Search Engine Marketing with Salford University


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A presnetation developed by Aleksei Heinze of Salford Uni with a tiny bit of input from me

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Search Engine Marketing with Salford University

  1. 1. S e a r c h Engine Marketing Salford Business Showcase | 8th October 2009 Dr Aleksej Heinze Search Engine Marketing Management lecturer Salford Business School 0161 295 5024 Simon Wharton Managing Director PushON Ltd 0844 967 0565
  2. 2. <ul><li>Established in 2005 </li></ul><ul><li>Team of 7 industry-proven professionals with over 39 years of technical and marketing experience in Online Marketing </li></ul><ul><li>Council member for Manchester Digital (Trade body for North West ICT and new media sectors) </li></ul><ul><li>Approved consultant to the MDDA for Online Marketing </li></ul><ul><li>Member of the Chartered Institute of Marketing (CIM) </li></ul><ul><li>Google Adwords professionally qualified </li></ul><ul><li>Demonstrable track record of success </li></ul><ul><li>Holder of Professional Indemnity Insurance </li></ul>
  3. 3. Salford Business School <ul><li>Established in 2006 </li></ul><ul><li>Open Programmes: </li></ul><ul><ul><li>Search Engine Marketing Management </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>LEAD Programme </li></ul></ul><ul><ul><li>Institute of Directors (IoD) </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>Management and Leadership Toolkit </li></ul></ul><ul><ul><li> </li></ul></ul><ul><li>Knowledge Transfer Partnerships </li></ul><ul><ul><li> </li></ul></ul><ul><li>Salford MBA </li></ul><ul><ul><li> </li></ul></ul>
  4. 4. Key points <ul><li>Why SEMM/SEO? </li></ul><ul><li>Impact on your marketing mix </li></ul><ul><li>Measurable online presence is important </li></ul><ul><li>How to measure where your website is now? </li></ul><ul><li>Cowboys </li></ul>
  5. 5. Fun time <ul><li>Volunteer to look at your web-site </li></ul>
  6. 6. Why Search Engine Marketing Management (SEMM)/Search Engine Optimization (SEO)?
  7. 7. UK Households: 65% had internet access in 2008 (National Statistics, 2008) National Statistics (2008) Internet Access - 65% of households had access in 2008, accessed from PricewaterhouseCoopers. (2008). Ninth Information Security Breaches Survey: Department for Business, Enterprise & Regulatory Reform (BERR), accessed from UK Businesses: 97% have a broadband internet connection 93% have a corporate website. (PricewaterhouseCoopers, 2008)
  8. 8. Online advertising 'overtakes TV' <ul><li>Online spending increased to £1.752bn </li></ul><ul><li>TV spending shrank to £1.639bn. </li></ul><ul><li>First half of 2009 </li></ul><ul><li>BBC 30th September 2009 available from </li></ul>
  9. 9. What is the future? <ul><li>The PayPal UK Online Retail Report forecasts that from 2008 to 2011: </li></ul><ul><li>UK online retail spend is forecast to more than double: from £9.1 billion to £21.3 billion by the end of 2011 </li></ul><ul><li>Shoppers are expected to spend at least one in every 14 pounds online by 2012 </li></ul><ul><li>Source: PayPal’s UK Online Retail Report, conducted by Experian (2009) Accessed online: </li></ul>
  10. 10. More search only equates to more frustration for consumers <ul><li>Levels of search volume are standing at an all-time high </li></ul><ul><li>But consumers are now having to search harder and more often to find what they want </li></ul><ul><li>AdWords service changed in May 2008 by allowing non-trademark owners to bid on trademarked terms in the UK and Ireland </li></ul><ul><li>Brand owners appear to be very poor at getting themselves to the top of searches </li></ul><ul><li>Source: Internet Quarterly - UK - September 2008 </li></ul>
