The Evolution of Paid SearchPresentation Transcript
The Evolution of Paid Search Spotting & Staying Ahead of the Trend Matt Lawson VP of Marketing Marin Software
About Marin The leading platform for managing search, display, and social
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)
The Impact of Google Instant on Paid Search
What is Google Instant? 12
Instant Represented a Paradigm Shift Increased volumes & lower per click costs.
Instant Changed Consumer Behavior Users complete searches with fewer words.
Smart Advertisers Were Rewarded Instant allows advertisers to better capitalize on narrow match types.
The Impact of Google Instant Engines (More Clicks) Consumers(More searches) Advertisers (Lower Cost Per Click)
The Yahoo-Bing Search Alliance 17
More Volume with Less Effort 4.4B Monthly Searches 2.6B Monthly Searches 1.8B Monthly Searches 154M Unique Searchers 110M Unique Searchers 28.6% Share 94M Unique Searchers 16.9% Share 11.7% Share U.S. data shown Source: comScore Media Metrix March 2010 18
Market Share Impact The alliance resulted in increased impressions and clicks at a lower overall cost to advertisers. 19
A Favorable Performance Environment Resulting in higher conversion rates, at lower cost per acquisition
The Impact of the Search Alliance Engines (More Clicks) Consumers(?) Advertisers (Increased Performance)
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)
Anticipate changes in volume
Don’t Limit Spend On Top Performing Campaigns 31
32 Get More Impressions with Accelerated Delivery
Capitalize on Search Engine Innovation
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
Use Keywordless Ads to Mine the Tail
Actively Manage Quality The search marketers goal is to tighten connections between search query, keyword, and ad copy. Keyword Selection Copy Testing Campaign Structure
Shape Traffic to Favor Exact Terms
Increase Relevance with Tight Ad Groups
How Will Engines Shape the Future?
Matt Lawson email@example.com Download the Advanced Search Tips Whitepaper at www.marinsoftware.com!