Presentation: What Are The Top 5 Emerging Search Categories and Why?
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For years paid search has been dominated by retail financial and travel, but a few new categories have moved in to shake things up a bit in 2012. During this session, we'll examine the categories experiencing the highest percentage of year-over-year growth in paid search spend. We'll also look at trends in the number of advertisers, impressions and clicks in each to determine the industries that will excel in 2013 and beyond. The panel will provide practical recommendations and action items to help better contend with increasing competition. Presenter: Richard Stokes, CEO, AdGooroo
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Presentation: What Are The Top 5 Emerging Search Categories and Why?
- 1. What are the Top 5 Emerging Search Categories and Why? Richard Stokes CEO, AdGooroo.com @AdGooroo
- 2. AdGooroo – A Leading Provider of Search Intelligence • AdGooroo founded the More than 4,000 users, including: Search Intelligence industry in 2004 • Global scale across 50 countries, 14 search engines and 920,000 search advertisers • Why AdGooroo? Our clients are three times more likely to be seen on the search engines than their top 20 competitors 2
- 3. Methodology • Start with $100M+ of known ad spend • Combine with various sources of objective search data (“occurrences”) – Millions of terms – Billions of impressions • Utilize machine learning techniques to produce component models • Combine component models to produce spend model * Many steps omitted!
- 4. Methodology CTR Model Known Data Estimated CTR Model Spend Occurrence Data CTR Model
- 5. Why Do We Care? • US AdWords spend flat for the year – Desktop (not mobile) • Some categories are booming • Invaluable information for agencies • Advertisers in these industries can profit by emulating more successful competitors
- 6. #1 – Online Education • Estimated Spend: – 2011: $87M – 2012: $196M – Increase of $108M (223%) • # of Advertisers: Up sharply • CPC prices higher in 2012
- 7. Who Are the Big Players?
- 8. WaldenU.edu • Campaign Strategy – Online classes – Specific careers • Highly targeted • High CTRs: 6-8%!
- 9. #2 – IT Solutions and Services • Estimated Spend: – 2011: $49M – 2012: $109M – Increase of $59M (220%) • Flat in 2010-2011 • Explosive growth in 2012
- 10. Who Are the Big Players?
- 11. More Opportunities on Bing
- 12. SAP.com • Campaign Strategy – CRM – Analytics – ERP
- 13. #3 – Internet Marketing Services • Estimated Spend: – 2011: $18M – 2012: $45M – Increase of $27M (250%!) • Significant growth in 2012 • # of advertisers has doubled since 2010
- 14. Share of Voice
- 15. Commonalities • Most are targeting SMBs • High churn means the marketing funnel must be constantly filled • High acquisition costs – CPCs vary, but most are in the $3-6 range – Some keywords as high as $25
- 16. Creative Survey
- 18. 20% of Paid Clicks Coming From Bing
- 19. #4 – Pharmaceuticals and Supplements • Estimated Spend: – 2011: $121M – 2012: $181M – Increase of $60M (150%) • # of advertisers has doubled since 2010
- 20. Higher in 2012 but Trending Down
- 21. Notice Something About the Top 10?
- 22. Targeting Varies By Subcategory • Prescription drugs – Symptom-based minisites offer better traffic opportunities – Higher impressions, lower CTR – Cholesterol-info.net – Managingmybloodpressure.com • OTC drugs and supplements – Brand name sites offer better traffic opportunities – Lower impressions, higher CTR – Offline advertising support critical to drive traffic – Claritin.com – Viagra.com
- 23. #5 – Home Improvement • Estimated Spend: – 2011: $105M – 2012: $145M – Increase of $40M (138%)
- 24. Category Dominated by Two Advertisers $7-10M spend #3: $580k spend
- 25. Ditto for Bing $915k spend $423k spend $25k spend
- 26. Highly Seasonal Category Most spend occurs in March - August
- 27. What Drives Traffic In This Category? Highly fragmented but ~30% comes from a few categories
- 28. Takeaways • Paid Search campaigns benefit heavily from offline branding efforts • Most categories exhibit differences in – Campaign strategies – CPC ranges – Successful tactics – Possibility for cross-engine or international campaigns – Seasonality – Targeting • You need to understand the dynamics of your category if you expect to succeed
- 29. Want to Learn More About How Competitive Intelligence Can Help Your Paid Search Campaign? Website: www.AdGooroo.com Phone: 312-205-4260 Email: rich@adgooroo.com Twitter: @adgooroo P.S. We’re hiring! THANK YOU!