1    Search Engine Marketing    Strategies & Forecasts for Holiday 2012    Laura Jajko                                Uday...
Webinar Information• Thank you for joining NetElixir University’s first webinar!• Attendees can raise their hand or ask qu...
What will be Covered…• 5 strategies for a successful paid search campaign  this holiday season.• Best practices: American ...
About Laura Jajko & American Frame4    • Laura is VP of Sales & Marketing. Second generation member of the    company.    ...
About Udayan Bose5    •   Founder & CEO, NetElixir,Inc.    •   Founded PartyBingo.com (PartyGaming, Plc).    •    Guest Le...
About NetElixir    •   Incorporated in 2005. Headquartered in Princeton, NJ.6    •   We offer multi-channel campaign manag...
7    Why Do We Need SEM Strategies for Holidays?
For some retailers, the holiday season can    represent anywhere between 20–40% of annual8   sales. (National Retail Found...
Average CPC across retail categories goes up    by 39% during holidays. (NetElixir Lab)9                                  ...
Number of paid search advertisers per retail     category increases by 32%. (NetElixir Lab)10
Our research shows that for any search query     across retail categories, 70%+ of paid search11   advertisers lose money....
12     Strategies to ensure you are in 30%
13       Decide what Products to     promote through Paid Search
Margin14       ROI     Velocity
Category Level ROI Grid15                Expand Your Keyword List      Controlled Expansion.     Margin              Is Ke...
Assess Competition for Each Quadrant.16     Create pin-pointed paid search tactics for     each quadrant.
Start by creating a category-level margin & volume table..17 Category             # Units   Average Unit Value   Average R...
Pre-set Budget for Each Category     Budget Allocation Across Categories:18   Category                      Type Of Keywor...
19     Once you have the category-level               plan ready..      only then start with execution.
20     Keyword Efficiency Audits you Need to     do Before the Holidays
Keyword Facts from NetElixir Research Lab21        Based on 300+ Keyword Audits conducted from        January 2009-Septemb...
22     Less than 2% of active keywords       deliver 100% of conversions.
1/4th of Keyword Spend generates $0 in sales23                     25% = 0
Step 1: Download 3 month keyword report     from search engines.24                                                        ...
Step 2: Upload this keyword report to Keyword Analyzer tool25     http://www.lxrmarketplace.com/keywordanalyzertool.html
26     Ensure that your long tail     keyword strategy     is working.
Keyword Advertising does not need to     be throwing mud at the wall…27                Mud image
% of SEM Spend delivering zero sales               (3 month trigger)28                  10% = 0
Number of Active Keywords     (Retail Benchmark)29      $7/keyword/month
30     Customized Ad Copies drive stronger results
Sample American Frame Ad Copy31                                      1                                          5         ...
Brand Name in Headline32         CTR: 11%
2   Free Shipping in Display URL33            CTR: 19%
3   Seller Reviews34         CTR: 7%
4    Sitelinks35         CTR: 5%
36
5        Buy Now!37            (at the end of ad copy)         CTR: 25%         Conversion Rate:19%
38     Managing SEM Program in-house                  vs.      Outsourcing to SEM Agency.
Questions39     1. Is SEM a core activity for your business?     2. Do you have expert in-house resource?     3. What is y...
What’s the Best Solution for my Business?40                   Outsource                 to SEM agency                     ...
41     Insights on Holiday Search Trends
When did people search and when did they buy      Lenovo products on Cyber Monday?     50%42     45%     40%     35%     3...
When did people search and when did they buy     Lenovo products on Black Friday?      60.0%43      50.0%      40.0%      ...
44
3 Strategies to Maximize Holiday SEM Sales45     1. Day-part your campaigns for better results.     2. The first Sunday an...
46     Our Paid Search Advertising Forecasts               for 2012 Holidays
Key Paid Search Advertising Parameters     (YTD September 2012 versus YTD September 2011)47                   Y/Y Growth  ...
Select Categories (Y/Y Holiday Forecasts –2012 vs. 2011)                       Clicks (Y/Y   CPC (Y/Y   CTR (Y/Y   AOV (Y/...
