The Latest Trends inInternet Marketing 2007

Panelist Introductions

• Andy King, founder, Website Optimization& author “Speed Up Your Site”

• Daniel O'Neil, Alchemist & Lead Analyst,Pure Visibility

• Abbey Beardslee, Sale Planner,MySpace.com/FOX Interactive

Search Engine MarketingTrends - The Shift to SEO

Andy Kingwebsiteoptimization.com

SEM to nearly double by 2011

Why more SEM?

• Advertising budgets shifting to Net• PPC prices rising (Google auto-pilot)• More measurable metrics• TV, radio, newspapers, yellow pages down• More companies entering the market

Shift from offline to online marketing

Shift from Traditional to New Media

Shift from PPC to SEO

• PPC/SEO from 2.4 to 1.1 from 2007 to 2012• PPC costs rising

– ~6 times $1+ keywords in Jan. 2007 vs. Jan.2006

– Ave CPK rose 33% each month in Q1 2006– Ave CPC rose 55%/month Jan. 2006 to Jan. 2007

DoubleClick, “DoubleClick Performics 50 – Search Trend Report Q1 2007,”(New York: DoubleClick Inc., June 2007), 1, http://www.doubleclick.com/insight/research(Nov. 17, 2007).

PPC Costs Rising Over Time

“DoubleClick Performics, “Q1 2007 Search Trends Report,” (DoubleClick, 2007), 2.http://www.doubleclick.com/insight/pdfs/DoubleclickPerformics50_Q1_2007.pdf.

How to boost ROI?

• Make ad spend more efficient• Optimize PPC campaigns• Long term SEO equal to PPC (trend)• Optimize everything with web metrics• Optimize conversion rates

– Web site optimizer (Google)– A/B/C split testing– Test, try, and retest

Search ROI vs. Other Tactics

Measuring Metrics

• 43% of marketers don’t/can’t accuratelymeasure ROI from SEO (Jupitermedia, 2007)

• Only 6-15% of companies are fullyintegrated (eMarketer, 2007)

• Basic metrics most used (traffic,impressions)

Web Metrics Integration

Measuring SEM Firms

• Amount of Web Traffic (58%)• Total sales (50%)• ROI from search marketing (49%)• Search engine ranking (48%)• Number of clicks (43%)• Return on advertising spend (42%)

Jupiter Research SEM Executive Survey, 2/07

Measuring Meta Tag Usage

Meta tag trends

• Keywords (34.2%) description (31.8%)used most

• Title, metadata Title, Subject, and Descriptionfields most important for SEO rankings

• 7.4% use Dublin core, less effective for SEO• Only 1.7% use metadata Title, yet impacts SEO

Zhang, J., and I. Jastram, “A study of the metadata creation behavior of different user groups on the Internet,” InformationProcessing and Management 42 (2006): 1099–1122.

Zhang, J., and A. Dimitroff, “The impact of webpage content characteristics on the webpage visibility in search engine results(Part I),” Information Processing & Management 41 (2005): 665–690.

Zhang, J., and A. Dimitroff, “The impact of metadata implementation on the webpage visibility in search engine results(Part II),” Information Processing & Management 41 (2005): 691–715.

Search Query Trends

Bogatin, D., “Yahoo: ‘Searches more sophisticated and specific,’” (San Francisco: CNET Networks, Inc., May 18, 2006).http://blogs.zdnet.com/micro-markets/index.php?p=27 (July 17, 2007).Pasca, M., “Organizing and Searching the World Wide Web of Facts - Step Two: Harnessing the Wisdom of the Crowds,” WWW 2007,(Banff, Alberta, Canada, May 8–12, 2007): 101-110. Google statistics.Oneupweb, “How Keyword Length Affects Conversion Rates,” (Oneupweb, 2005). (accessed June 15, 2007).

How to boost SEO rankings?

