02 pruitt optimization2008
TRANSCRIPT
Search Engine Marketing (SEM) Trends and The Future of Search in North America
Ashmanov and Partners Conference 2008
Jeffrey PruittiCrossing Executive Vice President, Search
SEMPO President
“Search and Search Engines are the collective
consciousness of today’s World giving equal access to
anyone, anywhere.”
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Internet Connection: Anyone, Anywhere at Anytime
Agenda
• A New Digital Paradigm for Brand Success
• Search: Past and Present
– Search Marketing Statistics
• Search is Evolving
– Digital Asset Optimization
– Performance Media
• Digital Agencies
– How organize for trends in search
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Network of Human Beings
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Brands need a new model to be successful
Creating connected brands.
Brands must be aware of their world - using
their “senses” to understand their
environment, especially their
customers.
Brands must live in their
networks, always-on, agile and adaptive –
they must participate and
engage with their customers.
Brands must behave in ways
that are authentic, and
earn the trust of it’s customer.
Brands must contribute to
their networks, providing tools
and content that are relevant.
Aware Active TrustedUseful
Agenda
• A New Digital Paradigm for Brand Success
• Search: Past, Present & Future
– Search Marketing Statistics
• Search is Evolving
– Digital Asset Optimization
– Performance Media
• Digital Agencies
– How organize for trends in search
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Source: eMarketer,,US Online Advertising Spending,Report, October 2008
0
5
10
15
20
25
2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011* 2012*
Sp
en
din
g (In
bil
lio
ns)
Year
Search
Display
Classified
Rich Media
$3.85b (38%)
$10.78b(42%)
U.S. Online Advertising SpendingTotal Dollars in Billions by Format, 2001 - 2012
* Projected
PAST $19.65b(47%)
FUTURE
$0.25b(3%)
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Source: eMarketer,,US Online Advertising Spending,Report, October 2008
-50%
0%
50%
100%
150%
200%
250%
300%
2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011* 2012*
Year-O
ver-Y
ear
Ch
an
ge (P
erc
en
t)
Search Display Rich Media Email
U.S. Online Advertising SpendingYear-over-Year Percent (%) Change by Format, 2001 - 2012
PAST FUTURE
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U.S. Advertising SpendingTotal Dollars in Billions by Media Type, 2001 - 2007
$0
$10
$20
$30
$40
$50
$60
$70
2001 2002 2003 2004 2005 2006 2007
Sp
en
din
g (In
bil
lio
ns)
Internet*
Radio
Outdoor
Magazine
Newspaper
Television
* Internet includes yearly totals for Display, Paid Search and Natural SearchSources: eMarketer,,US Online Advertising Spending, Report, October 2008;
TNS Ad Spending by Media Report, 2001 - 2007
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U.S. Advertising SpendingYear-over-Year Percent (%) Change by Media Type, 2001 - 2007
* Internet includes yearly totals for Display, Paid Search and Natural SearchSources: eMarketer,,US Online Advertising Spending, Report, October 2008;
TNS Ad Spending by Media Report, 2001 - 2007
-10%
0%
10%
20%
30%
40%
50%
60%
2001 2002 2003 2004 2005 2006 2007
Ye
ar-o
ve
r-ye
ar
ch
an
ge
(p
erc
en
t)
Internet*
Radio
Outdoor
Magazine
Newspaper
Television
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Annual Advertiser Spend ForecastBy Vertical, 2007-2012
Source: Forrester U.S. Interactive Marketing Report, 2008
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Organic SEO Most Popular of SEM ProgramsBy Advertiser Respondents, 2004-2007
Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers, December 2005. Global Results. Copyright © 2005
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006 2007
Ad
vert
isers
En
gag
em
en
t (P
erc
en
tag
e)
Year
Organic SEO
Paid Placement
Paid Inclusion
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Rank
2006 2005
Agency Headquarters SEO/SEM Revenue
2006 2005
Percent Change Number of Employees
1 2 iCrossing New York $63m $46m 37% 350
2 7 Avenue A Seattle $30m $12m 156% 1800
3 5 360i New York $28m $19m 48% 175
4 NA Website Pros Florida $25m NA 22% 700
5 NA DoubleClick/Performics
Chicago $24m NA 58% 242
6 NA Leapfrog Illinois $21m NA NA 85
7 6 Efficient Frontier California $20m $13m 96% 140
8 3 iProspect Boston $16m $23m - 30% 115
9 8 Impaqt Pittsburg $14m $11m 18% 87
10 10 Acronym Media New York $12m $10m 20% 65
Top 10 Search Marketing Agencies2005-2006
Source: Advertising Age DATA Center, Top Search Marketing Agencies Fact Pack, 2006, 2007
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Current Economic Condition
“91% are using online advertising, and over one-half (+50%) indicate that their companies plan to maintain or exceed current levels where possible”
Source: eMarketer, U.S. Online Advertising Spending, Report, October 2008
“55% of marketers said they’re cutting expenditures on traditional media, precisely in order to increase funding for online efforts”
According to a McKinsey & Co. survey of 340 senior marketing executives worldwide…
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Current Economic Condition
The Internet…• Is inherently more measurable and
accountable than are traditional channels
• Allows for better, more-granular targeting
• Is interactive, thereby allowing for a higher degree of engagement
• Is accounting for a larger share of total media time
• Plays into the consumer-in-control movement
• Provides marketers with the potential to gain rich insights into consumer behavior
• Allows marketers to reach prospects throughout the entire consumer buying cycle
“In the recession of 2009, marketers will be making cuts almost across the board, and will seek safe harbors and cost efficient alternatives.”