NetElixir Holiday Forecasts: Summary49     1. Y/Y increase in Paid Search Clicks ~ 14%.     2. Y/Y increase in Average CPC...
Take Aways50   1. Holiday SEM is competitive and expensive.     2. Choose the products you want to promote using ROI Grid....
Download a complimentary copy of NetElixir’s            “Fresh SEM Ideas Workbook”51      http://www.netelixir.com/fresh20...
Thank You!            We wish you a very successful holiday season!52     Laura Jajko                          Udayan Bose...
Questions?   To submit a question, please use the GoToMeeting                sidebar on your screen.10/25/2012
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October 24th, 2012 - Webinar - SEM Forecasts & Strategies for 2012 Holidays

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On October 24, 2012, NetElixir University hosted its first webinar on SEM Forecasts & Strategies for 2012 Holidays.

If you have any questions about the material, please email shahira@netelixir.com.

Please join our NetElixir University group on LinkedIn for weekly SEM updates and news! http://www.linkedin.com/groups/NetElixir-University-4626057

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October 24th, 2012 - Webinar - SEM Forecasts & Strategies for 2012 Holidays

  1. 1. 1 Search Engine Marketing Strategies & Forecasts for Holiday 2012 Laura Jajko Udayan Bose VP, Marketing Founder & CEO AmericanFrame.com NetElixir.com The webinar will begin at 2pm EST. Join our LinkedIn Group: NetElixir University
  2. 2. Webinar Information• Thank you for joining NetElixir University’s first webinar!• Attendees can raise their hand or ask questions from the GoToMeeting sidebar.• We will be sharing the link to the presentation with all attendees tomorrow.• If you have any specific questions, please do not hesitate to email us: – shahira@netelixir.com – udayan@netelixir.com – lauraj@americanframe.com10/25/2012
  3. 3. What will be Covered…• 5 strategies for a successful paid search campaign this holiday season.• Best practices: American Frame’s ad copy strategy.• NetElixir’s SEM forecasts for 2012 holiday season.10/25/2012
  4. 4. About Laura Jajko & American Frame4 • Laura is VP of Sales & Marketing. Second generation member of the company. •Laura’s experience in search spans 7 years. American Frame has been working with NetElixir since July 2011. • Incorporated in 1973. Internet retailer since 2001. • Online source for custom picture frames, supplies, fine art printing & wholesale volume framing. • Connect with Laura (@LauraJajko) and American Frame (@AmericanFrame) on Twitter.
  5. 5. About Udayan Bose5 • Founder & CEO, NetElixir,Inc. • Founded PartyBingo.com (PartyGaming, Plc). • Guest Lecturer: - Johnson School of Management, Cornell University - City University of New York, Baruch - Indian School of Business • Fanatically Analytical. Passionate about tracking online shopper behavior through search advertising insights.
  6. 6. About NetElixir • Incorporated in 2005. Headquartered in Princeton, NJ.6 • We offer multi-channel campaign management technology , end- to-end campaign management services and web analytics consulting solutions to retailers • Ongoing Retail Search Insights Research since August 2008 (featured in NYTimes, Time, Forbes). LinkedIn Group: NetElixir University www.LXRMarketplace.com
  7. 7. 7 Why Do We Need SEM Strategies for Holidays?
  8. 8. For some retailers, the holiday season can represent anywhere between 20–40% of annual8 sales. (National Retail Foundation)
  9. 9. Average CPC across retail categories goes up by 39% during holidays. (NetElixir Lab)9 Average CPC ($) 0.9 0.8 0.7 39% 0.6 0.5 0.4 0.82 Average CPC ($) 0.3 0.59 0.2 0.1 0 Black Friday- December 20, 2011 Rest of 2011
  10. 10. Number of paid search advertisers per retail category increases by 32%. (NetElixir Lab)10
  11. 11. Our research shows that for any search query across retail categories, 70%+ of paid search11 advertisers lose money.2/3 advertisers lose money!