  11. 11. Difference SEO vs SEMM SEO SEMM Measure Website traffic Goal conversion Feature Organic SEO and Pay-Per-Click SEO Integrates SEO with offline marketing communications Focus Search Engines Return on investment
  13. 13. Classic Marketing Mix (4Ps) PRODUCT Appearance Features / Benefits Quality / Cost Range New Products USP Technology Branding Packaging PRICE Cost based Competitor based Value based Strategies: Skimming Penetration Psychological Loss leader PLACE Where do customers look and buy? Retail Wholesale Distribution Mail Order Direct Internet PROMOTION Objective: Integrated Marketing communications Corporate v Product Sales Promotion Advertising PR Personal Selling Direct marketing Internet
  14. 14. PROMOTION ADVERTISING TV / Radio Newspapers / Magazines Cinema Directories Word of mouth Leaflets / Brochures PR Publicity Events PROMOTIONS Special offers Trials Free gifts competitions PERSONAL SELLING Counter Field Telesales EXHIBITIONS TRADE FAIRS CORPORATE IDENTITY SPONSORSHIP POINT OF SALE MERCHANDISING DIRECT MARKETING Telemarketing, database marketing, loyalty schemes, relationship marketing INTERNET MARKETING Advertising Focus but can be all elements Product Company
  15. 15. <ul><li>Measure </li></ul><ul><li>RESPONSE </li></ul><ul><li>Track and Measure </li></ul><ul><li>Set GOALS </li></ul><ul><li>Understand your prospect </li></ul><ul><li>Attract highly qualified prospects </li></ul><ul><li>Build a relationship </li></ul><ul><li>Convert prospects to customers </li></ul><ul><li>Deliver customer value </li></ul><ul><li>ATTRACT </li></ul><ul><li>prospects </li></ul><ul><li>Online: </li></ul><ul><li>SEMM: SEO / Pay per Click </li></ul><ul><li>E-mail campaign </li></ul><ul><li>PR </li></ul><ul><li>Offline: </li></ul><ul><li>PR </li></ul><ul><li>Traditional Advertising (leaflets, brochures, newspaper ads, banners, posters etc) </li></ul><ul><li>Develop RELATIONSHIP </li></ul><ul><li>Search behaviour </li></ul><ul><li>Website usage </li></ul><ul><li>Capture E-mail address and contact details </li></ul><ul><li>Provide valuable content </li></ul>Internet/online/ e-marketing
  16. 16. Model for decisions on advertising <ul><li>Widget AdWords Pay Per Click costs £500 </li></ul><ul><li>Average margin for you = £500 </li></ul><ul><li>If we get 10 enquiries from this ad and 2 sales (20% conversion rate): </li></ul><ul><li>Cost per enquiry = £500 / 10 = £50 </li></ul><ul><li>Cost per sale = £500 / 2 = £250 </li></ul><ul><li>“ Net” Margin = £1,000 - £500 = £500 </li></ul><ul><li>ROI = £500 / £500 x 100 = 100 % </li></ul>
  17. 17. Customer Life Time Value <ul><li>Measure the value of a customer and estimate their lifetime value </li></ul><ul><li>Average Transaction Value </li></ul><ul><li>X </li></ul><ul><li>Number of transactions per year </li></ul><ul><li>X </li></ul><ul><li>Number of Years </li></ul>
  18. 18. Customer Life Time Value (CLTV) Example It is now !!! Even one year is worth £1,000 for a £100 ad <ul><li>CLTV = £4 x 10 times pa x 5 years = £200 </li></ul><ul><li>For the 25 customers that’s £5,000 for £100 ad spend </li></ul>Not worth doing? <ul><li>Theatre Company AdWords in Pay Per Click £100 </li></ul><ul><li>Average margin for you = £4 </li></ul><ul><li>If we get 50 enquiries from this ad and 25 sales (50% conversion rate): </li></ul><ul><li>Cost per enquiry = £100 / 50 = £2 </li></ul><ul><li>Cost per sale = £100 / 25 = £4 </li></ul><ul><li>“ Net” Margin = £4 - £4 = £0 </li></ul>
  19. 19. Activity 2: List your marketing activities and estimate/calculate their ROI and CLTV Activity ROI CLTV Set Budget Set Goal
  20. 20. How to measure your website’s performance?
