Emakina Academy 5 - Know your audience - Extenseo

Search Engine Marketing (SEM) 10/13/2006

Online Population is Searching Source: Jupiter/The NPD Group Inc., June 2003 • Search is the #2 activity on the web, behind email • 79% of web users use search to navigate the web

Search Engine Marketing (SEM): Definition Search Term Advertising Natural Search Results Art and Science of increasing a web site's visibility in search engines for a targeted list of keywords and phrases

Power of Top Results About 50% of web users review only the first page of search results! Source: iProspect, Brand Survey 2, November 2002

SEM Advantages • Non intrusive e-marketing strategy • Being found & increase traffic (up to 40%) • Appear above your competitors • Very low acquisition cost • New qualified visitors 365 days a year • Highly targeted traffic (highest conversion rate!) • Best weapon for Sales & Lead Generation! Source: Nielsen E-commerce Report, May 2003 (NB: Tiles = buttons)

How do customers find products to buy? SEARCH is #1

SEM is highly profitable! Source: U.S. Bancorp Piper Jaffray, New Methods in Search Marketing, June 2004

Search Now the Largest Share of Online Ads % Online Advertising Growth of Search: Revenue Marketers are voting 100% Other 6% with their dollars Rich Media 8% 9% • Search now the most Sponsorships 80% dominant form of online 17% Classifieds advertising 60% • Nearly 3x growth in since Banners 20% start of 2003 40% • 35 searches per user per month in U.S. Search 40% 20% • 73% search penetration 0% Type of Online Media Source: PWC/IAB USA Internet Advertising Revenue Report, September 2004

Search Engines Getting Bigger and Bigger... It becomes more and more tricky to appear on top of their results. Reported Size Search Engine (indexed pages) Google 8,1 Billion MSN 5,0 Billion 4,2 Billion Yahoo! (estimate) Ask Jeeves 2,5 Billion Source: SearchEngineWatch.com, November 2004

Google is #1 in search in Belgium Second largest site of Belgium 1.9 million unique users and a reach of 66,6% Source: ComScore Media Metrix, Dec 2004 Source: Media Metrix 2.0 Legend, June 2004

Where do surfers look at in Google results? Organic Ranking Visibility Rank 1 100% Rank 2 100% Rank 3 100% Rank 4 85% Rank 5 60% Side Sponsored Rank 6 50% Ad Visibility Rank 1 50% Rank 7 50% Rank 2 40% Rank 8 30% Rank 3 30% Rank 9 30% Rank 4 20% Rank 10 20% Rank 5 10% Rank 6 10% Rank 7 10% Rank 8 10% Source: Did-it, Enquiro and Eyetools, March 2005

Most people use 2 word phrases! Of all the search phrases world wide, about 33% of the people use 2 word phrases in search engines. 1. 2 word phrases 32,58% 2. 3 word phrases 25,61% 3. 1 word phrase 19,02% 4. 4 word phrases 12,83% 5. 5 word phrases 5,64% Source: OneStat.com, February 2004

Extenseo is: • Pioneer (since 1998) • A Subsidiary of Belgacom Skynet (since 01/2006) • 100% focused on Search Engine Marketing: – Search Engine Optimization (SEO) – Search Engine Advertising (SEA) – Conversion & ROI Analysis • A team of 12 Professional Consultants • ROI-Minded, focused on Sales & Lead Generation • Market Leader in terms of: – Turnover and Market Shares – Technology – Experience and Knowledge • Innovating and Reactive (strong quot;R&Dquot; pole) • Some References:

Extenseo: an Active Company! • Active member of: International Search Engine Marketing Professional Organization • Partnerships, Labels & Certifications: eTic Company #154 2 Extenseo specialists have obtained the Selected by MSN 'Google Advertising Professional' certification. as privileged partner • Most Recent Publications: 'Search Engine Marketing' White Paper 'Search Engine Marketing' Code of Ethics in collaboration with MSN and Best Of Publishing. October 2005 May 2005 - 88 pages • Latest Speaking Opportunities: – The Reference (Ghent): 'Search and Measure' Seminar (04/2005) – Solvay Business School (Brussels): Training (05/2005) – ‘Web Analytics Day’ Seminar (Brussels) (10/2005) – Jupiter ’Search Engine Strategies' Seminar (Paris) (11/2005) – FeWeb Congres (Antwerpen) (12/2005)