• Fully optimize Title tags (up to 3 keywords)• Build backlinks baby• Build PageRank (see #2)• Use Web 2.0/Social Media• Fresh keyword-optimized content• Stay out of Google “sandbox”• Longer to reach top rankings 6 -> 12 months

Spread of news in Blogistan

Cohen, E., and B. Krishnamurthy, “A short walk in theBlogistan,” Computer Networks 50 (2006): 615–630.

• Takes about 1 week for the averagestory to peak in links in the “blogistan”

• Staged release may be more effective• Blogs and RSS feeds are powerful for

backlinks• Press releases guarantee links

SEM Resources

• MarketingSherpa.com - research firm• SEMPO.org - SEM industry professionals• eMetrics.org - marketing conferences• FutureNowInc.com -conversion rate optimization• SEOMoz.org - ranking factors survey• SearchEngineLand.com - Danny Sullivan• WebsiteOptimization.com/presentations

Metrics for the Masses - How improved metrics will redefine

what we sell and how we sell it!

Daniel O’Neil Pure Visibility Inc.

Metrics and Marketing havebeen uneasy bedfellows

“The time has come when advertising in somehands has reached the status of science.”

-- Claude Hopkins, 1923

“I know half of my advertising is wasted; I justdon’t know which half.”

-- John Wannamaker, ca 1910

85 years later...

Market Measurement has grownexplosively thanks to Google Analytics

• A free tool that allows detailed traffic profilesat a level of quality second only to high-costproducts like Omniture’s SiteCatalyst orWebTrends

• Business-oriented data, not geek-oriented data• Can be used to to make non-intrusive inquiries

into your clients and visitors’ needs.

The short-term trend: analyticswill be as common as Outlook

• Terms that are becoming more and more common:– ROI– Cost per Lead– Cost per Conversion– Sales Funnel considerations– “Stickiness”

• Web marketers that don’t promise metrics -- andthe ability to explain metrics -- will not do as wellas those who do.

The long-term trend: Analytics will be usedto create sustained, detailed user profiles

Company

Product Line Books, some Media(Deep)

DVD Media, some MovieDownloads (Deep)

Consumer Goods(Broad, Deep)

Business Model Brick and MortarCommodity Purchase

Online SubscriptionService

Online CommodityPurchase

Knowledge of CustomerPreference

Low High High

Degree of CustomerFeedback

Low High Medium

Number of Customeractions captured

Very Low High Medium - High

Length of Transactionalhistory

0-1 ongoing, changes dailyand weekly

per login/purchase orbrowse

How will the business model change?

• Increase in measurable “Micropurchase” business models

– Subscriptions and Serials

– Tracked sampling offerings and price-reduced to get data

– Attribute bundling (enrich what a product is by addingreviews, friend recommendation, etc.)

• Increasingly commodities become monetized throughservices. The Amazon and Netflix web properties are servicesthat contribute to the sale of commodities.

- Amazon’s customer retention in 2002 was 60%;in 2004 it was 78%.

These ideas are not new, butthey have been slow to grow.

• Netflix’ model has been mature since about 2003;Amazon’s model continues to evolve, but reachedNetflix’ standard around 2005-2006. Then theysurpassed it!

• Traditional merchandising companies have been slowto catch up because in order to make it work, ameasurable, superior SERVICE has to be the core goalof any website.

• It doesn’t have to be “High Tech”, but the vision hasto be clearly defined and supported by theorganization-The Ann Arbor District Library gets it, but Target doesn’t!

Resources and links

http://www.purevisibility.comhttp://recsys.acm.org/program.html

http://analytics.google.comhttp://www.aadl.org

Competing on Analytics: The New Science of Winning.Davenport, Thomas H.; Harris, Jeanne G.

Branding and Positioning –Be Something No One Else Is

Abbey Beardslee, Sale Planner,MySpace.com/FOX Interactive

OUR CORE VALUEPROPOSITION:

MySpace is the mosteffective platform toreach the youth market,offering unparalleledreach and compositionamong trend-settingyoung adults.

What Is MySpace?

