Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Three Buckets of Search Shifting Allocation to Increase ROI by Augustine Fou


Published on

Search advertising is already orders of magnitude more effective than display ads. However, there is further opportunity to optimize the type of search marketing done -- from paid search to organic search optimization, to site search.

Published in: Business
  • Be the first to comment

Three Buckets of Search Shifting Allocation to Increase ROI by Augustine Fou

  1. 1. Search (ads, organic) Paid Search Site Search • Useful when there is lack of natural search results. • Cost efficient because advertiser pays when they gett the clisk. CTR Organic Search • Takes time to accomplish – for results to rise up to first page. • Long lasting payoff that does not end when media dollars are turned off. • Useful in harvesting demand that is already expressed – visitor already on site. • Insights about what they cannot find. 10-90% 100% 1-10% Shift allocation to get more long term value, lower cost -1- Augustine Fou
  2. 2. So What? “In addition to shifting dollars from „reach and frequency‟ type ads like display ads to search, advertisers can further optimize their use of the different types of search. Improving organic search and site search can have a more direct impact on ROI and a longer term effect than paid search which is over once budgets run dry.” - Dr. Augustine Fou -2- Augustine Fou
  3. 3. Dr. Augustine Fou – Chief Digital Strategist “I advise clients on benchmarking and then optimizing their digital marketing activities, with a focus on search optimization and integration with the broader marketing mix.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 ClickZ Articles: Slideshares: LinkedIn: -3- Augustine Fou
  4. 4. Related Articles State of Online Video Ads By: Augustine Fou, December 2013 Brand Dollars Shifting to Digital By: Augustine Fou, December 2013 Why Digital Kicks Traditional By: Augustine Fou, March 2012 Shift of Ad Dollars Within Digital By: Augustine Fou, March 2013 Video Ads Destroy TV Ads By: Augustine Fou, April 2012 The Magnitude of Digital Ad Fraud By: Augustine Fou, November 2013 Mythbusting Advertising By: Augustine Fou, June 2012 The Biggest Lies of TV Advertising By: Augustine Fou, May 2012 -4- Augustine Fou
  5. 5. APPENDIX -5- Augustine Fou
  6. 6. Search Benchmarks Paid/ SEM Organic For long tail, descriptive keywords share of clicks CTR CPC 1-2 words 4.8% $0.51 For brand terms and expensive keywords 6 - 10% 3-4 words 5.1% $0.54 90 - 94% 5-6 words 5.6% $0.60 13 - 69% FREE Source: SlingShot SEO Shift budget to organic to get more clicks at lower cost -6- Augustine Fou
  7. 7. Paid Search vs Organic (SEO) Distribution of Search Clicks SEO 89.5% PPC 10.5% Distribution of Marketing Spend SEO 10.8% $1.4B PPC 88.8% $11.9B 13% $2.2B 87% Est 2012 figures $14.7B 2009 figures Clicks from organic search (SEO) account for 90% of all clicks; yet budgets for SEO only account for a little over 10% of the search spending. Source: SEMPO -7- Augustine Fou
  8. 8. Paid vs Natural Click Distribution 94% of clicks go to natural search results 6% of clicks go to paid search results Source: Search Engine Watch, August 2012 -8- Augustine Fou
  9. 9. Click Through Rates (CTRs) of Digital Ads with sub-types Search Display ads are served next to content that the user is interested in. Display ads with massive number of impressions; “Junk” quality and super-low prices and CTRs Organic -9- Social Ads are based on keyword typed by user, served at the moment they are looking for info. CTR Display Paid Portals Network 10-90% 1-10% 0.1-1% 0.01-0.1% 0.001-0.01% Augustine Fou
  10. 10. Natural CTR by Industry Top 3 organic results Airlines Broadcast Financial Online Games Auto Manuf Apparel/Beauty Cellular Government Mass Merch Corporate Hardware Current Events Food/Cooking Software Home/Garden Consumer Electr 78% 64% 64% 61% 60% 58% 56% 55% 55% 53% 51% 50% 46% 44% 42% 39% 11% 9% 12% 12% 19% 11% 15% 15% 8% 12% 17% 10% 17% 20% 9% 9% 4% 9% 5% 8% 6% 4% 7% 10% 7% 8% 8% 8% 9% 8% 9% 8% Source: Search Engine Watch, August 2012 - 10 - Augustine Fou