Use Display to Capture What is Missed by Paid Search by kpieper876


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									White Paper
March 2011

Use Display to Capture What
is Missed by Paid Search

Summary          Organic and paid search are effective marketing tactics for online
                  advertisers – users are actively engaged in seeking a solution to a

                 Organic search optimization continues to receive increased
                  budget allocation for its high ROI, but its unpredictability gives
                  way to the importance and spending with paid search

                 However, users click on far more organic listings than paid search
                  listings –seven times more organic clicks than what advertisers
                  see with their paid search campaign.

                 The leading alternative to capture these “missed” organic
                  searchers is “search retargeting” via search engines, retargeting
                  services, search agency, publishers, and search retargeting
                  services. Each solution poses its own unique challenges which
                  include limited access to competitive search data and inventory;
                  lack of scale for an effective campaign; inability to reach new
                  searchers beyond retargeting existing paid search visitors; access
                  to quality, motivated data and users.

                 Pretarget overcomes the drawbacks of classical search
                  retargeting with scalable access to 200 million users across 2
                  million sites; motivated searchers from the top three engines; no
                  site tagging; and proprietary publisher and select ad exchange

Page |1                                                                               Copyright 2011, Pretarget
                                          “pretarget”, “search expansion” and “search for display” are all trademarks of Working Research, Inc.
White Paper
March 2011

Challenge     Search is a key indicator of intent for online advertisers. As a result,
              brands invest heavily in optimizing web site content to appear as the
              number one “organic” result for a given keyword search. The elusive
              “first position” cannot be purchased, is never guaranteed and is always
              a moving target, as search engines constantly tweak their algorithms for
              relevancy. According to an eConsultancy/ExactTarget study, marketers
              planned a greater increase in search optimization than paid search
              advertising in 2010 – in several vertical sectors, search optimization saw
              the greatest budget increase of all tactics. For 2011, the Society of
              Digital Agencies found this trend continuing as marketers plan to invest
              more in search optimization than digital advertising for 2011.

              Because search is effective and organic optimization is unpredictable,
              advertisers spend billions in paid search advertising to obtain the top
              “paid” listing for keyword search results. While the average cost per
              click is somewhere around one dollar, advertisers find paid search so
              valuable they are willing to spend over US$40 per click.

                           Keywords with Highest Cost Per Click
                           donate your car sacramento                                             $45.74
                           illinois asbestos attorney                                             $43.82
                           new york mesothelioma lawyers                                          $43.59
                           tax attorney columbus ohio                                             $43.36
                           phoenix dui attorney                                                   $43.13
                           Source: KeywordSpy, February 23, 2011

Page |2                                                                                  Copyright 2011, Pretarget
                                             “pretarget”, “search expansion” and “search for display” are all trademarks of Working Research, Inc.
White Paper
March 2011

              However, more than two-thirds of searchers completely ignore paid
              search ads in the right column. Moreover, only one-third of paid search
              listings ever receive a click - users click on seven times more “organic”
              search results. It’s these other seven organic clicks (which go to other
              publishers or competitors) that paid search advertising campaigns
              simply miss.


                                           Paid Clicks

Facts         According to Credit Suisse, the number of total searches in the US will
              reach over 204 billion in 2011 ("US Advertising Forecast: 2010-2011”).
              Credit Suisse also estimates the click through rate on paid searches is
              approximately 30 percent, yielding 21 billion paid clicks annually.
              According Google Analytics Evangelist Avinash Kaushik, 14 percent of
              Google clicks are paid while 86 percent are organic (Beu Blog, 2008).
              Older data from iProspect indicates that other search engines may see a
              higher proportion of paid clicks to organic (“iProspect Search Engine
              User Attitudes”, April 2004). Basing analysis on the most recent data
              from Credit Suisse and Kaushik indicates that the total number of
              organic search clicks may be as high as 151 billion annually, or seven
              organic clicks for every paid click.

Page |3                                                                                  Copyright 2011, Pretarget
                                             “pretarget”, “search expansion” and “search for display” are all trademarks of Working Research, Inc.
White Paper
March 2011

Solutions     It is possible to capture “lost clicks” from organic results through “search
              retargeting.” The source of a user’s click (such as a search listing or
              originating web page) is passed in a user’s clickstream to the destination
              page in the header’s HTTP-referrer field. Search engines typically pass
              the keyword and other technical data to the destination page. The web
              site destination usually logs this data and uses it for analytics (e.g.
              Google Analytics, WebTrends, etc). However, it is possible for other
              programs located on the destination page to capture the referrer data,
              extract the search keyword and set an associated browser cookie.
              Naturally, this browser cookie can then be used to identify the browser
              (and associated keyword) for ad targeting at some future point across
              any publisher, network or exchange, which is called “search
              retargeting.” Assuming one has a large enough footprint to see many
              referring organic clicks through the above process; search retargeting
              can be an effective way to reach searchers missed by paid search
              campaigns. However, there are various challenges with the numerous
              search retargeting methods available today.
                                                     Engine Agnostic

                                                                                             Quality Sources
                                                                        New Searchers

                       Search Engine                                    X                    X    X
                       Site Retargeting              X                                       X
                       Search Agency                 X                                       X
                       Publisher                     X                  X                    X
                       Search Retargeting            X                  X                    Some

              Search Engine: To engage in true “search retargeting”, one must buy
              directly from the search engine. While the search engine can enable you
              to advertise in display against searchers you will only be able to do so
              within the search engine’s proprietary display network. For example, to
              engage in search retargeting via Google, you cannot buy display
              inventory within Right Media (which is a Yahoo property). As a result, a
              direct search retargeting buy will miss a portion of searchers. In
              addition, you may be limited in how you can use third party tracking for
              reporting and optimization with the search engines.