SEM Strategies 1. SEARCH ENGINE 2. SEARCH ENGINE OPTIMIZATION (SEO) ADVERTISING (SEA) Search Engine Optimization (SEO) Search Engine Advertising (SEA) - Lowest acquisition cost - Quick Setup Advantages - Long Term Strategy - Perfect for Generic Keywords - Perfect for search terms - Perfect for Punctual/Promo Actions composed of 2 or 3 words - Reach a lot of search engines Disadvantages - Takes 2-3 months to go live - Some keywords might be expensive - Limited when too much competition - Time consuming - Might capture less traffic than SEO

SEO recognized as more profitable than SEA Source: JupiterResearch Executive Survey, August 2005 (US Search Marketers only)

SEA (mini-)Case Study: Coradirect.be 10/13/2006

Situation During the 2nd Quarter of 2006, Cora planned to launch ‘Coradirect.be’, a web site aiming to sell top-of-the-range electro-domestic products. This e-commerce site has a particular way of working: • The client selects one of the special promotion products and requests Coradirect’s best price offer. • His/her Cora retailer informs him/her of the unbeatable price, product availability and the delivery period of the selection. • The client has then to confirm his/her reservation and makes an appointment to pickup the order at the Cora store of his/her choice. Emakina, their web agency, contacted Extenseo (Emakina SEM partner) to see how to best promote this atypical website and quickly generate sales.

Challenges Coradirect.be was looking for immediate results as soon as the website would be launched. Available resources (time and budget) were very limited... The e-shop would only allow in the test phase to book and pickup products in the Cora store of Woluwe (Brussels).

Solution • Search Engine Advertising (SEA) has directly be selected as this strategy is perfect for: – quick campaign launch – low involvement from the client – easy budget control • Google AdWords has of course been chosen as advertising network as it: – covers 90-95% of the search engine traffic in Belgium – allows Geotargeting on a regional level

Results, ROI & Findings Avg. Conversion Cost / Month Impressions Clicks CTR Avg. CPC Cost Transactions Position Rate Transaction May 2006 169.688 4.593 2,70% €0,07 €331,55 4,5 65 1,42% €5,10 Jun 2006 183.660 5.210 2,80% €0,04 €210,22 5,1 68 1,31% €3,09 Jul 2006 162.043 4.757 2,90% €0,04 €197,07 5,1 44 0,92% €4,48 Aug 2006 168.099 4.700 2,80% €0,04 €188,50 5,2 70 1,49% €2,69 Sep 2006 163.113 4.021 2,50% €0,04 €166,64 5,5 27 0,67% €6,17 Totals 846.603 23.281 2,70% €0,05 €1.093,98 5,1 274 1,18% €3,99 • Even with a maximum cost-per-click of 0,05 EUR in a highly competitive sector: – the position was ‘good’ (avg. position 5,1) – the click-through (2,7%) can be considered as ‘very good’ (for such positions). • For a media budget of 1.093,98 EUR spent on Google AdWords, the 5-months campaign generated: – 23.281 qualified visitors (= 0,05 EUR per visitor) – 274 highly qualified leads (= 3,99 EUR per lead) Which other strategy can generate such results for about 1.000 EUR media budget?!?

SEM (SEO+SEA) Case Study: Ethias.be 10/13/2006

Situation Ethias Bank & Insurance is the 2nd insurer in Belgium, with more than 1.000.000 customers. In 2005, more than 1.000.000 quotes have been calculated on Ethias.be, leading to 39.000 new contracts through the web. Although they launched their first website in 1996 and won the “Inside Internet e-commerce Awards” in 2003, Ethias hadn’t any experience yet in Search Engine Marketing. Looking to complete their e-marketing strategy, Ethias selected in June 2003 Extenseo as their SEM agency, based on Extenseo’s reputation and its experience in the insurance sector.

