october 24th, 2012 - webinar - sem forecasts & strategies for 2012 holidays

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Search Engine MarketingStrategies & Forecasts for Holiday 2012

Laura JajkoVP, MarketingAmericanFrame.com

Udayan BoseFounder & CEONetElixir.com

The webinar will begin at 2pm EST.

Join our LinkedIn Group: NetElixir University

10/24/2012

Webinar Information

• Thank you for joining NetElixir University’s first webinar!

• Attendees can raise their hand or ask questions from the GoToMeeting sidebar.

• We will be sharing the link to the presentation with all attendees tomorrow.

• If you have any specific questions, please do not hesitate to email us:– shahira@netelixir.com– udayan@netelixir.com– lauraj@americanframe.com

10/24/2012

What will be Covered…

• 5 strategies for a successful paid search campaign this holiday season.

• Best practices: American Frame’s ad copy strategy.

• NetElixir’s SEM forecasts for 2012 holiday season.

4About Laura Jajko & American Frame

• Laura is VP of Sales & Marketing. Second generation member of the company.

• Laura’s experience in search spans 7 years. American Frame has been working with NetElixir since July 2011.

• Incorporated in 1973. Internet retailer since 2001.

• Online source for custom picture frames, supplies, fine art printing & wholesale volume framing.

• Connect with Laura (@LauraJajko) and American Frame (@AmericanFrame) on Twitter.

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About Udayan Bose

• Founder & CEO, NetElixir,Inc.

• Founded PartyBingo.com (PartyGaming, Plc).

• Guest Lecturer: - Johnson School of Management, Cornell University - City University of New York, Baruch - Indian School of Business

• Fanatically Analytical. Passionate about tracking online shopper behavior through search advertising insights.

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About NetElixir• Incorporated in 2005. Headquartered in Princeton, NJ.

• We offer multi-channel campaign management technology , end-to-end campaign management services and web analytics consulting solutions to retailers

• Ongoing Retail Search Insights Research since August 2008 (featured in NYTimes, Time, Forbes).

www.LXRMarketplace.com

LinkedIn Group:NetElixir University

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Why Do We Need SEM Strategies for Holidays?

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For some retailers, the holiday season can represent anywhere between 20–40% of annual sales. (National Retail Foundation)

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Average CPC across retail categories goes up by 39% during holidays. (NetElixir Lab)

Black Friday- December 20, 2011 Rest of 20110

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Average CPC ($)

Average CPC ($)

39%

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Number of paid search advertisers per retail category increases by 32%. (NetElixir Lab)

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Our research shows that for any search query across retail categories, 70%+ of paid search advertisers lose money.

2/3 advertisers lose money!

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Strategies to ensure you are in 30%

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Decide what Products to promote through Paid Search

14Margin

Velocity

ROI

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Expand Your Keyword List Controlled Expansion.

Is Keyword Search AdvertisingRight for you?

•Are these “Wave Making” Products?

Velocity

Margin

Category Level ROI Grid

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Assess Competition for Each Quadrant.

Create pin-pointed paid search tactics foreach quadrant.

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Category # Units Average Unit Value Average Revenue/Month Revenue Contribution Target Revenue StrategyEmbroidery 178 $6.12 $1,088.71 1.29% $1,933.00 Not AdvertiseJacket 137 $17.85 $2,444.83 2.89% $4,340.77 Optmization + ExpansionLab Coat 85 $23.55 $2,002.15 2.37% $3,554.80 Optmization + ExpansionMedical Supplies 150 $12.01 $1,802.07 2.13% $3,199.56 Not AdvertisePants 2230 $16.15 $36,017.83 42.63% $63,949.34 OptimizationShoes 66 $78.56 $5,185.26 6.14% $9,206.38 ExpansionTops 2373 $14.91 $35,393.07 41.89% $62,840.09 OptimizationVest 6 $17.99 $107.94 0.13% $191.65Warm-Up 8 $16.99 $135.92 0.16% $241.32Skirts 12 $25.49 $305.88 0.36% $543.09 Optmization + ExpansionTotal 5245 $16.11 $84,483.66 100% $150,000.00

Start by creating a category-level margin & volume table..

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Budget Allocation Across Categories:

Category Type Of Keyword % Of Spend Number of keywords SpendPants (40% Of Total Spend) Generic 30%

Product Specific 50%Long Tail 20%

Tops (40% Of Total Spend) Generic 30%Product Specific 50%Long Tail 20%

Shoes (10% Of Total Spend) Generic 30%Product Specific 50%Long Tail 20%

Jacket (5% Of Total Spend) Generic 30%Product Specific 50%Long Tail 20%

Lab Coats (3% Of Total Spend) Generic 30%Product Specific 50%Long Tail 20%

Skirts (2% Of Total Spend) Generic 30%Product Specific 50%Long Tail 20%

TOTAL $0.00

Pre-set Budget for Each Category

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Once you have the category-level plan ready..

only then start with execution.