Page |4                                                                                  Copyright 2011, Pretarget
                                             “pretarget”, “search expansion” and “search for display” are all trademarks of Working Research, Inc.
White Paper
March 2011

              Site Retargeting: It is possible to engage a “retargeting” service or ad
              network to identify searchers on your site and seek them on ad
              exchanges. However, this method only reaches users whom you have
              already seen through a search ad, not the other six or seven searchers
              who have visited competitors or other publishers. In addition, this also
              assumes your retargeting service can distinguish between incoming
              searchers vs retargeting users from other sources.

              Search Agency: Your search agency is a natural fit for search retargeting.
              While search and ad exchange media share similar “auction based”
              buying mechanisms, the two markets are very different and require a
              slightly different buying approach than one might expect. In addition,
              your search agency will have a same challenge as your site retargeting
              firm: they will only be able to retarget users you have already seen
              before, not the other six or seven going to your competitors or other

              Publishers: A select number of publishers may offer search retargeting
              as part of their RFP response. However, most publishers do not offer
              this capability. Those that do will most likely be targeting searchers on
              their site with display inventory from ad exchanges, which poses its own
              unique challenges. More importantly, while some publishers have large
              footprints and ample incoming organic traffic, they will most likely be
              unable to deliver a significant amount of scale against a given keyword
              list. Credit Suisse notes that around 34 percent of searches contain a
              paid ad, leading one to believe that only 34 percent of searches have
              any commercial value. The same holds true for publishers on the
              receiving end of this search traffic – only one-third of a publisher’s
              search traffic has commercial value. Of those searches, even a small
              number will match your keyword list. The buy will likely work well, but
              will have very limited scale.

              Search Retargeting: A new breed of services offer specialized search
              retargeting services. (The term “search retargeting” is misleading, since
              these services technically are not retargeting searchers you have already
              seen.) By aggregating data from numerous sources, these services
              overcome the proprietary limitations of search engines, the limited
              vertical scope of a single publisher and the limited visibility of site or
              search agency retargeting services. However, rather than partnering

Page |5                                                                                  Copyright 2011, Pretarget
                                             “pretarget”, “search expansion” and “search for display” are all trademarks of Working Research, Inc.
White Paper
March 2011

              with publishers, these services often source their data through methods
              which may not accurately reflect the true motivation or intent of the
              searcher: domain squatting pages, adware toolbars and arbitraged
              second tier search engine traffic. In addition, many of these services fish
              from the same pond for their search data resulting in quick overuse of
              the data, user burnout and low performance.

Pretarget’s   Pretarget offers the ideal solution for reaching searchers you have not
              yet seen – not to be confused with “retargeting” which often implies site
Solution      pixeling, we call it “search expansion”. Pretarget aggregates user
              searches from all engines via proprietary network of 2 million publisher
              partner data sources reaching 200 million US users.

              New Searchers, Not Retargeted Searchers: Pretarget focuses on seeking
              out the other searchers you haven’t seen or your paid search campaign
              missed. These are users who have searched your desired terms and
              clicked to visit your competitors or another publisher rather than you.
              We find those searchers across the internet (via publisher partners and
              select ad exchange inventory) and display them your banner message.

              No Site Tagging: Because Pretarget focuses on search “expansion” and
              not retargeting, there is no client site tagging needed.

              Google, Bing & Yahoo Searchers: Google, Bing and Yahoo account for
              the vast majority of searches and this is where we focus. Top search
              engine users are the most motivated.

              Motivated Searchers from Quality Sources: Quality content web sites
              are the ones attracting and keeping highly motivated and engaged users
              from search engines. These are the sites on the first page of search
              results. These publishers don’t actively market and sell their data for
              targeting. Pretarget has unique and exclusive arrangements that
              incentivize these high value publishers to extend their search audience
              to advertisers through Pretarget.

              Meaningful Scale: Having scale means having the ability to offer both
              breadth of searches (the number of distinct queries) and depth of
              searches (the frequency of those queries). While most alternatives have
              the breadth via long tail data sources, Pretarget enables breadth and
              depth required for a meaningful and significant media buy.

Page |6                                                                                  Copyright 2011, Pretarget
                                             “pretarget”, “search expansion” and “search for display” are all trademarks of Working Research, Inc.
White Paper
March 2011

About         Pretarget™ is the Search for Display™ advertising trading desk. We
              facilitate keyword data and ad inventory transactions between premium
Pretarget     brand publishers and advertisers. Keyword is king and that is all we do.
              No arbitrary categories or classifications. Because Pretarget™ focuses on
              prospecting, there is no need for advertisers to install retargeting tags.
              Advertisers leverage their keyword list asset and publishers monetize an
              overlooked data stream.

Sources       “2011 Digital Marketing Outlook,” February 2011, Society of Digital

              “Eye Tracking Bing vs. Google: A Second Look,” March, 2011, UserCentric

              “Google – Average Number of Words Per Query have Increased!,”
              February 1, 2008, Beu Blog,

              “iProspect Search Engine User Attitudes”, April 2004,

              “Keywords with the highest cost per click,” KeywordSpy,

              “Marketing Budgets 2010: Effectiveness, Measurement and Allocation,”
              ExactTarget & eConsultancy,

              "US Advertising Forecast: 2010-2011,” Credit Suisse

Page |7                                                                                   Copyright 2011, Pretarget
                                              “pretarget”, “search expansion” and “search for display” are all trademarks of Working Research, Inc.

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