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Scalable SMB Search Marketing Reducing OPEX Through Automation
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About TSA
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The Search Agency – Overview • Overview
– Founded: 2002 – Headquarters: Los Angeles, CA – Deep Experience in Subscription-Based
Business, Continuity and Direct Response, IYP/Reseller
– Series A investment in May 2008 - JMI Equity http://www.jmiequity.com/news-events/article/the-search-agency-announces-strategic-investment-from-jmi-equity/
• Locations
– Los Angeles, Providence RI, San Francisco, Baltimore, Tampa, Houston, Toronto CA, London UK, Bangalore India, Sydney AU, Tokyo JP
• Size
– Largest independent SEM agency in USA – Adage estimated revs $25.9M, 27% CAGR
• Product Mix (by revenue) – Paid Media (Search & Display) – 55% – Organic Search – 28% – Consumer Experience – 8% – Social Media/Mobile – 9%
• Advertising Councils – Member of Google, Yahoo! and Microsoft
Advertiser Councils – Regular Google Beta partner – Yahoo! Elite Technology Partner (1 of 4) – One of 3 alpha partners of Facebook Ads API – Beta partner on Facebook Exchange (FBX)
• Services – Paid Search/Search Engine Marketing (SEM) – Search Engine Optimization (SEO) – Landing Page Optimization – Conversion Path Optimization – Biddable Display Media – Search Retargeting – Reputation Management – Social Media – Integrated Online Marketing Strategy
• Visit – US Website: www.thesearchagency.com – Blog: www.thesearchagents.com
3 P r o p r i e t a r y a n d C o n f i d e n t i a l
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AdMax Local
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• Scalable, enterprise solutions for 4 years in EU, USA and APAC
• Hundreds of thousands of websites created
• Tens of thousands of SEM campaigns under management
• OPEX reductions of up to 90% through automation
• 500-1,000 campaigns per account manager
• Advertiser retention well above competitive benchmarks
• Newly launched SaaS version greatly reduces integration costs and time to market
• “Taking orders for 2013”
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Reducing OPEX Through Automation
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>$1,000/mth
<$1,000/mth
“Long Tail” of SME Budgets
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– Labor intensive “Agency” models adopted by IYPs/resellers cannot scale
– High labor costs make it difficult for IYPs to serve all of their customers profitably, limiting revenue, and creating long term challenges
– Automation can deliver significant cost savings for the reseller while creating superior
outcomes for merchants
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“Agency” Platforms
Labor intensive “Agency” Platforms are designed for large national advertisers and built primarily around ongoing service fees
1. Agency models use labor not technology as their unique selling proposition
2. High spend levels allow labor costs to be spread across campaigns
3. Query volatility and volume require frequent monitoring and adjustment
4. Competitive market segments require intensive ongoing analysis and optimization
Labor Intensive
Customer Reporting
Keyword Research
Traffic Estimation
Account Set-up Ad Creation
Landing Page
Creation
Budget Management
Keyword optimization
Ad Optimization
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Automated Platform Models
Automated SEM platforms are designed to service thousands of SMBs of all sizes using technology to replace labor intensive agency models
1. Automated platforms reduce labor costs by 80-90% and automate serial actions
2. Automation supports cost effective management of low ad spend levels
3. Pre-compiled campaigns function well in less volatile local market query space
4. Low levels of competition foster a marketplace receptive to automation
Highly Automated
Traffic Estimation
Keyword Research Ad Creation Customer
Reporting Account Set-
up Landing
Page Creation
Budget Management
Keyword optimization
Ad Optimization
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Internal Labor Cost Comparison
Month Campaign Creation
Campaign Mgmt
Total Staff
Month 1 15 0 15
Month 2 15 15 30
Month 3 15 30 45
Month 4 15 45 60
Month 5 15 60 75
Month 6 15 75 90
Month Campaign Creation
Campaign Mgmt
Total Staff
Month 1 3 0 3
Month 2 3 2 5
Month 3 3 4 7
Month 4 3 6 9
Month 5 3 8 11
Month 6 3 10 13
@ 2 hrs/account manual campaign creation = 2000 hrs per month 15 SEM staff to run campaign creation
2 hours per month per account of optimization/reporting/customer management (very low) = 2000 hours per month for every 1,000 accounts 15 SEM staff to manage each 1000
“Agency” Platforms Automated production eliminates headcount Exception handling and QA – 3 heads 3 SEM staff to run campaign creation
Automated management eliminates headcount Account management/optimization
monitoring 2 SEM staff to manage each 1000
Automated Platforms
This example could save $25m per year in Internal Labor costs through automation
Campaign Creation for 1,000 New
Accounts per month
Campaign Management & Optimization
per 1,000 Total Accounts
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Total Cost of Ownership (TCO) Comparison
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$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
AdMax Local Total Cost of Ownership Agency-Type Platform Total Cost of Ownership
By automating the processes associated with campaign creation and ongoing management, a reseller can reduce total cost of ownership by over 80%.
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The Practical Benefits of Automation
Stage Automation Benefit Campaign Creation
Using pre-compiled AdWords keyword groups significantly lowers account creation costs and allows resellers to ramp sales without adding headcount
Ad Copy & Landing Page Creation
Automated ad and landing page creation processes speed set-up, particularly in multi-campaign accounts
Bid Management Sophisticated bid and budget management tools allow tens of thousands of SMBs to be efficiently serviced on a daily basis
Optimization Highly automated account optimization systems allow tens of thousands of accounts to be optimized simultaneously, dramatically lowering costs
Account Management
Underlying automated systems permit less labor-intensive account management for tens of thousands of advertisers
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AdMax Local
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AdMax Local Work Flow
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Sales User Obtains a Quote for Merchant
Order is Submitted in the System
Order is Fulfilled/Verified by Sales User
System Deploys Campaigns and
Webpages
System Manages Campaigns and
Reporting
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Sales Person Produces a Quote for a Prospect
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Business Areas/Locations are Added to a Quote
In a typical market, AdMax Local includes: • 2,000-3,000 Business Areas in Business Taxonomy • 3,000-4,000 Locations in Geo-taxonomy • Hundreds of website templates; 100,000+ Keywords, millions of Ad
combinations, billions of website copy combinations
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System Generates Quote Range for Selections
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User Can Save Quote for Pre-Sales Information
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User Can Add Merchant and Budget Commitment
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Reseller Updates Merchant Information
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Reseller Updates Campaign Information
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Automated SEM Campaign Creation
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Google SEM Experience
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Sample Web and Mobile SEM Landing Pages
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Web Page Details to be Included in the Order
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Order Fulfillment Completed
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Self-Service Settings (Templates)
Settings
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Self-Service Settings (Custom Content)
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Google SEO Experience
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Sample Website and Mobile Homepage
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Self-Service UI - Merchant Dashboard
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Reseller Management Dashboard
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TSA Success Story with Platform for 4+ Years
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• Scalable technology to manage tens of thousands of SMB advertiser search engine accounts
• Scalable technology to automate the creation of hundreds of thousands of lead-generation websites
• Established processes to optimize advertiser accounts with reasonable cost to our partners
• Delivery of high-value traffic from agency best practices at reasonable cost to advertisers
• Advertiser retention well above competitive benchmarks
• Google Preferred Partner
• Discussing limited APAC partnerships for 2013