How We’ve Grown…

In just 3 years, MySpace hasachieved portal-sized reach…

– 71 MILLION MONTHLY USERS¹

We’ve become the premierdestination for young adults…

– 26 MILLION 18-34 YEAR OLDS

We’ve developed the highestcomposition of 18-34 year oldsof all broad reach sites…

– 37% COMPOSITION

We provide both scale and coverageof the trend-setting young adultaudience

Source: ¹comScore Media Metrix, June 2007, US

SOCIAL NETWORKINGSTARTS HERE…• 68.4 million monthly users• 82% of members are 18+• 38% reach of the US online population• 45.2 billion page views per month• 14.2 billion total minutes per month• Average of 207.3 minutes per user per month• 58% of Social Networking market share• 24.8 average visits per visitor• 43% reach against all adults 18-34• 37% reach against HH Income 75k+

* Duplication between Social Networking sites not shownSource: comScore Media Metrix, US data – August 2007

MySpace is Home for Social Networking Users

68,392,000

62% of the Facebookaudience visits MySpace 60% of the YouTube

audience visits MySpace

58% of the LinkedInaudience visits MySpace

The Most Efficient Way ToReach 18-34 Year Olds Online

REACH, COMPOSITION AND CONSUMPTION AMONG 18-34 YEAR OLDS

LOW REACH, HIGH COMPLOW REACH, LOW COMP

REACHUnique Visitors (000)

COMPOSITIONPercent

HIGH-REACH, LOW COMP HIGH-REACH, HIGH COMP

Size of bubbleindicates pageviews (MM)

..

..

The Momentum Effect In Action:Smart Media + Brand Community = Momentum

MySpace Campaign: EA Burnout Band Slam 2 Results: Momentum-Driven ROI*

• EA launched an international band competition topromote a video game release

• Winning band’s music is featured in Burn Out Gameplus a Virgin Record Label

• The brand community encouraged viral pass-alongby allowing users to forward content to friends

• Standard media was also utilized to drive contestawareness and traffic to community

MYSPACE MEDIA AND MOMENTUM DRIVES6-15X THE IMPACT OF OTHER ONLINE MEDIA

Source: 1NEF study, April 2007, commissioned by MySpace, Isobar and Carat

Momentum EffectAdvertising Effect

6X

"Definitely Will Purchase"

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Online Advertising MySpace Advertising

ROI:Extraordinary

15X

plus Momentum EffectPe

ople

Impa

cted

Per

$10

0,00

0 Sp

ent

*** Close to 7,000 contest submissions!!

MYSPACE MEDIA BENEFITS:

• High-reach—The most efficient wayto reach 18-34 year olds online

• Highly effective—MySpace mediadrives brand awareness

• High value—Cost-effective relativeto all broad-reach competitors

• Highly targeted—Segment usersbased on freely expressed passions

HIGH REACH

HIGHLY TARGETED

HYPERTARGETING

ENTHUSIASTTARGETING

PREMIUM CONTENT

USER HOMEPAGE

MYSPACE HOME PAGE

MySpace Media Is Smart And Effective

VIDEO - Competitive Landscape

Poised for explosive growth, MySpaceTV will be a market-leading videodestination.This Chart compares “total unique video viewers”

30.1

4.6%

26.6

11.0

386,724

35,024

Yahoo!

17.3

7.6%

36.4

13.2

635,036

47,985

MySpace

17.815.468.0Minutes per Viewer

2.0%2.2%20.5%Share of Videos

18.522.347.2Viewer Penetration

7.06.327.6Videos per Viewer

171,155184,7221,715,068Videos (000)

24,39429,47962,206Total Unique Viewers (000)

MSNAOLYouTube

Thank you!

Abbey Beardsleeabeardslee@myspace.com

Next Month: 12.11.07

Smart Spending - How to Measure the Return onYour Marketing Investment

Moderator: Debra Power, Power MarketingPanelists:• Archie Sader, Integrated Marketing

Communications, EMU• Jon Boyd, The Home Buyer's Agent of Ann

Arbor• David Bloom, Optimization Group