1 Balancing Paid and Organic Peter Hershberg, Managing Partner SES San Jose, August 10, 2006.

1

Balancing Paid and Organic Peter Hershberg, Managing PartnerSES San Jose, August 10, 2006

Today’s Agenda

• Overview of Paid & Organic

• Complementing Models

• Examples of Effectively Balanced Search

• Analytics As A Bridge  

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Organic Search Results

75%Roughly

of reply page clicks

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Benefits of Search Engine Optimization

Impartial Endorsement

Long Term Solution

Front-loaded Cost

Huge Impact on Site Traffic

5

Paid Search

6

Benefits of Paid Search Marketing

Control Messaging/Placement

Change Messaging on Demand

Broad Distribution

Performance Pricing

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Paid and Organic: Complementary

OrganicLasting Impact

Engines decide your placement

Credible resource

Costs defined on a page or project basis

Bulk of investment during initial setup

Paid Immediate Results

You control content and placement

Commercial Distribution

Costs defined by click volume and competition

Investment varies according to campaign

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Why do them both?

5 out of 6consumers don’t understand the

difference between paid and unpaid

listings

They just click on what seems most relevant

Source: Consumer Reports Web Watch Report “Searching for Disclosure”

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Paid Search Enhances Organic Listings

Source: MarketingSherpa Inc., IT Marketing Metrics Guide

Top Listing in Both Paid and Organic Will Receive More Clicks

60

10

20

0

10

20

30

40

50

60

70

Top Listing in P aid and Organic Top Listing in P aid Top Listing in Organic

Potential Clicks per 1,000 Impressions

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Examples of integration

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Day 0

The Life Cycle of a News Story

Day 1 1 Week

Published… Blogged… Searched!

Paid Search

Contextual Organic Search

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Publishing

13

Publishing

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Retail

15

Entertainment

16

Entertainment

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Entertainment

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Analytics

Key to integration

Optimize against top paid performers

Use organic results to refine keyword list

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Thank You!