search engine strategies : road map

Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-1

Search Engine Strategies: Road Map

INTRO: What is SEM

PLANNING: Things to Know BEFORE You

Start…

EXECUTION: How to Make SEM Work

Why SEM?

How Search Engine WorksHow SEM Works

How Searchers work


Module IIModule II Overview Overview

PLANNING: Things to Know BEFORE You

Start…

Why SEM? Goal Analysis

How good is my site? Site AnalysisHow good is my search? Measure SEM performance

How to sell it? SEM Proposal

How to do it? Strategic Planning


Before We Start: Marketing BasicsBefore We Start: Marketing Basics

Product

Price

Promotion

Place Target Customers

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Marketing

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Before We Start: Marketing BasicsBefore We Start: Marketing Basics Marketing AnalysisMarketing Analysis

Finding opportunities, understanding strengthsFinding opportunities, understanding strengths Avoiding threats, analyzing weaknessesAvoiding threats, analyzing weaknesses In SEM context: Define Goals In SEM context: Define Goals

MarketingMarketing Planning Planning Executive summaryExecutive summary Analysis of current situationAnalysis of current situation Targets and positioning, Marketing mixTargets and positioning, Marketing mix Budget &ControlsBudget &Controls In SEM context: Form Strategy In SEM context: Form Strategy


Before We Start: Marketing BasicsBefore We Start: Marketing Basics Marketing ImplementationMarketing Implementation

Plans are turned into action with day-to-day activities Plans are turned into action with day-to-day activities Good implementation is a challengeGood implementation is a challenge In SEM Context: Module IIIIn SEM Context: Module III

MarketingMarketing Control Control Evaluation of the results of marketing strategiesEvaluation of the results of marketing strategies Checks for differences between goals and performanceChecks for differences between goals and performance In SEM Context: MeasurementIn SEM Context: Measurement


Identify Your Web Site’s Goals Your Goal Determines:Your Goal Determines:

Whether to focus on Whether to focus on paidpaid or or organicorganic search search Your SEM Your SEM strategystrategy How to How to measuremeasure your success: your success: not all clicks are not all clicks are

created equalcreated equal MostMost Internal Time on Internal Time on SEMSEM is Spent on is Spent on Strategy Strategy

and Analyticsand Analytics [SEMPO] Paid Placement:Paid Placement: 82 hours a month 82 hours a month Organic SEO: 59 hoursOrganic SEO: 59 hours Paid Inclusion: 17 hoursPaid Inclusion: 17 hours

Boris: “One dollar per click may not seem like a lot, but it is important that a click is not a purchase”


What are the Goals of These Web Sites?

AMAZON DELL New York Times

WalMart http://bookreporter.com/

McDonald The Army

http://www.amazon.com/

http://www.dell.com/

http://www.nytimes.com/

http://www.walmart.com/

http://bookreporter.com/

http://www.mcdonalds.com/usa/eat/quality0.html

http://www.army.mil/


Web Site Goals Generate Generate (direct) (direct) RevenueRevenue

Difference in timing of purchaseDifference in timing of purchase Difference in supply chain roleDifference in supply chain role Difference between product & serviceDifference between product & service

Generate LeadsGenerate Leads Online Online offline: channel integration offline: channel integration Affiliated marketingAffiliated marketing

Build Brand ImageBuild Brand Image


Revenue Generation: Physical Products vs. Digital Products

The book calls them “online commerce” vs. “pure online”The book calls them “online commerce” vs. “pure online” Example: amazon.com vs. iTunes storeExample: amazon.com vs. iTunes store Example: Buying a cell phone vs. downloading ring tonesExample: Buying a cell phone vs. downloading ring tones

Difference in business models:Difference in business models: Shipping and handlingShipping and handling Post-sales supportPost-sales support

The Importance of Being CompulsiveThe Importance of Being Compulsive Impulse purchase: from 25% to 40% (2000 – 2003)Impulse purchase: from 25% to 40% (2000 – 2003) Impulse purchase: Justifies SEMImpulse purchase: Justifies SEM Where did all the visitors go? --- 70% shopping cart abandonment [Gold 2005]Where did all the visitors go? --- 70% shopping cart abandonment [Gold 2005]



Factors contributing to impulse purchaseFactors contributing to impulse purchase The faster, the betterThe faster, the better Easier to surf, easier to buyEasier to surf, easier to buy

SEM ImplicationSEM Implication If you offer digital (or real time) products/ If you offer digital (or real time) products/

service, target:service, target: Transactional?Transactional? Informational?Informational? Navigational?Navigational?


Revenue Generation: Manufacturer vs. Retailer

Internet brings changes to traditional business modelInternet brings changes to traditional business model The myth of disintermediationThe myth of disintermediation To skip or not to skip?To skip or not to skip?