  21. 21. Search engines <ul><li>Essentially are permanently switched on calculators </li></ul><ul><li>Bots or program scripts constantly visit web pages and evaluate them </li></ul><ul><li>Bots “sort” pages that they come across </li></ul><ul><li>Once a page has been visited it is </li></ul><ul><ul><li>a) added to the index server – similar to the index page of a book </li></ul></ul><ul><ul><li>b) a cash or a snapshot of the page is taken </li></ul></ul>
  22. 22. Keeping Consumers Connected - UK - September 2008 – Google ís The Winner Figure 20: How often consumers use search engines, by frequency, July 2008 Yahoo! Google MSN Other % % % % Any users 83 99 66 48 Use the most 9 79 4 3 Use sometimes 45 17 33 20 Used more in the past, but not so much now 28 3 29 25 Have never used 17 1 34 52 Base: 2,000 internet users aged 16+ Source: GMI/Mintel
  23. 23. The Google analysis <ul><li>Google uses over 200 variables to determine position of any one web page </li></ul><ul><li>PageRank™ algorithm (based on link structure of the web) </li></ul><ul><li>Hypertext-matching analysis are determining which pages (not sites) are relevant to the specific search </li></ul><ul><li>Individual web page position is calculated by combining </li></ul><ul><ul><li>a) overall importance of the page (PageRank ) and </li></ul></ul><ul><ul><li>b) query-specific relevance to the search ( Hypertext-matching analysis) </li></ul></ul><ul><li>Other search engines followed and developed similar algorithms </li></ul>
  24. 24. Measure you website now? <ul><li>Google Analytics - www. google .com/ analytics / </li></ul><ul><li>Seoquake - </li></ul><ul><li>SEOBook toolbar - </li></ul><ul><li>and many others…. </li></ul>
  25. 25. Compare sites <ul><li>SEO Book toolbar </li></ul>
  26. 26. Activity 3 – Using the SEObook toolbar, evaluate the web site <ul><li>What does this analysis indicate to us? </li></ul><ul><li>What can we do to improve? </li></ul>Site name PRank Internal links External links Site age
  27. 27. Workshop summary <ul><li>SEO/ SEMM is increasingly important </li></ul><ul><li>Use SEO/ SEMM in combination with other </li></ul><ul><li>A number of tools to measure your website performance </li></ul><ul><li>Be careful when selecting agencies </li></ul><ul><li>Management training courses: </li></ul><ul><li>Consultancy advice: </li></ul>
  28. 28. Simon Wharton Aleksej Heinze Salford Business School t: 0844 967 0565 01612955024 m: 07900 224 764 07759 160 243 e: [email_address] [email_address]
  29. 29. Bibliography <ul><li>Brin, S., & Page, L. (1998). The anatomy of a large-scale hypertextual Web search engine. Computer Networks and ISDN Systems, 30(1-7), 107-117 </li></ul><ul><li>Jones, K. B. (2008). Search Engine Optimization. Indianapolis, IN, USA: Wiley Publishing. </li></ul><ul><li>Walter, A. (2008). Building findable websites: Web Stanards, SEO and beyond. Berkeley, CA, USA: New Riderers. </li></ul><ul><li>Harald Weinreich, Hartmut Obendorf, Eelco Herder, and Matthias Mayer: &quot;Not Quite the Average: An Empirical Study of Web Use,&quot; in the ACM Transactions on the Web, vol. 2, no. 1 (February 2008). </li></ul><ul><li>Forrester, B. (2009) Marketing Mix and Customer Life Time value matrix notes from the Search Engine Marketing Management course. Salford Business School, Salford, UK </li></ul>