- Jack Myers,
Media Business Report
Source: JackMyers Media Business Report, October 13, 2008
What is behind the bullish projections for online ad spending?
Agenda
• A New Digital Paradigm for Brand Success
• Search: Past and Present
– Search Marketing Statistics
• Search is Evolving
– Digital Asset Optimization
– Performance Media
• Digital Agencies
– How organize for trends in search
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Google Universal and Ask3D
Search engines are now integrating multiple media types in the results pages, including:
– Video– News – Blogs– Images– Maps
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Google Universal Search and Video Ads
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Search and Social Impact
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Purpose of Search Engine Marketing Use
"What is your company using search engine marketing to accomplish?"
Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers
Brand, Sales, Leads and Traffic Are Top Objects of Paid Placement Programs Among Advertisers
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Methodology: Testing the Brand’s Placement
1. Control• (No branding: “Honda” does not appear on the SERP)
2. Side Sponsored• Honda appears in side sponsored result only
3. Top Organic• Honda appears in top organic result only
4. Top Sponsored• Honda appears in top sponsored result only
5. Top Sponsored and Top Organic• Honda appears in both top Sponsored and top organic
results
Subjects entered an unbranded query and saw one of the following search engine results pages (SERP):
Source: Enquiro Search Solutions, Inc., July 2007.
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A 2.2x Lift in Aided Brand Recall When Brand Is in Top Sponsored and Top Organic Results
Which of the following brands do you remember seeing in the search results page you just viewed?
Side Sponsored
TopSponsored
Top Sponsored & Top Organic
Top OrganicListing
2.2x
1.5x
x
Test Brand
Other0%
10%
20%
30%
40%
50%
60%
70%
Source: Enquiro Search Solutions, Inc., July 2007.
Query: Unbranded (i.e., “fuel efficient cars”)
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Advertising Platforms
• Ad Platforms include: Panama, Google Adwords, AdCenter
• The digitization of all content will lead to new advertising methods across multiple forms of content.
• Advertising platforms will be utilized to manage cross channel campaigns “Performance Media”
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Buying Search and Contextual Ads (past)
Media Buyer
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Buying Search and Contextual Ads (present)
AP
I
Bid Management
ToolMedia Buyer
AP
IA
PI
Examples:• - Blondinka.ru• - SmartContext.ru• - iCrossing’sMerchantize
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Buying Display Ads (today)
Media Buyer
Ad Network
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Buying Display Ads is about to get easier!
AP
I
3rd Party AdManagement
& Serving Tool
Yahoo - RightMedia
AP
I
Google - Doubleclick Network
AP
I
Microsoft - AdECN
Networks, Exchanges and APIs
Media Buyer
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+
AP
I
Cross MediaBid/Buy Tool
Media Buyer
AP
IA
PI
3rd Party AdManagement
& Serving Tool
Bid Management
AP
IA
PI
Ad Exchanges
=
RadioTVPrint
DisplayVideoExchanges
Search
Performance MediaBuying Search, Contextual, Display Ads & Video
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One Stop Shop for all Search Driven Media
Ad Networks | Ad exchanges
API’s
Bid Management System
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Performance Media(CPA/CPC)
Convergence of Search and Display
Search DisplaySite Targeting
Contextual
Exchanges
PAST Branding(impressions/CPM)Performance
BrandingNOW
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DOVE Campaign Assets
Click to Play Video
Flash Banner
Text Ad
Source: comScore / Nielsen NetRatings
®
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DOVE Nielsen//NetRatings: Sales Impact
• 96% new buyers entered the Total Brand
• +25% more dollars spent on the Total Brand
• Incremental dollar impact to the Total Brand was significant, (for every $1.00 invested with Google, consumers spent an incremental $1.43)
$$ $
Source: comScore / Nielsen NetRatings
®
Agenda
• A New Digital Paradigm for Brand Success
• Search: Past and Present
– Search Marketing Statistics
• Search is Evolving
– Digital Asset Optimization
– Performance Media
• Digital Agencies
– How organize for trends in search
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Program Management
ResearchExperience
PlanningOptimize Advertise
Integrating the digitization of all content
PROGRAM MANAGEMENT
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Digital Agency Strategic Model
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Multi-Channel Reporting
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Multi-Channel Conversion Funnel
“ The digitization of all content will lead to new
advertising methods across multiple forms of
content. As the Engines develop these new products
and media types, it is imperative that Search Engine
Marketers stay in lock step with the engines in our
technology integration and service line expansion ”
Jeffrey PruittExecutive Vice President, iCrossing
President, Search Engine Marketing
Professional Organization (SEMPO)
1.480.505.5807 direct
1.602.430.0640 mobile
iCrossingwww.icrossing.com
SEMPOwww.sempo.org
Thank you