Manufacturer vs. Retailer: a web perspectiveManufacturer vs. Retailer: a web perspective Both depend on revenue generated through transactionsBoth depend on revenue generated through transactions WHATWHAT to focus? Product-oriented vs. customer-oriented to focus? Product-oriented vs. customer-oriented WHOWHO to serve? Frequency of return visits to serve? Frequency of return visits WHAT KEYWORD? WHAT KEYWORD? Specific vs. generalSpecific vs. general



SEM ImplicationSEM Implication Transactional?Transactional? Informational?Informational? Navigational?Navigational?


Revenue Generation: Information / entertainment provider

A special(?) revenue modelA special(?) revenue model Ad revenueAd revenue Premium subscriptionPremium subscription

SEM Implications:SEM Implications: Navigational?Navigational? Informational?Informational? Transactional?Transactional? Organic or paid?Organic or paid?


Source: Search Engine Marketing Professional Organization


Lead Generation Lead: new customersLead: new customers

Lead generation: finding new customers that Lead generation: finding new customers that maymay purchase eventually purchase eventually

This category covers both “lead” and “offline This category covers both “lead” and “offline purchase” in the textbookpurchase” in the textbook Affiliated marketing vs. offline purchaseAffiliated marketing vs. offline purchase The difference is the timing: a vague conceptThe difference is the timing: a vague concept


Lead Generation

lead offline lead offline purchase purchase


Lead Generation: Affiliated Marketing

Affiliated marketerAffiliated marketer:: company that exists solely to create leads for company that exists solely to create leads for otherother businesses businesses Usually paid based on sales Usually paid based on sales GGoal: to get a customer interested in a product and close the sale oal: to get a customer interested in a product and close the sale

elsewhereelsewhere Often acquires customers during early stages of decision makingOften acquires customers during early stages of decision making

An An affiliate programaffiliate program is created by the is created by the affiliate program sponsoraffiliate program sponsor Provide the affiliated marketers with links to place on their sites Pay by cost-per-action or cost-per-lead



53% of affiliate marketing programs expect to spend more in 2005 on such programs than they did in 2004

The average amount by which merchant expected to increase their 2005 spending on affiliate programs was 19%



SEM for affiliated marketer:SEM for affiliated marketer: Choose your area wiselyChoose your area wisely Research affiliate merchantsResearch affiliate merchants (discussion) Build a strong information web siteBuild a strong information web site FFocus on ? ocus on ? SSearchersearchers Avoid competing with the sponsorAvoid competing with the sponsor

Contextual Ads:: scans the text of a Web site for keywords and returnsscans the text of a Web site for keywords and returns ads to the Web page ads to the Web page

based on what the user is viewing, either through ads placed on the page or based on what the user is viewing, either through ads placed on the page or pop-up adspop-up ads

http://www.google.com/services/adsense_tour/


Lead Generation: Offline Sales

Focus: re-direct traffic to offline sitesFocus: re-direct traffic to offline sites Often targets customers during the later stages of Often targets customers during the later stages of

their decision processtheir decision process Not significantly different from revenue-generating Not significantly different from revenue-generating

models in SEM strategymodels in SEM strategy However, measurement is drastically differentHowever, measurement is drastically different


Lead Generation: Offline Sales

From online to offline: Why?From online to offline: Why? Loyalty does migrate across channels: for every dollar spent Loyalty does migrate across channels: for every dollar spent

online, six will be spent offline [online, six will be spent offline [Jupiter Research , 2004] 43% of Internet users bought products from a retailer’s offline 43% of Internet users bought products from a retailer’s offline

store after viewing them on the seller’s Websitestore after viewing them on the seller’s Website

From online to offline: How?From online to offline: How? call to action: call to action: things you get someone to dothings you get someone to do Shift people offline :promotion Shift people offline: personalization

http://jupiterresearch.com/

http://www.circuitcity.com/ccd/home.do



http://avon.com/

http://avon.com/


Brand Image BBrand image:rand image:

the perception of a brand in the minds of personsthe perception of a brand in the minds of persons

Building brand image:Building brand image: EEmphasize on your awareness needs firstmphasize on your awareness needs first Use trendy designs could helpUse trendy designs could help Focus on paid placement for fast resultsFocus on paid placement for fast results


Brand Image How could SEM How could SEM hurthurt brand image? brand image?

Misuse of contextual adsMisuse of contextual ads Failure to show up under major key wordsFailure to show up under major key words


Source: Search Engine Marketing Professional Organization


Summary

search engine strategies : road map

Documents

sem workmodule

startwhy sem

sem proposalhow

performancein sem context

weaknessesin sem context

measure sem performancehow

retailerrevenue generation

generalrevenue generation