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 problem. 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 advertising. 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 inventory. 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. 204,753 Searches 151,143 Organic Clicks 21,160 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 Scale 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. 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. http://www.pretarget.com Sources “2011 Digital Marketing Outlook,” February 2011, Society of Digital Agencies, http://www.slideshare.net/sodaspeaks/society-of-digital-agencies- soda-2011-digital-marketing-outlook “Eye Tracking Bing vs. Google: A Second Look,” March, 2011, UserCentric http://www.usercentric.com/news/2011/01/26/eye-tracking-bing-vs-google- second-look “Google – Average Number of Words Per Query have Increased!,” February 1, 2008, Beu Blog, http://www.beussery.com/blog/index.php/2008/02/google-average- number-of-words-per-query-have-increased/ “iProspect Search Engine User Attitudes”, April 2004, http://www.iprospect.com/premiumPDFs/iProspectSurveyComplete.pdf “Keywords with the highest cost per click,” KeywordSpy, http://www.keywordspy.com/research/ “Marketing Budgets 2010: Effectiveness, Measurement and Allocation,” ExactTarget & eConsultancy, http://www.scribd.com/full/40754296?access_key=key- 28i5bynuvk73nzlhc2n4 "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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