Fall 2006 Davison/Lin
EXECUTION: How to Make
SEM Work
PLANNING: Things to Know
BEFORE You Start…
INTRO: What is SEM
CSE 197/BIS 197: Search Engine Strategies 5-1
How Searchers work
How SEM Works
How Search Engine Works
Why SEM?
Search Engine Strategies:
Road Map
Fall 2006 Davison/Lin
PLANNING: Things to Know
BEFORE You Start…
CSE 197/BIS 197: Search Engine Strategies 5-2
SEM Proposal
How to sell it?
Strategic Planning
How to do it?
Measure SEM performance
How good is my search?
Site Analysis
How good is my site?
Goal Analysis
Why SEM?
Module II Overview
Fall 2006 Davison/Lin
Place
g
it n
ke sis
r
a y
M nal
a
Price
CSE 197/BIS 197: Search Engine Strategies 5-3
Promotion
Target
Customers
Product
M
i ark
m
p e
l
e ting
m
e
n
ta
t
io
n
Before We Start: Marketing Basics
g
it n
ke ing
r
a n
M lan
p
g
it n
ke ol
r
a r
M nt
co
Avoiding threats, analyzing weaknesses
In SEM context: Define Goals
−
−
Analysis of current situation
Targets and positioning, Marketing mix
Budget &Controls
In SEM context: Form Strategy
−
−
−
−
CSE 197/BIS 197: Search Engine Strategies 5-4
Executive summary
−
Marketing Planning
Finding opportunities, understanding strengths
−
Marketing Analysis
Fall 2006 Davison/Lin
Before We Start: Marketing Basics
Good implementation is a challenge
In SEM Context: Module III
−
−
Checks for differences between goals and performance
In SEM Context: Measurement
−
−
CSE 197/BIS 197: Search Engine Strategies 5-5
Evaluation of the results of marketing strategies
−
Marketing Control
Plans are turned into action with day-to-day activities
−
Marketing Implementation
Fall 2006 Davison/Lin
Before We Start: Marketing Basics
How to measure your success: not all clicks are
created equal
Whether to focus on paid or organic search
Your SEM strategy
Paid Placement: 82 hours a month
Organic SEO: 59 hours
Paid Inclusion: 17 hours
−
−
−
Most Internal Time on SEM is Spent on Strategy
and Analytics [SEMPO]
−
−
−
Your Goal Determines:
Fall 2006 Davison/Lin
CSE 197/BIS 197: Search Engine Strategies 5-6
Boris: “One dollar per click may not seem like a lot, but it is important that a
click is not a purchase”
Identify Your Web Site’s Goals
DELL
New York Times
WalMart
http://bookreporter.com/
McDonald
The Army
Fall 2006 Davison/Lin
AMAZON
CSE 197/BIS 197: Search Engine Strategies 5-7
What are the Goals of
These Web Sites?
Difference between product & service
Difference in timing of purchase
Difference in supply chain role
CSE 197/BIS 197: Search Engine Strategies 5-8
Online offline: channel integration
Affiliated marketing
Build Brand Image
−
−
Generate Leads
−
−
−
Generate (direct) Revenue
Fall 2006 Davison/Lin
Web Site Goals
Example: Buying a cell phone vs. downloading ring tones
−
Post-sales support
−
Impulse purchase: Justifies SEM
Where did all the visitors go? --- 70% shopping cart abandonment [Gold 2005]
−
−
CSE 197/BIS 197: Search Engine Strategies 5-9
Impulse purchase: from 25% to 40% (2000 – 2003)
−
The Importance of Being Compulsive
Shipping and handling
−
Difference in business models:
Example: amazon.com vs. iTunes store
−
The book calls them “online commerce” vs. “pure online”
Fall 2006 Davison/Lin
Physical Products vs. Digital Products
Revenue Generation:
Fall 2006 Davison/Lin
CSE 197/BIS 197: Search Engine Strategies 5-10
Physical Products vs. Digital Products
Revenue Generation:
Easier to surf, easier to buy
−
−
Transactional?
Informational?
Navigational?
CSE 197/BIS 197: Search Engine Strategies 5-11
If you offer digital (or real time) products/
service, target:
SEM Implication
The faster, the better
−
Factors contributing to impulse purchase
Fall 2006 Davison/Lin
Physical Products vs. Digital Products
Revenue Generation:
To skip or not to skip?
