Top 5 Search Marketing Opportunities for 2007: Real-life data from 3,944 Marketers Thursday, October 12th 2006 Anne Holland, President MarketingSherpa, Inc. Research drawn from: Stefan Tornquist, Research Director MarketingSherpa, Inc. © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 1 Facts not Opinion: MarketingSherpa Methodology 1. Primary Research Search Marketing Survey & Interviews 3,944 search marketers and SEM agency pros, August of 2006 Click Fraud Survey 784 search marketers and SEM agency pros, August of 2006 2. 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 Research drawn from: 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 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 2 Opportunity #1: SEO (Again) ROI evaluation - Top 2 answers Product Lead gen. 68.7% 69.7% Search engine optimization (SEO) Product House email marketing Lead gen. 56.4% 64.2% Paid search marketing (CPC) Product Lead gen. 52.5% 64.1% Product Public relations Lead gen. 41.9% 55.4% Product Direct postal mail 41.1% 33.3% Product marketers Lead generation marketers Research drawn from: Lead gen. Online advertising (banners, etc.) Product Lead gen. 19.0% 0% 15% 31.2% 30% 45% 60% 75% © Copyright MarketingSherpa Inc. 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 3 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% All site visitors 4.19% 2% Most common rate: 1.90% Natural search Paid search Most common rate: 2.00% Bottom 1/4 average: 0.70% Research drawn from: Bottom 1/4 average: 0.69% 0% © Copyright MarketingSherpa Inc. 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 4 SEO vs PPC Annual Spend © Copyright MarketingSherpa Inc. 2006 $10.0 $8.0 Paid $7.94 B Paid $6.0 Paid $4.0 $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 Research drawn from: $- $0.33 B 2004 2005 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 5 Opportunity #2: Coping With Rising Cost Per Click $2.5 © Copyright MarketingSherpa Inc. 2006 $2.0 22% $1.96 25% $1.5 $1.61 30% 14% $1.53 $1.52 $1.29 $1.0 $1.03 $1.34 $0.5 Research drawn from: 2004 $0.0 Google AdWords Yahoo! PPC MSN PPC 2005 2006 2004 2005 2006 N/A N/A 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 6 How Other Marketers Are Coping Improve Site's Conversion Efficiency 71% Improve Bid Management 62% Increase Number of Keywords Bid on Shift Budget to Niche Search Rely on More Sophisticated Software Rely More on Outside SEM Agencies 30% 27% 21% 20% We Can Afford It 17% Research drawn from: Take Money From Brand Budgets 0% 16% © Copyright MarketingSherpa Inc. 2006 10% 20% 30% 40% 50% 60% 70% 80% Source: SEMPO, State of Search Marketing Industry, December 2005 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 7 Loyalty Data by Search Engine 80% 70.4% 70% 60% 51.6% Yahoo 50% 40% 30.2% 30% 20% 22.6% 10% Research drawn from: 74.6% G oogle 47.7% M SN 26.3% Ask 21.8% 0% Aug- Sep- O ct05 05 05 © Copyright MarketingSherpa Inc. 2006 N ov- Dec- Jan- Feb- M ar- Apr- M ay- Jun05 05 06 06 06 06 06 06 Jul06 Aug06 Source: Compete Inc., for MarketingSherpa, August 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 8 Opportunity #3: Google’s Triangle Research drawn from: Source: Eyetools Inc., for MarketingSherpa, August 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 9 Inside the New Golden Triangle: Research drawn from: © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 10 Opportunity #4: Search to Promote Offline Percentage of Shoppers 80% 70% 60% 50% 40% 30% 20% 10% 0% Prefer to See and Agree that Internet Use a Combination of Touch Products Before Search Engines are a Online and Offline Purchase Favorite Tool for Finding Sources for Product Product Information Information Make Bulk of Purchases at Physical Locations 38% 68% 61% 62% Research drawn from: © Copyright MarketingSherpa Inc. 2006 Source: Yahoo!, Long and Winding Road: The Route to the Cash Register, May 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 11 Opportunity #5: PR & Search © Copyright MarketingSherpa Inc. 2006 We outsource press release optimization 13% 15% 2005 2006 Produce multiple versions of releases to emphasize different keywords. 8% 9% 13% We deploy RSS feeds. 24% We insert metatags. No 2005 data 35% We purchase optimization from the wire service(s) we use. No 2005 data 15% Research drawn from: Write press releases to emphasize keywords in the headline/body text. 0% 10% 20% 31% 74% 30% 40% 50% 60% 70% © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 12 Sample results Research drawn from: Source: SEO-PR, for MarketingSherpa, August 2006 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 13 How to get your own copy of the 2007 SEM Guide: Our research team welcomes feedback and/or questions. Feedback@Marketing Sherpa.com Research drawn from: 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 02885 (877) 895-1717 Outside the U.S.(401) 247-7655 http://www.MarketingSherpa.com Special offer: Get your instant download PDF copy now + we’ll send a bonus printed-and-bound copy in 24 hours: http://Search-Marketing-Benchmark-Guide-07.MarketingSherpa.com or call 877-895-1717. Code TC 9156 © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. 14 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 email 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. © 2000-2006 MarketingSherpa, Inc. You may distribute this presentation providing it is not altered in any way. Thank you. Research drawn from: 15