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Keyword Efficiency Audits you Need todo Before the Holidays

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Keyword Facts from NetElixir Research Lab

Based on 300+ Keyword Audits conducted fromJanuary 2009-September 2012.

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Less than 2% of active keywordsdeliver 100% of conversions.

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25% = 0

1/4th of Keyword Spend generates $0 in sales

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Step 1: Download 3 month keyword reportfrom search engines.

Keyword state Keyword Campaign Ad Group Impressions Clicks CostConversions (1-click) Revenue

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Step 2: Upload this keyword report to Keyword Analyzer tool

http://www.lxrmarketplace.com/keywordanalyzertool.html

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Ensure that your long tail keyword strategy is working.

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Mud image

Keyword Advertising does not need tobe throwing mud at the wall…

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10% = 0

% of SEM Spend delivering zero sales (3 month trigger)

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$7/keyword/month

Number of Active Keywords(Retail Benchmark)

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Customized Ad Copies drive stronger results

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Sample American Frame Ad Copy

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CTR: 11%

Brand Name in Headline

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CTR: 19%

Free Shipping in Display URL

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CTR: 7%

Seller Reviews

354 Sitelinks

CTR: 5%

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Buy Now!(at the end of ad copy)

CTR: 25%Conversion Rate:19%

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Managing SEM Program in-housevs.

Outsourcing to SEM Agency.

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Questions

1. Is SEM a core activity for your business?

2. Do you have expert in-house resource?

3. What is your organizational philosophy? - Outsourcing versus in-house - Partnership versus Order Execution

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What’s the Best Solution for my Business?

In-housewith or without tool

Outsource to SEM agency

Hybrid Model3-6 months ofoutsourced SEM followedby in-houseusing tool.

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Insights on Holiday Search Trends

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% of site visits% of site purchases

When did people search and when did they buyLenovo products on Cyber Monday?

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When did people search and when did they buyLenovo products on Black Friday?

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CPC ($)

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2011 CPC Trends

Last Weekend pre-Christmas

Black Friday weekend

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3 Strategies to Maximize Holiday SEM Sales

1. Day-part your campaigns for better results.

2. The first Sunday and Monday after Cyber Monday is a good time to use targeted SEM promotions.

3. Plot “Revenue/Click” for your SEM program for 2011 (day-wise), to identify the “sweet spot”.

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Our Paid Search Advertising Forecastsfor 2012 Holidays

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Key Paid Search Advertising Parameters(YTD September 2012 versus YTD September 2011)

Y/Y Growth (YTD Sept 2012)

Y/Y Growth (Q1,2012)

Y/Y Growth (Q2,2012)

Y/Y Growth (Q3,2012)

Clicks 16.2% 11% 15% 17%

CPC ($) 7.9% 10% 5.3% 7%

Click-through-Rate

5% 8% 3.8% 5%

Conversion Rate

18% 24% 16% 13%

Average Order Value

3% 10.2% (1.5%) (1%)

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Select Categories (Y/Y Holiday Forecasts –2012 vs. 2011)Clicks (Y/Y Growth)

CPC (Y/Y Growth)

CTR (Y/Y Growth)

AOV (Y/Y Growth)

Conversion Rate (Y/Y Growth)

Flowers & Gifts 18% 8% 2% 4% 8%

Apparel 16% 9% 7% 7% 13%

Consumer Electronics

15% 12% 7% 7% 12%

Food & Drugs 2% 5% 3% 3% 10%

Home Furnishings

15% 8% 6% 2% 12%

Pet Supplies 8% 2% 2% 2% 6%

Home Improvement

11% 8% 6% 1% 16%

Total 14% 9% 5% 2% 10%

* Does not include clicks from mobile devices.

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NetElixir Holiday Forecasts: Summary

1. Y/Y increase in Paid Search Clicks ~ 14%.

2. Y/Y increase in Average CPC ~ 9%.

3. Average Order Value remains more or less flat.

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Take Aways

1. Holiday SEM is competitive and expensive.

4. Create ad copies that are relevant, unique and compelling.

2. Choose the products you want to promote using ROI Grid.

6. Map day-wise Revenue/Click for 2011 PPC Campaigns and use the information to bid intelligently.

5. Let your goals drive outsourcing versus in-house SEM management decision.

3. Use Keyword Analyzer tool to audit your keyword portfolio.

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Download a complimentary copy of NetElixir’s “Fresh SEM Ideas Workbook”

http://www.netelixir.com/fresh2012.html

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Thank You!

Laura JajkoVP, Sales & MarketingAmericanFrame.comlauraj@americanframe.com

Udayan BoseFounder & CEONetElixir.comudayan@netelixir.com

Join Our LinkedIn Group to get weekly SEM insightshttp://www.linkedin.com/groups/NetElixir-University-4626057

We wish you a very successful holiday season!

10/24/2012

Questions?

To submit a question, please use the GoToMeeting sidebar on your screen.