  12. 12. 12 Strategies to ensure you are in 30%
  13. 13. 13 Decide what Products to promote through Paid Search
  14. 14. Margin14 ROI Velocity
  15. 15. Category Level ROI Grid15 Expand Your Keyword List Controlled Expansion. Margin Is Keyword Search Advertising •Are these “Wave Making” Right for you? Products? Velocity
  16. 16. Assess Competition for Each Quadrant.16 Create pin-pointed paid search tactics for each quadrant.
  17. 17. Start by creating a category-level margin & volume table..17 Category # Units Average Unit Value Average Revenue/Month Revenue Contribution Target Revenue Strategy Embroidery 178 $6.12 $1,088.71 1.29% $1,933.00 Not Advertise Jacket 137 $17.85 $2,444.83 2.89% $4,340.77 Optmization + Expansion Lab Coat 85 $23.55 $2,002.15 2.37% $3,554.80 Optmization + Expansion Medical Supplies 150 $12.01 $1,802.07 2.13% $3,199.56 Not Advertise Pants 2230 $16.15 $36,017.83 42.63% $63,949.34 Optimization Shoes 66 $78.56 $5,185.26 6.14% $9,206.38 Expansion Tops 2373 $14.91 $35,393.07 41.89% $62,840.09 Optimization Vest 6 $17.99 $107.94 0.13% $191.65 Warm-Up 8 $16.99 $135.92 0.16% $241.32 Skirts 12 $25.49 $305.88 0.36% $543.09 Optmization + Expansion Total 5245 $16.11 $84,483.66 100% $150,000.00
  18. 18. Pre-set Budget for Each Category Budget Allocation Across Categories:18 Category Type Of Keyword % Of Spend Number of keywords Spend Pants (40% Of Total Spend) Generic 30% Product Specific 50% Long Tail 20% Tops (40% Of Total Spend) Generic 30% Product Specific 50% Long Tail 20% Shoes (10% Of Total Spend) Generic 30% Product Specific 50% Long Tail 20% Jacket (5% Of Total Spend) Generic 30% Product Specific 50% Long Tail 20% Lab Coats (3% Of Total Spend) Generic 30% Product Specific 50% Long Tail 20% Skirts (2% Of Total Spend) Generic 30% Product Specific 50% Long Tail 20% TOTAL $0.00
  19. 19. 19 Once you have the category-level plan ready.. only then start with execution.
  20. 20. 20 Keyword Efficiency Audits you Need to do Before the Holidays
  21. 21. Keyword Facts from NetElixir Research Lab21 Based on 300+ Keyword Audits conducted from January 2009-September 2012.
  22. 22. 22 Less than 2% of active keywords deliver 100% of conversions.
  23. 23. 1/4th of Keyword Spend generates $0 in sales23 25% = 0
  24. 24. Step 1: Download 3 month keyword report from search engines.24 Conversions Keyword state Keyword Campaign Ad Group Impressions Clicks Cost (1-click) Revenue
  25. 25. Step 2: Upload this keyword report to Keyword Analyzer tool25 http://www.lxrmarketplace.com/keywordanalyzertool.html
  26. 26. 26 Ensure that your long tail keyword strategy is working.
  27. 27. Keyword Advertising does not need to be throwing mud at the wall…27 Mud image
  28. 28. % of SEM Spend delivering zero sales (3 month trigger)28 10% = 0
  29. 29. Number of Active Keywords (Retail Benchmark)29 $7/keyword/month
  30. 30. 30 Customized Ad Copies drive stronger results
  31. 31. Sample American Frame Ad Copy31 1 5 3 2 4
  32. 32. Brand Name in Headline32 CTR: 11%
  33. 33. 2 Free Shipping in Display URL33 CTR: 19%
  34. 34. 3 Seller Reviews34 CTR: 7%
  35. 35. 4 Sitelinks35 CTR: 5%
  36. 36. 36
  37. 37. 5 Buy Now!37 (at the end of ad copy) CTR: 25% Conversion Rate:19%
  38. 38. 38 Managing SEM Program in-house vs. Outsourcing to SEM Agency.
