Ist402 Google Marketing Challenge V02

The Quiz!

1. What is a visitor to your Website worth?

2. When a visitor comes to your Website, what do you want them to do?

Each visitor has both potential costs and benefits – dollarize each visit!

The goal of each visit is some type of convert.

The Quiz!

3. How would a potential visitor find your Website?

4. What would bring a potential visitor to your Website?

75 percent of people use search engines as an entry point (Nielsen)

Expression of a need - informational, navigational, transactional. (Broder 2000)

The Quiz!

5. What sites are your Website’s competitors?

These sites are also dollarizing each visit, trying to convert each visitor, leveraging search, and trying to bring visitors to their Website!

Part of your overall campaign to achieve these goals should be sponsored search (a.k.a, keyword advertising)!

Sponsored Search

Jim Jansen

College of Information Sciences and Technology The Pennsylvania State University

[email protected]

The Power of Search and the Web

Sources: comScore, U.S., Feb. ’06, Stanford Institute for the Quantitative Study of Society, Nov. ‘05

• Search is the top online activity

• Search drives over 5 billion monthly queries in the U.S.

• Online activity has a huge impact on people’s daily lives:– 70 minutes less with

family

– 30 minutes less TV

– 8.5 minutes less sleep

Analysis of Search Marketplace comScore Core Search Report* July 2008 vs. June 2008 Total U.S. – Home/Work/University Locations Source: comScore qSearch 2.0

Share of Searches (%)

Core Search Entity Jun-08 Jul-08

Point Change

Jul-08 vs. Jun-08

Total Core Search 100.0% 100.0% NA Google Sites 61.5% 61.9% 0.4 Yahoo! Sites 20.9% 20.5% -0.4 Microsoft Sites 9.2% 8.9% -0.3 Ask Network 4.3% 4.5% 0.2 AOL LLC 4.1% 4.2% 0.1

* Based on the five major search engines including partner searches and cross-channel searches. Searches for mapping, local directory, and user-generated video sites that are not on the core domain of the five search engines are not included in the core search numbers.

Top Global Web Properties Ranked by Total Unique Visitors (000)* May 2008

Total Worldwide, Age 15+ - Home and Work Locations Source: comScore World Metrix

Property Total Unique Visitors (000)

% Reach

Google Sites 643,809 75.5 Microsoft Sites 572,016 67.1 Yahoo! Sites 514,831 60.3

Wikipedia Sites 263,120 30.8 AOL LLC 252,394 29.6

eBay 247,791 29.0 Fox Interactive Media 169,301 19.8

Amazon Sites 159,281 18.7 Apple Inc. 140,380 16.5

CNET Networks 133,480 15.6 Ask Network 127,769 15.0

FACEBOOK.COM 123,851 14.5 Adobe Sites 107,361 12.6

Time Warner - Excluding AOL

98,000 11.5

WordPress 96,394 11.3 Viacom Digital 86,546 10.1 Baidu.com Inc. 80,201 9.4 TENCENT Inc. 77,885 9.1

Glam Media 77,391 9.1 New York Times Digital 77,172 9.0 * Excludes traffic from public computers such as Internet cafes

and access from mobile phones or PDAs

Analysis of Online Traffic

The Power of Sponsored Search

• Online advertising $ are increasing faster than

any other medium.

• The search model is aligned with the consumer

need – pull vs push • Lowest acquisition cost of any medium – online

or offline• Low barriers to entry – cost, bias, knowledge

Sponsored Search

• Web search engines require significant revenue streams! to support the free access that these search engines provide every day to millions of customers.

• Primary business model for these search engines is sponsored links, which entities pay for.

• These sponsored links appear on search engine results pages when users enter certain key phrases as queries.

• The search engines provide the overall mechanism for this sponsored search process to occur.

• Sponsored search is a multi-billion industry. AOL, Google, and Yahoo! receive substantial portions of their revenue from sponsored search.

Analysis of Online Advertising• Keyword advertising, the fastest growing advertising medium. • Revenue base for major search engines such as Google and Yahoo!, as well as many content-based Web sites. • In 2007, Google earned $16.4 billion; more than 90% of this revenue came from keyword advertising (Google 2007).

Sponsored Search Elements

1. Provider 2. Provider Content 3. Provider Bids

4. Search Engine 5. Search Engine Review Process 6. Search Engine Keyword and Content Index 7. Search Engine User Interface 8. Search Engine Tracking

9. Searcher

Jansen, B. J. and Mullen, T. (2008) Sponsored search: An overview of the concept, history, and technology, International Journal of Electronic Business.

The Sponsored Search Process

Non-sponsored results

Sponsored results

keywords control bids

Similar functionality on all major platforms

Business Relationships

bruceclay.com - Search Engine Relationship Chart®

http://www.bruceclay.com/searchenginerelationshipchart.htm

GOOGLE ONLINE MARKETING CHALLENGE

OVERVIEW

19

Jamie MurphyDepartment of MarketingBusiness SchoolUniversity of Western [email protected]

Lee HunterProduct ManagerGoogle [email protected]

What is it?• Background

• Collaborative partnership between Google and Academics

• Timeline• Fall 2007

o Professor-only Beta Competitiono Beta trials in two classeso Announcement on ELMAR and a few other

lists• Spring 2008: “Soft Launch”

o 8,000+ students from 47 countries participated

o Feedback from students, professors and client businesses

• Overview• Student teams receive $200 credit for AdWords and

work with local businesses to devise effective online marketing campaigns

• Student teams submit two written reports

Basic Steps1. Professor registers their class or student organization2. Students recruit a local business client3. Students develop and submit pre-campaign proposal4. Students run a 3 week AdWords campaign5. Students develop and submit a post-campaign summary6. Google judges teams on a proprietary algorithm7. Academics judge teams on written reports8. Ten winners flown to Google Headquarters

• Global winner• Three regional winners

(Americas, EMEA, Asia Pacific)• Six regional finalists

(Americas, EMEA, Asia Pacific)

(See student blog at http://www.itmilk.com/2008/09/15/googleplex-trip-day-1/)

Winner of the Americas Region!

The Scoring Algorithm• Did not want to just look at performance

• Final algorithm incorporates 30 different signals in 5 categories• Performance • Account structure• Tool and feature usage• Advertiser savviness• Budget management

• Worked with focus groups to determine initial signals, thresholds, and weights

• Google AdWords Account Optimizers, Managers and Engineers

• Validated and refined algorithm using Beta competition groups• Numerical results from the algorithm compared to qualitative ratings

given by Google Account Optimizers

22

Score

Scoring Results: Histogram of Scores

• 1,620 student groups were scored

• Results close to normal distribution

• Needed to narrow down to 150 for manual scoring by Google experts

Mean: 11.4

Median: 9.5

Min: 0.3

Max: 27.1

Std Dev: 4.8

Thank you!

Jim Jansen

College of Information Sciences and Technology The Pennsylvania State University

[email protected]