fall 2006 davison/lincse 197/bis 197: search engine strategies 5-1 search engine strategies: road...
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Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-1
Search Engine Strategies: Road Map
INTRO: What is SEM
PLANNING: Things to Know BEFORE You
Start…
EXECUTION: How to Make SEM Work
Why SEM?
How Search Engine Works
How SEM Works
How Searchers work
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-2
Module IIModule II Overview Overview
PLANNING: Things to Know BEFORE You
Start…
Why SEM? Goal Analysis
How good is my site? Site AnalysisHow good is my search? Measure SEM performance
How to sell it? SEM Proposal
How to do it? Strategic Planning
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-3
Before We Start: Marketing BasicsBefore We Start: Marketing Basics
Product
Price
Promotion
Place Target Customers
Mar
ketin
g
anal
ysis
Marketing
planning
Marketing
control Mar
keting
impl
emen
tation
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-4
Before We Start: Marketing BasicsBefore We Start: Marketing Basics Marketing AnalysisMarketing Analysis
Finding opportunities, understanding strengthsFinding opportunities, understanding strengths Avoiding threats, analyzing weaknessesAvoiding threats, analyzing weaknesses In SEM context: Define Goals In SEM context: Define Goals
MarketingMarketing Planning Planning Executive summaryExecutive summary Analysis of current situationAnalysis of current situation Targets and positioning, Marketing mixTargets and positioning, Marketing mix Budget &ControlsBudget &Controls In SEM context: Form Strategy In SEM context: Form Strategy
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-5
Before We Start: Marketing BasicsBefore We Start: Marketing Basics
Marketing ImplementationMarketing Implementation Plans are turned into action with day-to-day activities Plans are turned into action with day-to-day activities
Good implementation is a challengeGood implementation is a challenge In SEM Context: Module IIIIn SEM Context: Module III
MarketingMarketing Control Control Evaluation of the results of marketing strategiesEvaluation of the results of marketing strategies Checks for differences between goals and performanceChecks for differences between goals and performance In SEM Context: MeasurementIn SEM Context: Measurement
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-6
Identify Your Web Site’s Goals Your Goal Determines:Your Goal Determines:
Whether to focus on Whether to focus on paidpaid or or organicorganic search search Your SEM Your SEM strategystrategy How to How to measuremeasure your success: your success: not all clicks are not all clicks are
created equalcreated equal MostMost Internal Time on Internal Time on SEMSEM is Spent on is Spent on Strategy Strategy
and Analyticsand Analytics [SEMPO] Paid Placement:Paid Placement: 82 hours a month 82 hours a month Organic SEO: 59 hoursOrganic SEO: 59 hours Paid Inclusion: 17 hoursPaid Inclusion: 17 hours
Boris: “One dollar per click may not seem like a lot, but it is important that a click is not a purchase”
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-7
What are the Goals of These Web Sites?
AMAZON DELL New York Times
WalMart http://bookreporter.com/
McDonald The Army
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-8
Web Site Goals Generate Generate (direct) (direct) RevenueRevenue
Difference in timing of purchaseDifference in timing of purchase Difference in supply chain roleDifference in supply chain role Difference between product & serviceDifference between product & service
Generate LeadsGenerate Leads Online Online offline: channel integration offline: channel integration Affiliated marketingAffiliated marketing
Build Brand ImageBuild Brand Image
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-9
Revenue Generation: Physical Products vs. Digital Products
The book calls them “online commerce” vs. “pure online”The book calls them “online commerce” vs. “pure online”
Example: amazon.com vs. iTunes storeExample: amazon.com vs. iTunes store
Example: Buying a cell phone vs. downloading ring tonesExample: Buying a cell phone vs. downloading ring tones
Difference in business models:Difference in business models:
Shipping and handlingShipping and handling
Post-sales supportPost-sales support
The Importance of Being CompulsiveThe Importance of Being Compulsive
Impulse purchase: from 25% to 40% (2000 – 2003)Impulse purchase: from 25% to 40% (2000 – 2003)
Impulse purchase: Justifies SEMImpulse purchase: Justifies SEM
Where did all the visitors go? --- 70% shopping cart abandonment [Gold 2005]Where did all the visitors go? --- 70% shopping cart abandonment [Gold 2005]
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-10
Revenue Generation: Physical Products vs. Digital Products
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-11
Revenue Generation: Physical Products vs. Digital Products
Factors contributing to impulse purchaseFactors contributing to impulse purchase The faster, the betterThe faster, the better Easier to surf, easier to buyEasier to surf, easier to buy
SEM ImplicationSEM Implication If you offer digital (or real time) products/ If you offer digital (or real time) products/
service, target:service, target: Transactional?Transactional? Informational?Informational? Navigational?Navigational?