  39. 39. Questions39 1. Is SEM a core activity for your business? 2. Do you have expert in-house resource? 3. What is your organizational philosophy? - Outsourcing versus in-house - Partnership versus Order Execution
  40. 40. What’s the Best Solution for my Business?40 Outsource to SEM agency Hybrid Model 3-6 months of outsourced In-house SEM followed with or without tool by in-house using tool.
  41. 41. 41 Insights on Holiday Search Trends
  42. 42. When did people search and when did they buy Lenovo products on Cyber Monday? 50%42 45% 40% 35% 30% 25% % of site visits % of site purchases 20% 15% 10% 5% 0% 0:00-6:00 ET 06:01-12:00 ET 12:01-18:00 ET 18:01 - 24:00 ET 42
  43. 43. When did people search and when did they buy Lenovo products on Black Friday? 60.0%43 50.0% 40.0% 30.0% % of Site visits % of orders 20.0% 10.0% 0.0% 0:00-6:00 ET 06:01-12:00 ET 12:01-18:00 ET 18:01 - 24:00 ET
  44. 44. 44
  45. 45. 3 Strategies to Maximize Holiday SEM Sales45 1. Day-part your campaigns for better results. 2. The first Sunday and Monday after Cyber Monday is a good time to use targeted SEM promotions. 3. Plot “Revenue/Click” for your SEM program for 2011 (day-wise), to identify the “sweet spot”.
  46. 46. 46 Our Paid Search Advertising Forecasts for 2012 Holidays
  47. 47. Key Paid Search Advertising Parameters (YTD September 2012 versus YTD September 2011)47 Y/Y Growth Y/Y Growth Y/Y Growth Y/Y Growth (YTD Sept (Q1,2012) (Q2,2012) (Q3,2012) 2012) Clicks 16.2% 11% 15% 17% CPC ($) 7.9% 10% 5.3% 7% Click- 5% 8% 3.8% 5% through- Rate Conversion 18% 24% 16% 13% Rate Average 3% 10.2% (1.5%) (1%) Order Value
  48. 48. Select Categories (Y/Y Holiday Forecasts –2012 vs. 2011) Clicks (Y/Y CPC (Y/Y CTR (Y/Y AOV (Y/Y Conversion Growth) Growth) Growth) Growth) Rate (Y/Y Growth)48 Flowers & Gifts 18% 8% 2% 4% 8% Apparel 16% 9% 7% 7% 13% Consumer 15% 12% 7% 7% 12% Electronics Food & Drugs 2% 5% 3% 3% 10% Home 15% 8% 6% 2% 12% Furnishings Pet Supplies 8% 2% 2% 2% 6% Home 11% 8% 6% 1% 16% Improvement Total 14% 9% 5% 2% 10% * Does not include clicks from mobile devices.
  49. 49. NetElixir Holiday Forecasts: Summary49 1. Y/Y increase in Paid Search Clicks ~ 14%. 2. Y/Y increase in Average CPC ~ 9%. 3. Average Order Value remains more or less flat.
  50. 50. Take Aways50 1. Holiday SEM is competitive and expensive. 2. Choose the products you want to promote using ROI Grid. 3. Use Keyword Analyzer tool to audit your keyword portfolio. 4. Create ad copies that are relevant, unique and compelling. 5. Let your goals drive outsourcing versus in-house SEM management decision. 6. Map day-wise Revenue/Click for 2011 PPC Campaigns and use the information to bid intelligently.
  51. 51. Download a complimentary copy of NetElixir’s “Fresh SEM Ideas Workbook”51 http://www.netelixir.com/fresh2012.html
  52. 52. Thank You! We wish you a very successful holiday season!52 Laura Jajko Udayan Bose VP, Sales & Marketing Founder & CEO AmericanFrame.com NetElixir.com lauraj@americanframe.com udayan@netelixir.com Join Our LinkedIn Group to get weekly SEM insights http://www.linkedin.com/groups/NetElixir-University-4626057
  53. 53. Questions? To submit a question, please use the GoToMeeting sidebar on your screen.10/25/2012

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