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 assum...
We’re Going To Cover...
• Why Me?
• Search Business Metrics
• Which Metrics Matter Most?
– Coverage
– CPC
– CTR
• The Page...
About Nichola
• Founded theMediaFlow 2009
• Yahoo! UK head of search partners
• Insight to global search metrics
• Managed...
The Business of Search
Search Business Metrics
Search Business Metrics
• Searches
• Coverage
• CPC
• CTR
@NicholaStott
Search Business Metrics
@NicholaStott
???
Search Business Metrics
S x Cov x CPC x CTR = $$$$$$$$$$$$$$$$$$$$
@NicholaStott
1000
= RPM
Search Business Metrics
1M x 85% x 0.18 x 15% = £22,950 /RPM - £22.95
If this figure were exact...
“Google Sites Accounts ...
Search Business Metrics
UK December 2009 = 6,245,000,000*
Google share = 90%
/1000 = 5,620,500
x RPM (£22.95)
= £128,990,4...
Search Business Metrics
@NicholaStott
GBP to USD 31 day average December 09 – 1.62388
www.oanda.com
= $209,465,052.54
Goog...
Search Business Metrics
@NicholaStott
October 2009 November 2009 December 2009
$281,267,473.73 $281,267,473.73 $209,465,05...
Search Business Metrics
@NicholaStott
Which metrics matter most? Which do search
engines want to grow?
The Business of Search
Which Metrics Matter Most?
Coverage
Coverage? Imagine a 6% increase...
1M x 90% x 0.18 x 15% = £24,300
RPM = £24.30
Would it happen like this?...
@Ni...
Search Business Metrics
@NicholaStott
Coverage
@NicholaStott
Additional 6% of covered terms @ 0.05p
1M x 90% x 0.1722 x 15% = £23,247
RPM = £23.24
Would it happ...
Coverage
@NicholaStott
Additional 6% of covered terms @ 1% CTR
1M x 90% x 0.1722p x 14.01% = £21,712.70
RPM = £21.71
Worse...
The Business of Search
Which Metric Matter Most?
CPC?
CPC
CPC? Imagine a 6% increase...
1M x 85% x 0.1908 x 15% = £24,327
RPM = £24.33
Would it happen like this?...
@NicholaSto...
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
The Business of Search
Which Metrics Matter Most?
CTR?
CTR
@NicholaStott
CTR
How can we improve CTR without compromising
UX/SX?
• Improve match technologies
• Reduce search abandonment rate
• Imp...
The Business of Search
The Page One Objective
The Page One Objective
1M x 85% x 0.225p x 15.5% = £29,643.75
RPM = £29.64
@NicholaStott
The Page One Objective
@NicholaStott
New SERP with greater
universal content focus
Mayday, Mayday!
“Yes it has effected th...
The Business of Search
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...
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Nichola Stott - Manchester SEO MiniConference

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Nichola Stotts opening presentation from the Sascon Manchester SEO mini-conference hosted by Peter YOung

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Nichola Stott - Manchester SEO MiniConference

  1. 1. The Business of Search An Insider Perspective on the Search Engine Business and How This Shapes Our Approach
  2. 2. 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
  3. 3. We’re Going To Cover... • Why Me? • Search Business Metrics • Which Metrics Matter Most? – Coverage – CPC – CTR • The Page One Objective @NicholaStott
  4. 4. 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
  5. 5. The Business of Search Search Business Metrics
  6. 6. Search Business Metrics • Searches • Coverage • CPC • CTR @NicholaStott
  7. 7. Search Business Metrics @NicholaStott ???
  8. 8. Search Business Metrics S x Cov x CPC x CTR = $$$$$$$$$$$$$$$$$$$$ @NicholaStott 1000 = RPM
  9. 9. Search Business Metrics 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
  10. 10. Search Business Metrics 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
  11. 11. Search Business Metrics @NicholaStott GBP to USD 31 day average December 09 – 1.62388 www.oanda.com = $209,465,052.54 Google Q4 Earnings 2009
  12. 12. Search Business Metrics @NicholaStott October 2009 November 2009 December 2009 $281,267,473.73 $281,267,473.73 $209,465,052.54
  13. 13. Search Business Metrics @NicholaStott Which metrics matter most? Which do search engines want to grow?
  14. 14. The Business of Search Which Metrics Matter Most?
  15. 15. 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
  16. 16. Search Business Metrics @NicholaStott
  17. 17. Coverage @NicholaStott Additional 6% of covered terms @ 0.05p 1M x 90% x 0.1722 x 15% = £23,247 RPM = £23.24 Would it happen like this?...
  18. 18. Coverage @NicholaStott 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!
  19. 19. The Business of Search Which Metric Matter Most? CPC?
  20. 20. CPC CPC? Imagine a 6% increase... 1M x 85% x 0.1908 x 15% = £24,327 RPM = £24.33 Would it happen like this?... @NicholaStott
  21. 21. CPC CPC controlled by... Macro-economic factors Smart Pricing @NicholaStott
  22. 22. CPC @NicholaStott
  23. 23. 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
  24. 24. The Business of Search Which Metrics Matter Most? CTR?
  25. 25. CTR @NicholaStott
  26. 26. 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
  27. 27. The Business of Search The Page One Objective
  28. 28. The Page One Objective 1M x 85% x 0.225p x 15.5% = £29,643.75 RPM = £29.64 @NicholaStott
  29. 29. The Page One Objective @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
  30. 30. The Business of Search Final Point – Just for Fun...
  31. 31. 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
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