SEM: A Quantitative Marketer’s Approach

SEMCON, Manila 9 Sep 2008

Structure

1. Search Marketing = Relevancy Marketing2. Search Marketing using Dynamic Database

Driven Site Architecture - Data3. Search Marketing using Dynamic Ads4. The Holy Google Equation5. Randomized Multivariate Testing

ITS ABOUT RELEVANCY, RELEVANCY RELEVANCY AND RELEVANCY

Its not only about Keyword Research

The new mantra: Relevancy to Consumer Intent

• Search engines say: – “the consumer is Mine, not yours; – My consumers will stay loyal to me as long as I give

them relevant content on Search Engine Result Pages (SERP), which is my sole product

– you, the marketer have the privilege of showing your message on the SERP, but;

– The more relevant your message, the more you benefit.

– The less relevant your message, the more you suffer

Media Cost and Relevancy

Old Media New Media

1. Search Marketing using a Dynamic, Database Driven approach

The Task

• Identify all intents that matter to the brand• “Intercept” such intents with an experience

that is maximally relevant to that specific intent state

• Maximize this across millions of intent states

Live Case Study

Affiliate Marketing Solution for BookingWiz Affiliate network using

Dynamic database driven Site architecture

A Tale of 2 Cities

• Flights from Chicago to Boston• Flights from Boston to Chicago• Flights to Chicago• Flights to Boston• Flights from Boston• Flights from Chicago

For K cities: Combinations = 6 x K Factorial 2

The Solution • A database driven site, with Data and Metadata

being stored in a database• URL Re-writing based on Intent State –

recommended and liked by Spiders• Maximizes relevancy between Intent State and

Content of Page

All done to get INDEXATION and Free Referral Traffic from Search Engines

The solution

www.bookingbargains.com

SEO Traffic

• Over 5,000 Pages indexed by Google in first 6 weeks

• Significant Organic Traffic

But, from a Paid Search Perspective, it ROCKED !

Rank of Keyword

Keyw

ord

Que

ry V

olum

e

HEAD

TAIL

Actions per Session for Dynamic Site

Actions per session for Static Site

1.0

1.50

METRIC 1

Rank of Keyword

Keyw

ord

Que

ry V

olum

e

HEAD

TAIL

CPC for Dynamic Site

CPC for Static Site

1.0

0.80

METRIC 2

Rank of Keyword

Keyw

ord

Que

ry V

olum

e

HEAD

TAIL

CPA for Dynamic Site

CPA for Static Site

1.0

0.55

METRIC 3

2. Search Marketing using Dynamic, Database Driven Ads

using Engine APIs

Google SERPCustomer

Search Ad

MSN

Video

MSN Video Promotion

Challenge: How to maximize relevancy and CTR% of the ads ?

Solution: Dynamic ads, that have current test scores will induce a better response that Static ads

Technology:Obtain current scores and input into ads programmatically via Engine APIs

Reduce CPA, Grow Volumes

Case Study 2: Media Buying – Lowering CPA by increasing relevance

CreativeAverage

CTR%Average

CPC

Dynamic 550 27

Static 100 100

3. The Holy Google Equation

The One Equation to Rule them all

IS (Actual) + IS (Lost QS) + IS (Lost Budget) = 100

23 + 36 + 41 = 100

Optimisation for a Airline Client

Jan JulyIS Actual 16 100IS Lost QS 44 0IS Lost Budget 40 0Clicks 100 65CPC 100 20Conversion 100 800ROAS 100 4000

Focus on Highest QualityKeywords

80% Fall in CPC800% increase in Conversion%Increase in ROI of 4000 %

4. Multivariate Testing

For optimizing Landing Page Engagement

Why: 1

• Search is a Means to an End it is NOT the end !!• The END is to drive Engagement

Why: 2

• Engagement is proportional to Landing Page Conversion Rate

• Cost Per Unit Engagement = CPC / Conversion Rate

• Conversion Rate is a Bigger Lever than CPC

Why: 3