ONLINE MARKETING 101 SEARCH ENGINE MARKETING (SEM)

ONLINE M

ARKETING

101S E ARC

H E

NG

I NE M

ARK E T I N

G

( SEM

)

SEARCH ENGINE MARKETING

• What am I?

• Where can you find me?

• When do you see me?

• Who created me?

• Why do I exist?

• How do I work?

WHAT: ANATOMY OF AN AD

• Components•Headline• Lines 1 & 2•Display URL•Destination URL

• Restrictions• Character Limits• Punctuation

WHERE: SEARCH ENGINES

• Google

• Yahoo!

• Bing

WHERE: SEARCH ENGINES

• Google

• Yahoo!

• Bing

WHERE: SEARCH ENGINES

• Google

• Yahoo!

• Bing

• Determined algorithmically• Based on CPC and Quality Score (CTR, history, relevance, quality)

• Match types• Exact• Phrase• Broad (and Broad Match Modifier)•Negative

WHEN: RELEVANT SEARCHES

http://adwords.google.com/support/aw/bin/answer.py?hl=en&answer=6100

• Ad Agencies• RKG, iProspect, eFrontier• Charge a fee to manage ads

• In-House teams• Usually a subset of Marketing team• Usually report to CMO

WHO: AD AGENCIES & IN-HOUSE TEAMS

WHY: SHOULD I PUT MY MONEY HERE?• Moneymaker!•Google revenues in 2009: $23.7b• In 2010: $29.3b• First 3 quarters of 2011 (unaudited): $27.3b

• …Even in a down economy• Proven ROI•While spending on TV & print decreased, online advertising expenditures increased

http://investor.google.com/financial/tables.html

HOW: THE AUCTION PROCESS

• Instantaneous• Factors in aforementioned metrics (CPC, Quality Score)• Also takes into account…• First page minimum bid•Geographic targeting• “Real estate”

http://adwords.blogspot.com/2009/03/introduction-to-ad-auction.html

BELLS AND WHISTLES• Ad Extensions• Product Extensions• Seller Ratings• Sitelinks• Location Extensions• Social Extensions

• New Ad Formats• Product Listing Ads• Click to call (and bid-per-call)• Dynamic Search Ads

http://www.google.com/ads/innovations/search.html

SEM & SEO

• Look similar• It seems that Google makes more money by making SEM ads look more like SEO natural results

• Work together – not against each other• Effective marketing programs use these to complement each other• It’s possible to look at search logs for each to find missed opportunities with the other

http://www.rimmkaufman.com/blog/a-more-%E2%80%98organic%E2%80%99-experience-part-ii/20092011/

PERFORMANCE & EVALUATION

• Fake data (Excel spreadsheet)• Examine raw numbers• Compute performance metrics• Analyze efficiency

• Evaluate different targets•Different clients judge efficiency differently• Targets include A/S, ROI, CPC, etc.