Search engine marketing (SEM) is an important way for brands to reach online audiences. SEM includes both organic search (SEO) and paid search (SEM). Paid search advertising is bought through auctions on search engines and advertisers only pay when their ad is clicked. Key factors that determine ad positioning include bids, quality scores, and match types. Optimizing bids, ad copy, extensions, and keywords can improve performance. While Google dominates the search market, advertisers can access other search engines' networks. SEM and SEO work together synergistically. Current trends show increasing digital ad budgets overall and a shift to mobile search driving the consumer journey.

1. Search Engine Marketing (SEM)

2. Agenda
Why Does Search Matter?
Search 101
What Else Should You Know?
Current Trends

3.  Leverage interest as media activity drives search activity
 Gain potentially high return on investment due to direct response nature
of campaigns
 Lift your brands organic traffic and overall online visibility
 Utilize search data and trends to better understand your target audience
and inform your offline media planning decisions
Why does search matter?

4. Search at the Center of the Journey
37% of Online
Searchers are driven by
television ads
30% of Online Searchers are driven by
magazine & newspaper ads
17% of Online Searchers
are driven by radio ads9% of Online Searchers are
driven by outdoor media
25% of Users exposed to
display ads searched on a
brand term

5. Search 101

6. What is Search?
ORGANIC
SEARCH
(SEO)
PAID SEARCH
(SEM)

7. 2
How are Ads served?
Search is bought on a real time action model
An advertiser determines the keywords they want to purchase, they are entered
into the auction and compete in real time versus other advertisers
1 A user conducts a search
Based on the query, a series of
advertisers are triggered to appear
3
Based on an advertisers bid and
relevancy, the search engine
algorithms determine which ads to
serve
Advertisers only pay when
their ad is clicked

8. How is Ad Positioning Determined?
Max Bid
Quality
Score
Ad Rank
How much an advertiser is
willing to pay for a keyword
A score Google gives each
keyword based on various
factors, but the main one
being relevancy
Where exactly an ad appears
on the search results page
Quality Score is critical because the better score a
keyword receives, the less an advertiser has to
pay in order to win an auction and maintain top
positioning on the SERP

9. Leveraging Match Types For Better Results
Exact Match Phrase Match
Broad MatchAny query
containing the
phrase “levi bold
curve”“Levi bold curve”
• Queries containing ANY of the
keywords (in any order)
• Singular & plural forms,
synonyms and close variations
included
Negatives
“font”
“levi bold curve cut”
“Levi bold” “levi jeans” “bold curve”
Query matches exactly what
advertiser is bidding on
Queries the brand does not
want to be associated with

10. SEM targeting allows for tailoring messaging to a
query where and when it occurs
1
0
• Time of day or day of week
Day Parting
• Desktop, tablet, smartphone (including operating
system)
Device
• Country, State, DMA, city and zip code
Geo Target
• Cross-sell; upsell; serve sequential messaging
Retargeting
• Search engines consider the default language in the
browser and language used in the query
Language

11. Optimizations & Best Practices
Pacing
• Daily pacing according to authorized budgets and campaign flight
• Maintaining highest level of efficiency at the lowest cost
Bid Optimizations
• Keyword efficiency is measured based on CPC, CTR and CPA
• Bids are optimized to meet keyword efficiency threshold
Ad Copy Refresh
• Ad copy is optimized based on CTR and CPL
• New ads are added to the rotation to in an effort to drive actions efficiently
Use of Extensions
• Utilize ad extensions to increase performance and visibility on search engine results pages
Monitoring of Search Query Reports
• Show the actual search terms that were paired with the different keywords and match
types to trigger your ad
• Assist in keyword expansions of relevant terms, and define negatives to be added to the
account

12. Increase Performance with Search Extensions
Sitelinks:
Enables deep links and drives an average CTR lift from 15-30%
App Extensions
Show a link below your ad text that sends people to the app
store or begins downloading your app
Call Extensions
Let people click a button to give you a phone call
Consumer Rating Annotations
Show off what customers appreciate with high-quality survey
data
Review Extensions
Showcase positive, third-party reviews from reputable sources
Location Extensions
Help people nearby find your nearest storefront or give you a
call

13. What Else Should
You Know?

14. Search Engine Market Share
67.60%
28.70%
2.40% 1.30%
Google
Yahoo! | Bing
Ask Network
AOL, Inc.
As of January 2014:
Google takes up 67.6% of U.S. Market share
Bing/Yahoo! held 28.7%
3.7% was dedicated to 2nd Tier Engines
*Source: Comscore, January 2014

15. Source: www.solvater.com Source: www.globalmarketexposure.com
Advertisers can access Google and Bing’s network of search
partners (syndicated search) to gain additional reach

16. SEO & SEM Synergy
• Collaborating SEO and SEM on average
results in 79% incremental clicks over
running only organic search*
• Only 21% paid media clicks would displace what
could be organic traffic
• SEM and SEO are complementary
disciplines that can benefit each other to
increase conversion rates and share of
voice
• Insights gained when buying pay per click
(PPC) keyword ads can positively impact
SEO initiatives, while natural search
queries and click path data can, and
should, influence keyword bidding.
21%
Displaced Ad Clicks

17. Current Trends

18. Advertisers Continue to Increase Digital Budgets
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
2012 2013 2014 2015 2016 2017 2018
Spend(Billions)
US Digital Ad Spending, by Format
Search
Display
Digital video
Desktop total
Mobile total
*Source: Nomura Securities, "Americas Media & Internet," Feb 12, 2014
According to a study released by Nomura Securities in February, overall digital
spending is expected to increase by 63% by the year 2018
Search spending alone has increased by between 15-20% per year for the last
4 years, a trend expected to continue for the years to come

19. Mobile Search Reshapes the Path to Purchase
With a mobile revolution under way, the desktop is finding a long-term home
as a piece—but no longer the center—of the consumer journey.
Key to the future of desktop search is understanding how it will be
informed by mobile usage in terms of design and measurement
Marketers Future Challenge:
To invest in a marketing mix that gives
consumers what they need on mobile, and
ultimately re-targeting them across device
in a consistent format
According to E-marketer, desktop search
is expected to decline $1.4 Billion as
Google Users Shift to Mobile