Challenges • Ethias Bank & Insurance has a lot of products to promote, leading to hundreds of keywords to manage. • The Ethias.be domain name had not that much external links since the brand change (OMOB/SMAP -> Ethias) in December 2003. • A new site had to be launched end 2005, involving multiple teams: – Marketing (Ethias) – Design & IT (NRB) – SEM agency (Extenseo)

Solution • Chosen to: – continue with SEO (good results achieved in the past), – start with SEA (still unknown to Ethias). • SEO approach for the new site: – optimize the new site structure since the beginning – optimize every (relevant) internal page of the new site (HTML Templates, Copywriting, Internal Links, etc.) in collaboration with the different teams, mainly by giving Training’s & Consulting, and a strict follow-up on the project. • SEA: – Test with a time-limited (2 months) Google AdWords campaign.

Results > SEO Positions in Google.be • On the 160 strategic keywords/pages, more than 100 keywords are now ranked on the 1st page, with most of them in the top 3 results! September 13, 2006

Results > Global Traffic • Since the collaboration with Extenseo, the search engine traffic evolved from 1-4% to 13%-17% of the global traffic. Ethias.be: Traffic (Global & Search Engines) 400.000 350.000 300.000 250.000 Visitors Total Visitors 200.000 SEO+SEA Visitors 150.000 100.000 50.000 0 4 4 4 4 5 5 5 5 5 5 6 6 6 6 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 05 07 09 11 01 03 05 07 09 11 01 03 05 07

Results > Search Engine Traffic • In addition to SEO, the SEA campaigns: – allow to get visibility on competitive terms, – reinforce the brand visibility on well ranked SEO keywords. Ethias.be: Search Engine Traffic (Split SEO/SEA) 60.000 50.000 40.000 Visitors SEA Visitors 30.000 SEO Visitors 20.000 10.000 0 4 4 4 4 5 5 5 5 5 5 6 6 6 6 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 05 07 09 11 01 03 05 07 09 11 01 03 05 07

Results > SEO Traffic • Depending on the life of the site and the level of optimization, the SEO traffic can quickly evolve. Ethias.be: SEO Traffic Results of the in-depth 45.000 optimization of the new site. 40.000 Results of a major 35.000 re-optimization 30.000 Visitors 25.000 20.000 Results of the 1st optimization 15.000 10.000 5.000 New site launched 0 4 4 4 4 5 5 5 5 5 5 6 6 6 6 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 05 07 09 11 01 03 05 07 09 11 01 03 05 07

Results > SEA Traffic • Q2/2005: launch of the 1st Google AdWords campaign (2 months period) • Q2/2006: launch of a permanent & global Google AdWords campaign Ethias.be: SEA Traffic 16.000 14.000 12.000 10.000 Visitors 8.000 6.000 4.000 2.000 0 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08

Results > ROI The power of search engines was initially underestimated by some persons at Ethias… but results are in fact impressive. • 5% of the Ethias e-marketing budget are dedicated to SEM (SEO+SEA). • More than 100 strategic keywords are ranked on the 1st page. • Search engines generate 13-17% of the Ethias.be global traffic. • 300% increase of the search engine traffic in 1 year, 500% in 2 years. • More than 40% of the SEA visitors request an online quote. • SEO & SEA have: – the lowest acquisition cost – & the highest conversion rates among the different e-marketing techniques used by Ethias.

Findings & Conclusion • Google generates 94% of the Ethias.be search engine traffic. • Search engines generate today 13-17% of the global traffic, with SEO generating 3 times more traffic than SEA. • SEO and SEA are 100% complementary. • SEO is at least 2 times more profitable than SEA. • SEO Link building takes time, but is really worth it! • Due to the very good results, Ethias will continue to invest time & budgets in the coming months on its SEM Strategy.

Emakina Academy 5 - Know your audience - Extenseo

by Emakina on May 16, 2007

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Emakina Academy 5 - Know your audience - Extenseo — Presentation Transcript