−
WHAT to focus? Product-oriented vs. customer-oriented
WHO to serve? Frequency of return visits
WHAT KEYWORD? Specific vs. general
−
−
−
CSE 197/BIS 197: Search Engine Strategies 5-12
Both depend on revenue generated through transactions
−
Manufacturer vs. Retailer: a web perspective
The myth of disintermediation
−
Internet brings changes to traditional business model
Fall 2006 Davison/Lin
Manufacturer vs. Retailer
Revenue Generation:
Fall 2006 Davison/Lin
CSE 197/BIS 197: Search Engine Strategies 5-13
Manufacturer vs. Retailer
Revenue Generation:
−
−
−
Navigational?
Transactional?
Informational?
SEM Implication
Fall 2006 Davison/Lin
CSE 197/BIS 197: Search Engine Strategies 5-14
Manufacturer vs. Retailer
Revenue Generation:
Premium subscription
−
Navigational?
Informational?
Transactional?
Organic or paid?
−
−
−
−
SEM Implications:
Ad revenue
−
CSE 197/BIS 197: Search Engine Strategies 5-15
A special(?) revenue model
Fall 2006 Davison/Lin
Information / entertainment provider
Revenue Generation:
Fall 2006 Davison/Lin
Source: Search Engine Marketing Professional Organization
CSE 197/BIS 197: Search Engine Strategies 5-16
Lead generation: finding new customers that may
purchase eventually
−
−
CSE 197/BIS 197: Search Engine Strategies 5-17
Affiliated marketing vs. offline purchase
The difference is the timing: a vague concept
This category covers both “lead” and “offline
purchase” in the textbook
−
Lead: new customers
Fall 2006 Davison/Lin
Lead Generation
Fall 2006 Davison/Lin
lead
CSE 197/BIS 197: Search Engine Strategies 5-18
offline purchase
Lead Generation
Often acquires customers during early stages of decision making
Goal: to get a customer interested in a product and close the sale
elsewhere
Usually paid based on sales
Pay by cost-per-action or cost-per-lead
−
CSE 197/BIS 197: Search Engine Strategies 5-19
Provide the affiliated marketers with links to place on their sites
−
An affiliate program is created by the affiliate program sponsor
−
−
−
Affiliated marketer: company that exists solely to create leads for
other businesses
Fall 2006 Davison/Lin
Affiliated Marketing
Lead Generation:
CSE 197/BIS 197: Search Engine Strategies 5-20
The average amount by which merchant expected
to increase their 2005 spending on affiliate
programs was 19%
53% of affiliate marketing programs expect to
spend more in 2005 on such programs than they
did in 2004
Fall 2006 Davison/Lin
Affiliated Marketing
Lead Generation:
Avoid competing with the sponsor
−
CSE 197/BIS 197: Search Engine Strategies 5-21
scans the text of a Web site for keywords and returns ads to the Web page
based on what the user is viewing, either through ads placed on the page or
pop-up ads
Contextual Ads:
−
−
Build a strong information web site
Focus on ? Searchers
Research affiliate merchants (discussion)
−
−
Choose your area wisely
−
SEM for affiliated marketer:
Fall 2006 Davison/Lin
Affiliated Marketing
Lead Generation:
Fall 2006 Davison/Lin
CSE 197/BIS 197: Search Engine Strategies 5-22
Affiliated Marketing
Lead Generation:
−
−
−
CSE 197/BIS 197: Search Engine Strategies 5-23
Often targets customers during the later stages of
their decision process
Not significantly different from revenue-generating
models in SEM strategy
However, measurement is drastically different
Focus: re-direct traffic to offline sites
Fall 2006 Davison/Lin
Offline Sales
Lead Generation:
43% of Internet users bought products from a retailer’s offline
store after viewing them on the seller’s Website
Loyalty does migrate across channels: for every dollar spent
online, six will be spent offline [Jupiter Research , 2004]
Shift people offline :promotion
Shift people offline: personalization
−
−
CSE 197/BIS 197: Search Engine Strategies 5-24
call to action: things you get someone to do
−
From online to offline: How?
−
−
From online to offline: Why?
Fall 2006 Davison/Lin
Offline Sales
Lead Generation:
the perception of a brand in the minds of persons
−
−
−
CSE 197/BIS 197: Search Engine Strategies 5-25
Focus on paid placement for fast results
Emphasize on your awareness needs first
Use trendy designs could help
Building brand image:
−
Brand image:
Fall 2006 Davison/Lin
Brand Image
−
−
CSE 197/BIS 197: Search Engine Strategies 5-26
Misuse of contextual ads
Failure to show up under major key words
How could SEM hurt brand image?
Fall 2006 Davison/Lin
Brand Image
Fall 2006 Davison/Lin
Source: Search Engine Marketing Professional Organization
CSE 197/BIS 197: Search Engine Strategies 5-27
Fall 2006 Davison/Lin
CSE 197/BIS 197: Search Engine Strategies 5-28
Summary