Search Kicks Display in Effectiveness by Augustine Fou PhD

Search KicksDisplay inEffectiveness Dr. Augustine Fou @acfou http://linkedin.com/in/augustinefou Marketing Science Consulting Group, Inc.

If users can’t see the ads... “about half are never in view” “quality problem in long-tail content sites” … no wonder click rates suck.April 13, 2012 2

If users don’t look... Source: Banner Blindness “The ads to the right are only noticed by 23% of the respondents, and they spend only half a second on the ads.” Source: Mashable 12/29/2011 … even “branding” doesn’t happen.April 13, 2012 3

Facebook robs advertisers... 2012 1 2011 2 2010 3 4 5 6 7 4 8 Source: Facebook Display Ads | go-Digital Blog 9 …by increasing number of ads per pageview.April 11, 2012 4

Why is search so much better? Display Ads Search Ads Ads next to content Ads based on what the the user wants to user is looking for read – email, scores, (keyword) at the exact news, content, etc. moment in time.April 13, 2012 5

Search CTR is always better Search CTR: 0.19% Display CTR: 0.05% Search CTR: 0.25% Display CTR: 0.03% Search CTR: 0.13% Display CTR: 0.07% Search CTR: 0.24% Display CTR: 0.07% Source: Search versus Display | go-Digital BlogApril 13, 2012 6

Search CTR is always better • Local Search CTR is more than 10x better than Local Display • Secondary-Action for search is more than 7x better than display Source: xAd, Feb 2012April 13, 2012 7

Visitors from search… Visitors from paid online advertising mostly “bounce” (leave immediately) and didn’t stay long enough to do anything (15 seconds) Visitors from search stayed the longest, viewed the most pages, and had the lowest bounce rate Source: Google Analytics Sample CPG client … are way more valuable.April 13, 2012 8

Search is more efficient... Pay for impressions Pay for clicks … pay only for results (clicks).April 13, 2012 9

From Display to Search 1996 2000 2004 2008 2011 $267 million $8.2 billion $9.6 billion $23 billion $31 billion 100% banner ads 40% display 40% search 45% search 47% search 31% sponsorships 39% display 33% display 35% display 10% classifieds 18% other 14% other 17% other Source: IAB March 1997 Source: IAB April 2001 Source: IAB April 2005 Source: IAB March 2009 Source: IAB March 2009 http://bit.ly/JKwCJ1 http://bit.ly/MA9FIh http://bit.ly/LlB6zY http://bit.ly/LuiZhD http://bit.ly/JK2lIu crossoverApril 13, 2012 10

From CPM to CPC Advertisers are getting smarter; they only want to pay when they get the click, not just for the impressions any more. Source: PwC/IAB April 2011July 31, 2012 11

CPM-based Ad Revenue Display Ads AOL (AOL) Yahoo (YHOO)July 31, 2012 12

CPC-based Ad Revenue Search Ads Baidu (BIDU) Google (GOOG)July 31, 2012 13

So what? “Use search ads whenever possible. If you must use display ads, make sure to only pay by CPC (cost per click) because there’s no way to even know if users saw a display ad.” - Dr. Augustine Fou Display Ads Search AdsApril 13, 2012 14

Dr. Augustine Fou – Chief Digital Strategist Dr. Augustine Fou is an industry-recognized thought leader in digital strategy, search and social media marketing and former Group Chief Digital Officer of Omnicoms Healthcare Consultancy Group. Dr. Fou has over 16 years of management consulting and digital strategy consulting experience, advising CMOs, marketing executives, and global brands. He pioneered the application of the Unified Marketing™ framework to optimize marketing across both traditional and digital channels and tactics. FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT 95) AT AGE 23 ClickZ Articles: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefouApril 13, 2012 15 acfou@mktsci.com

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Search Kicks Display in Effectiveness by Augustine Fou PhD

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