The Leader In Paid Search Applications But online still represents less than 15% of total advertising spend.
Advertisers spend 3x more on traditional media than the internet (Yet consumers spend an equal amount of time on each.)
Online Ad Spend Can Double % of Time Spent in Media vs. % of Advertising Spending, USA 2009 ~$50BN Global Opportunity % of Total Consumption Note: Time spent data per NA Technographics (2009), ad spend data per VSS, Internet advertising opportunity assumes online ad spend share matches time spent share, per Yahoo!. Source: Yahoo! Investor Day, 5/10; Morgan Stanley.
About Marin Software Spend is rising faster than query volume, putting pressure on costs-per-click
The Search Marketer’s Dilemma Increase spend while maintaining a constant ROI This Creates a Problem for Search Engines How to increasing volume without increasing click costs? 9
How are Search Engines responding? Inventory (Improve Performance) Consumers(Expand Query Volume) Advertisers (Incentivize Efficiency)
Quality as the Key Driver of ROI "Quality Score helps ensure that only the most relevant ads appear to users. The AdWords system works best for everybody -- advertisers, users, publishers, and Google -- when the ads we display match our users' needs as closely as possible… …In general, the higher your Quality Score, the lower your costs and the better your ad position.” -- adwords.google.com
Large Advertisers Realizing Efficiency Gains 25
Trends by Match Types Click-through rates on exact match have improved… …while cost-per-click on exact match have declined. 26
Resulting in a Shift by Advertisers Advertisers increased their % of clicks on exact match by 7% last year, lowering costs. 27
The Impact of Quality Score Changes Engines (More clicks) Consumers(Relevant ads) Advertisers (Increased efficiency)
Review & Maintain Engine Parity CAMPAIGN A CAMPAIGN A Group A Group B Group A Group B KW KWKWKWKWKWKWKWKWKWKWKW KW KWKWKWKW KW KWKWKWKWKWKWKW KW KWKWKW KW KWKWKWKW KW KWKWKWKWKWKWKWKWKWKW KW KWKWKWKWKW KW KWKWKWKWKW VS. Group C Group D Group C KW KWKWKWKWKWKWKWKWKWKWKWKWKW KW KWKWKWKWKWKWKWKW KW KWKWKW KW KWKW KW KW Maximize coverage in AdCenter, and benchmark spend levels against the competition. 34