ul></ul>
    48. 48. Program Management Research Experience Planning Optimize Advertise Integrating the digitization of all content PROGRAM MANAGEMENT
    49. 49. Digital Agency Strategic Model
    50. 50. Multi-Channel Reporting
    51. 51. Multi-Channel Conversion Funnel
    52. 52. “ 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 ”
    53. 53. 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
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