About Search Marketing

[object Object],Source: Hal Varian’s Berkeley Lecture on Search Economics

[object Object],comScore April 2008 Search Engine Rankings

AND 3 PAID SEARCH PROVIDERS Based on June 2008 Covaris numbers reported at mediapost (msn is inferred)

[object Object],$0.25 x 10000 clicks = $2500 $1.00 x 2500 clicks = $2500 $10.00 x 250 clicks = $2500

[object Object],[object Object],[object Object]

[object Object],Source: Jan Pederson’s Search Quality Presentation at Berkeley (2007)

[object Object],ashtonsd90.com bids $1.38 ritzcamera.com bids $1.17 shopcartusa.com bids $3.23

[object Object],ashtonsd90.com bids $1.38 , ranks 2 nd and pays $1.38 ritzcamera.com bids $1.17, ranks 3 rd and pays $1.17 shopcartusa.com bids $3.23, ranks 1 st and pays $3.23

[object Object],ashtonsd90.com bids $1.38 , ranks 2 nd and pays $1.17 ritzcamera.com bids $1.17, ranks 3 rd and pays ??? shopcartusa.com bids $3.23, ranks 1 st and pays $1.38

[object Object],Google’s customers are ranked based on a quality score * their bid and pay slightly more than the next ranked bidder not exceeding their maximum bid. PRICE AND RANKING ARE RECALCULATED EACH QUERY

[object Object],ashtonsd90.com 1.38 x 4 = 5.52 ritzcamera.com 1.17 x 6 = 7.02 shopcartusa.com 3.23 x 1 = 3.23

[object Object],ashtonsd90.com 1.38 x 4 = 5.52 pays 3.23/4 = .82 ritzcamera.com 1.17 x 6 = 7.02 pays 5.52/6 = .93 shopcartusa.com 3.23 x 1 = 3.23 pays minimum .05

[object Object],HYPOTHESIZED PRICE = NextPlace(AR) / QS +.01 Company Bid QS AR Ashtonsd90 ? 4 Ritzcamera 1.17 6 7.02 Shopcartusa 3.23 1 .05

[object Object],As compiled on mindofmichael.com

[object Object],Slide 37: 'Happy Kids NEED A Healthy Sandbox‘ www.flickr.com/photos/44124458380@N01/567277264

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