Nichola Stott - Manchester SEO Mini Conference

The Business of Search
An Insider Perspective on the Search Engine Business and How This Shapes Our Approach

Disclaimer
All figures shown with source credits are drawn from publicly available sources.
All non-credited data is assumed, based on similar published sources and managed client data, and is purely for illustrative purposes only.
@NicholaStott

We’re Going To Cover...
Why Me?
Search Business Metrics
Which Metrics Matter Most?
Coverage
CPC
CTR
The Page One Objective
@NicholaStott

About Nichola
Founded theMediaFlow 2009
Yahoo! UK head of search partners
Insight to global search metrics
Managed Guardian, ITV, Orange, EU domain, EU arbitrage etc
Traffic Quality and Pricing Discounts rep
@NicholaStott

Searches
Coverage
CPC
CTR
@NicholaStott

@NicholaStott
???

S x Cov x CPC x CTR = $$$$$$$$$$$$$$$$$$$$
1000
= RPM
@NicholaStott

1M x 85% x 0.18 x 15% = £22,950 /RPM - £22.95
If this figure were exact...
“Google Sites Accounts for Two-Thirds of 131 Billion Searches Conducted Worldwide in December”Comscore Global Search Market Growth Report – 2009
@NicholaStott

UK December 2009 = 6,245,000,000*
Google share = 90%
/1000 = 5,620,500
x RPM (£22.95)
= £128,990,475
* Comscore Global Search Market Growth Report – 2009
@NicholaStott

Google Q4 Earnings 2009
GBP to USD 31 day average December 09 – 1.62388
www.oanda.com
= $209,465,052.54
@NicholaStott

@NicholaStott

Which metrics matter most? Which do search engines want to grow?
@NicholaStott

Coverage
Coverage? Imagine a 6% increase...
1M x 90% x 0.18 x 15% = £24,300
RPM = £24.30
Would it happen like this?...
@NicholaStott

@NicholaStott

Coverage
Additional 6% of covered terms @ 0.05p
1M x 90% x 0.1722 x 15% = £23,247
RPM = £23.24
@NicholaStott

Coverage
Additional 6% of covered terms @ 1% CTR
1M x 90% x 0.1722p x 14.01% = £21,712.70
RPM = £21.71
Worse than when we started at £22.95!
@NicholaStott

Which Metric Matter Most?
CPC?

CPC
CPC? Imagine a 6% increase...
1M x 85% x 0.1908 x 15% = £24,327
RPM = £24.33
@NicholaStott

CPC
CPC controlled by...
Macro-economic factors
Smart Pricing
@NicholaStott

CPC
@NicholaStott

CPC
CPC up 6%, CTR down 1%
1M x 85% x 0.1908 x 14% = £22,705.20
RPM = £22.70
Back to square one...
@NicholaStott

CTR?

CTR
@NicholaStott

CTR
How can we improve CTR without compromising UX/SX?
Improve match technologies
Reduce search abandonment rate
Improve total result relevance
Shift the distribution of all CTR activity to P1
@NicholaStott

1M x 85% x 0.225p x 15.5% = £29,643.75
RPM = £29.64
@NicholaStott

@NicholaStott
New SERP with greater universal content focus
Mayday, Mayday!
“Yes it has effected the long tail, on poorer quality sites”
“Yes it is a quality win”
“Yes it passed all the tests” (@54 secs)
Google Instant - more impressions, more relevant, more 1st page action

Final Point – Just for Fun...

Google Q4 UK Revenue 2010
UK Searches 6,245BN (35% YoY on 2008)
Up 25% YoY = 7806BN
Google 90% = 7025BN
@RPM £29.64 = £208,221,000
GBP – USD 30 day average (Sept) = 1.55576
$323,941,902.96
October, November up 25.5% on December ($406,547,088.21)
= $1,137,036,079.38
@NicholaStott

http://www.manchester-seo.org	51
http://www.gospelrhys.co.uk	29
http://feeds.feedburner.com	9
http://www.net66.co.uk	7
http://www.seowizzards.co.uk	4
http://media-amaze.posterous.com	2
http://webcache.googleusercontent.com	1

Nichola Stott - Manchester SEO Mini Conference

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Nichola Stott - Manchester SEO Mini Conference — Presentation Transcript