scalable smb search marketing reducing opex …...automated platform models automated sem platforms...

Scalable SMB Search Marketing Reducing OPEX Through Automation

About TSA

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

AdMax Local


•  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”

Reducing OPEX Through Automation

>$1,000/mth

<$1,000/mth

“Long Tail” of SME Budgets


–  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

6

“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


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


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


Total Cost of Ownership (TCO) Comparison


$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%.

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


AdMax Local

AdMax Local Work Flow


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

Sales Person Produces a Quote for a Prospect


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


System Generates Quote Range for Selections


User Can Save Quote for Pre-Sales Information


User Can Add Merchant and Budget Commitment


Reseller Updates Merchant Information


Reseller Updates Campaign Information


Automated SEM Campaign Creation


Google SEM Experience


Sample Web and Mobile SEM Landing Pages


Web Page Details to be Included in the Order


Order Fulfillment Completed


Self-Service Settings (Templates)

Settings


Self-Service Settings (Custom Content)


Google SEO Experience


Sample Website and Mobile Homepage


Self-Service UI - Merchant Dashboard


Reseller Management Dashboard


TSA Success Story with Platform for 4+ Years


•  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

THANK YOU •  Matt Kain

•  CEO Asia Pacific [email protected]

•  +61 (0)457 510 701

scalable smb search marketing reducing opex …...automated platform models automated sem platforms...

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