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-12
Revenue Generation: Manufacturer vs. Retailer
Internet brings changes to traditional business modelInternet brings changes to traditional business model The myth of disintermediationThe myth of disintermediation To skip or not to skip?To skip or not to skip?
Manufacturer vs. Retailer: a web perspectiveManufacturer vs. Retailer: a web perspective Both depend on revenue generated through transactionsBoth depend on revenue generated through transactions WHATWHAT to focus? Product-oriented vs. customer-oriented to focus? Product-oriented vs. customer-oriented WHOWHO to serve? Frequency of return visits to serve? Frequency of return visits WHAT KEYWORD? WHAT KEYWORD? Specific vs. generalSpecific vs. general
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-13
Revenue Generation: Manufacturer vs. Retailer
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-14
Revenue Generation: Manufacturer vs. Retailer
SEM ImplicationSEM Implication Transactional?Transactional? Informational?Informational? Navigational?Navigational?
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-15
Revenue Generation: Information / entertainment provider
A special(?) revenue modelA special(?) revenue model Ad revenueAd revenue Premium subscriptionPremium subscription
SEM Implications:SEM Implications: Navigational?Navigational? Informational?Informational? Transactional?Transactional? Organic or paid?Organic or paid?
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-16
Source: Search Engine Marketing Professional Organization
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-17
Lead Generation
Lead: new customersLead: new customers Lead generation: finding new customers that Lead generation: finding new customers that maymay
purchase eventually purchase eventually
This category covers both “lead” and “offline This category covers both “lead” and “offline purchase” in the textbookpurchase” in the textbook Affiliated marketing vs. offline purchaseAffiliated marketing vs. offline purchase The difference is the timing: a vague conceptThe difference is the timing: a vague concept
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-18
Lead Generation
lead offline lead offline purchase purchase
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-19
Lead Generation: Affiliated Marketing
Affiliated marketerAffiliated marketer:: company that exists solely to create leads for company that exists solely to create leads for otherother businesses businesses
Usually paid based on sales Usually paid based on sales
GGoal: to get a customer interested in a product and close the sale oal: to get a customer interested in a product and close the sale elsewhereelsewhere
Often acquires customers during early stages of decision makingOften acquires customers during early stages of decision making
An An affiliate programaffiliate program is created by the is created by the affiliate program sponsoraffiliate program sponsor Provide the affiliated marketers with links to place on their sites
Pay by cost-per-action or cost-per-lead
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-20
Lead Generation: Affiliated Marketing
53% of affiliate marketing programs expect to spend more in 2005 on such programs than they did in 2004
The average amount by which merchant expected to increase their 2005 spending on affiliate programs was 19%
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-21
Lead Generation: Affiliated Marketing
SEM for affiliated marketer:SEM for affiliated marketer: Choose your area wiselyChoose your area wisely
Research affiliate merchantsResearch affiliate merchants (discussion)
Build a strong information web siteBuild a strong information web site FFocus on ? ocus on ? SSearchersearchers Avoid competing with the sponsorAvoid competing with the sponsor
Contextual Ads:: scans the text of a Web site for keywords and returnsscans the text of a Web site for keywords and returns ads to the Web page ads to the Web page
based on what the user is viewing, either through ads placed on the page or based on what the user is viewing, either through ads placed on the page or
pop-up adspop-up ads
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-22
Lead Generation: Affiliated Marketing
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-23
Lead Generation: Offline Sales
Focus: re-direct traffic to offline sitesFocus: re-direct traffic to offline sites Often targets customers during the later stages of Often targets customers during the later stages of
their decision processtheir decision process Not significantly different from revenue-generating Not significantly different from revenue-generating
models in SEM strategymodels in SEM strategy However, measurement is drastically differentHowever, measurement is drastically different
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-24
Lead Generation: Offline Sales
From online to offline: Why?From online to offline: Why? Loyalty does migrate across channels: for every dollar spent Loyalty does migrate across channels: for every dollar spent
online, six will be spent offline [online, six will be spent offline [Jupiter Research , 2004] 43% of Internet users bought products from a retailer’s offline 43% of Internet users bought products from a retailer’s offline
store after viewing them on the seller’s Websitestore after viewing them on the seller’s Website
From online to offline: How?From online to offline: How? call to action: call to action: things you get someone to dothings you get someone to do
Shift people offline :promotion Shift people offline: personalization
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-25
Brand Image BBrand image:rand image:
the perception of a brand in the minds of personsthe perception of a brand in the minds of persons
Building brand image:Building brand image: EEmphasize on your awareness needs firstmphasize on your awareness needs first Use trendy designs could helpUse trendy designs could help Focus on paid placement for fast resultsFocus on paid placement for fast results
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-26
Brand Image How could SEM How could SEM hurthurt brand image? brand image?
Misuse of contextual adsMisuse of contextual ads Failure to show up under major key wordsFailure to show up under major key words
Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 5-27
Source: Search Engine Marketing Professional Organization