Top 5 Search Marketing Opportunities for 2007:
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1 Top 5 Search Marketing Opportunities for 2007: Real-life data from 3,944 Marketers Thursday, October 12 th 20 Anne Holland, President MarketingSherpa, Inc. Stefan Tornquist, Research Director MarketingSherpa, Inc. 1
2 Facts not Opinion: MarketingSherpa Methodology 1. Primary Research Search Marketing Survey & Interviews 3,944 search marketers and SEM agency pros, August of 20 Click Fraud Survey 784 search marketers and SEM agency pros, August of Partnered Research Search Marketing Eyetracking Study Phase II MarketingSherpa & Eyetools Inc. Search Engine Loyalty Study MarketingSherpa & Compete Inc. Press Release Optimization Study MarketingSherpa & SEO-PR 3. Best of Secondary Research, including: Atlas, comscore, Cymfony, Hitwise, Nielsen/Netratings, Omniture, OneStat, WebSideStory and many others 4. Real World Experience Anecdotal evidence from MarketingSherpa s 3,300 Case Studies & Interviews 2
3 Opportunity #1: SEO (Again) ROI evaluation - Top 2 answers Search engine optimization (SEO) Product Lead gen. 68.7% 69.7% House marketing Product Lead gen. 56.4% 64.2% Paid search marketing (CPC) Product Lead gen. 52.5% 64.1% Public relations Product Lead gen. 41.9% 55.4% Direct postal mail Product Lead gen. 33.3% 41.1% Product marketers Online advertising (banners, etc.) Product Lead gen. 19.0% 31.2% Lead generation marketers 0% 15% 30% 45% 60% 75% Copyright MarketingSherpa Inc. 20 3
4 SEO vs PPC Conversion Rates 10% Top 1/4 average: 10.13% 8% 6% Top 1/4 average: 5.11% 4% 3.92% 4.09% 4.19% 2% Most common rate: 1.90% Natural search All site visitors Paid search Most common rate: 2.00% Bottom 1/4 average: 0.70% 0% Bottom 1/4 average: 0.69% Copyright MarketingSherpa Inc. 20 4
5 SEO vs PPC Annual Spend $10.0 Copyright MarketingSherpa Inc. 20 $8.0 Paid $7.94 B Paid $6.0 $4.0 Paid $4.70 B SEO:7% of paid search $6.20 B SEO:12% of paid search SEO:10% of paid search $2.0 $- $0.74 B $0.79 B $0.33 B
6 Opportunity #2: Coping With Rising Cost Per Click $2.5 Copyright MarketingSherpa Inc. 20 $2.0 22% $1.96 $1.5 25% $1.29 $ % 14% $1.34 $1.53 $1.52 $1.0 $1.03 $0.5 $ N/A N/A 20 Google AdWords Yahoo! PPC MSN PPC 6
7 How Other Marketers Are Coping Improve Site's Conversion Efficiency 71% Improve Bid Management 62% Increase Number of Keywords Bid on 30% Shift Budget to Niche Search 27% Rely on More Sophisticated Software 21% Rely More on Outside SEM Agencies 20% We Can Afford It 17% Take Money From Brand Budgets 16% Copyright MarketingSherpa Inc. 20 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: SEMPO, State of Search Marketing Industry, December
8 Loyalty Data by Search Engine 80% 70% 70.4% Google 74.6% 60% 50% 51.6% Yahoo 47.7% 40% 30% 30.2% MSN 26.3% 20% 22.6% Ask 21.8% 10% 0% Aug- 05 Sep- 05 Oct- 05 Nov- 05 Dec- 05 Jan- Feb- Mar- Apr- Copyright MarketingSherpa Inc. 20 May- Jun- Jul- Aug- Source: Compete Inc., for MarketingSherpa, August 20 8
9 Opportunity #3: Google s Triangle Source: Eyetools Inc., for MarketingSherpa, August 20 9
10 Inside the New Golden Triangle: 10
11 Opportunity #4: Search to Promote Offline 80% Percentage of Shoppers 70% 60% 50% 61% 62% 68% 40% 30% 38% 20% 10% 0% Prefer to See and Touch Products Before Purchase Agree that Internet Search Engines are a Favorite Tool for Finding Product Information Use a Combination of Online and Offline Sources for Product Information Make Bulk of Purchases at Physical Locations Copyright MarketingSherpa Inc. 20 Source: Yahoo!, Long and Winding Road: The Route to the Cash Register, May 20 11
12 Opportunity #5: PR & Search We outsource press release optimization 13% 15% Copyright MarketingSherpa Inc. 20 Produce multiple versions of releases to emphasize different keywords. 8% 9% We deploy RSS feeds. 13% 24% We insert metatags. No 2005 data 35% We purchase optimization from the wire service(s) we use. No 2005 data 15% Write press releases to emphasize keywords in the headline/body text. 31% 74% 0% 10% 20% 30% 40% 50% 60% 70% 12
13 Sample results Source: SEO-PR, for MarketingSherpa, August 20 13
14 How to get your own copy of the 2007 SEM Guide: Our research team welcomes feedback and/or questions. Sherpa.com New for 2007! 185 new charts with PPC and SEO data 18 Eyetracking Study Heatmaps 3,944 marketers real-life search costs and results MarketingSherpa, Inc. 499 Main Street Warren, RI (877) Outside the U.S.(401) Special offer: Get your instant download PDF copy now + we ll send a bonus printed-and-bound copy in 24 hours: or call Code TC
15 About MarketingSherpa MarketingSherpa is a research firm publishing practical information for professional marketers Our name "Sherpa" refers to the Sherpas of Nepal who guide climbers up Mount Everest. Our goal is to be your friendly native guides who help make your tough climb toward great marketing results a bit easier by handing you research on 'what works.' We're currently celebrating our sixth year anniversary. Our offices are located in Warren, Rhode Island, a scenic waterfront town roughly 30 minutes from Providence and Newport, and about 75 minutes from downtown Boston. Our research activities include: In-depth interviews with marketing VPs, directors and the agencies/consultancies that serve them in the US and Canada. We conduct hundreds of these hour-long interviews per year. Surveys of our online and newsletter readership, 237,000 marketing, advertising and PR professionals. We survey portions of our readership on what's working, and share Executive Summaries of results with the entire community, roughly every two months. Industry-wide results data based on aggregate client results metrics from various vendors and analytics firms. Lab tests conducted in conjunction with analytics vendor partners. Surveys of third party lists and communities -- ranging from consumers to vertical business professionals -- conducted routinely throughout the year in partnership with other media companies, marketing vendors, and research firms. Collection and analysis of "best of" research data published by other research firms, labs, and service providers to the marketing field. We're constantly reviewing hundreds of research reports and white papers for data that might prove useful. 15
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