Search Engine Marketing Salford Business Showcase | 8th October 2009 Dr Aleksej Heinze Search Engine Marketing Management lecturer Salford Business School [email protected]0161 295 5024 www.business.salford.ac.u k 1 Simon Wharton Managing Director PushON Ltd [email protected]0844 967 0565 www.pushon.co.uk
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Search Engine Marketing
Salford Business Showcase | 8th October 2009
Dr Aleksej HeinzeSearch Engine Marketing Management lecturerSalford Business [email protected] 0161 295 5024
www.business.salford.ac.uk1
Simon Wharton Managing Director PushON [email protected] 0844 967 0565
– LEAD Programme www.business.salford.ac.uk/LEAD/– Institute of Directors (IoD)www.business.salford.ac.uk/iod/– Management and Leadership Toolkitwww.business.salford.ac.uk/academicenterprise/mlt/
• Knowledge Transfer Partnerships– www.ktp.salford.ac.uk
UK Households: 65% had internet access in 2008(National Statistics, 2008)
National Statistics (2008) Internet Access - 65% of households had access in 2008, accessed from http://www.statistics.gov.uk/CCI/nugget.asp?ID=8&Pos=1&ColRank=1&Rank=192PricewaterhouseCoopers. (2008). Ninth Information Security Breaches Survey: Department for Business, Enterprise & Regulatory Reform (BERR), accessed from www.security-survey.gov.uk
UK Businesses: 97% have a broadband internet connection 93% have a corporate website. (PricewaterhouseCoopers, 2008)
• First half of 2009 • BBC 30th September 2009 available from
http://news.bbc.co.uk/1/hi/business/8280557.stm
What is the future? The PayPal UK Online Retail Report forecasts
that from 2008 to 2011:• UK online retail spend is forecast to more than
double: from £9.1 billion to £21.3 billion by the end of 2011
• Shoppers are expected to spend at least one in every 14 pounds online by 2012
• Source: PayPal’s UK Online Retail Report, conducted by Experian (2009) Accessed online: https://www.thepaypalblog.com/2009/06/paypal-uk-online-retail-report/
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More search only equates to more frustration for consumers• Levels of search volume are standing at an all-time high • But consumers are now having to search harder and more often to
find what they want• AdWords service changed in May 2008 by allowing non-trademark
owners to bid on trademarked terms in the UK and Ireland• Brand owners appear to be very poor at getting themselves to
the top of searches
Source: Internet Quarterly - UK - September 2008
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Difference SEO vs SEMM
SEO SEMM
Measure Website traffic Goal conversion
Feature Organic SEO and Pay-Per-Click SEO
Integrates SEO with offline marketing communications
•Search behaviour•Website usage•Capture E-mail address and contact details•Provide valuable content
Internet/online/ e-marketing
Model for decisions on advertising
• Widget AdWords Pay Per Click costs £500• Average margin for you = £500
• If we get 10 enquiries from this ad and 2 sales (20% conversion rate):
• Cost per enquiry = £500 / 10 = £50• Cost per sale = £500 / 2 = £250• “Net” Margin = £1,000 - £500 = £500• ROI = £500 / £500 x 100 = 100 %
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Customer Life Time Value
• Measure the value of a customer and estimate their lifetime value
Average Transaction ValueX
Number of transactions per yearX
Number of Years 17
Customer Life Time Value (CLTV) Example
It is now !!! Even one year is worth £1,000 for a £100 ad
• CLTV = £4 x 10 times pa x 5 years = £200• For the 25 customers that’s £5,000 for £100 ad spend
Not worth doing?
• Theatre Company AdWords in Pay Per Click £100• Average margin for you = £4
• If we get 50 enquiries from this ad and 25 sales (50% conversion rate):
• Cost per enquiry = £100 / 50 = £2• Cost per sale = £100 / 25 = £4• “Net” Margin = £4 - £4 = £0
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Activity 2: List your marketing activities and estimate/calculate their ROI and CLTV
Activity ROI CLTV Set Budget Set Goal
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How to measure your website’s performance?
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Search engines• Essentially are permanently switched on
calculators
• Bots or program scripts constantly visit web pages and evaluate them
• Bots “sort” pages that they come across
• Once a page has been visited it is – a) added to the index server – similar to the index
page of a book – b) a cash or a snapshot of the page is taken
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Keeping Consumers Connected - UK - September 2008 – Google ís The WinnerFigure 20: How often consumers use search engines, by frequency, July 2008
Yahoo! Google MSN Other
% % % %
Any users 83 99 66 48
Use the most 9 79 4 3
Use sometimes 45 17 33 20
Used more in the past, but not so much now 28 3 29 25
Have never used 17 1 34 52
Base: 2,000 internet users aged 16+
Source: GMI/Mintel 22
The Google analysis • Google uses over 200 variables to determine
position of any one web page• PageRank™ algorithm (based on link structure of the
web)• Hypertext-matching analysis are determining
which pages (not sites) are relevant to the specific search
• Individual web page position is calculated by combining – a) overall importance of the page (PageRank) and – b) query-specific relevance to the search (Hypertext-matching
analysis)
• Other search engines followed and developed similar algorithms
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Measure you website now?• Google Analytics - www.google.com/analytics/ • Seoquake - www.seoquake.com • SEOBook toolbar - http://tools.seobook.com/seo-toolbar/• and many others….
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Compare sites• SEO Book
toolbar
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Activity 3 – Using the SEObook toolbar, evaluate the web site Site name PRank Internal links External links Site age
•What does this analysis indicate to us?•What can we do to improve? 26
Workshop summary• SEO/ SEMM is increasingly important• Use SEO/ SEMM in combination with other • A number of tools to measure your website
performance• Be careful when selecting agencies • Management training courses:
Bibliography• Brin, S., & Page, L. (1998). The anatomy of a large-scale
hypertextual Web search engine. Computer Networks and ISDN Systems, 30(1-7), 107-117
• Jones, K. B. (2008). Search Engine Optimization. Indianapolis, IN, USA: Wiley Publishing.
• Walter, A. (2008). Building findable websites: Web Stanards, SEO and beyond. Berkeley, CA, USA: New Riderers.
• Harald Weinreich, Hartmut Obendorf, Eelco Herder, and Matthias Mayer: "Not Quite the Average: An Empirical Study of Web Use," in the ACM Transactions on the Web, vol. 2, no. 1 (February 2008).
• Forrester, B. (2009) Marketing Mix and Customer Life Time value matrix notes from the Search Engine Marketing Management course. Salford Business School, Salford, UK