Search Engine Marketing (SEM)

Agenda

Why Does Search Matter?

Search 101

What Else Should You Know?

Current Trends

Leverage interest as media activity drives search activity Gain potentially high return on investment due to direct response nature

of campaigns

Lift your brands organic traffic and overall online visibility

Utilize search data and trends to better understand your target audience and inform your offline media planning decisions

Why does search matter?

Search at the Center of the Journey

37% of Online Searchers are driven by

television ads

30% of Online Searchers are driven by magazine & newspaper ads

17% of Online Searchers are driven by radio ads 9% of Online Searchers are

driven by outdoor media

25% of Users exposed to display ads searched on a

brand term

Search 101

What is Search?

ORGANIC SEARCH

(SEO)

PAID SEARCH (SEM)

2

How are Ads served?

Search is bought on a real time action model An advertiser determines the keywords they want to purchase, they are entered

into the auction and compete in real time versus other advertisers

1 A user conducts a search

Based on the query, a series of advertisers are triggered to appear

3

Based on an advertisers bid and relevancy, the search engine

algorithms determine which ads to serve

Advertisers only pay when

their ad is clicked

How is Ad Positioning Determined?

Max Bid Quality Score

Ad Rank

How much an advertiser is willing to pay for a keyword

A score Google gives each keyword based on various factors, but the main one being relevancy

Where exactly an ad appears on the search results page

Quality Score is critical because the better score a keyword receives, the less an advertiser has to pay in order to win an auction and maintain top positioning on the SERP

Leveraging Match Types For Better Results

Exact Match Phrase Match

Broad Match Any query containing the phrase “levi bold curve” “Levi bold curve”

• Queries containing ANY of the keywords (in any order)

• Singular & plural forms, synonyms and close variations included

Negatives

“font”

“levi bold curve cut”

“Levi bold” “levi jeans” “bold curve”

Query matches exactly what advertiser is bidding on

Queries the brand does not want to be associated with

SEM targeting allows for tailoring messaging to a query where and when it occurs

10

• Time of day or day of week

Day Parting

• Desktop, tablet, smartphone (including operating system)

Device

• Country, State, DMA, city and zip code

Geo Target

• Cross-sell; upsell; serve sequential messaging

Retargeting

• Search engines consider the default language in the browser and language used in the query

Language

Optimizations & Best Practices

Pacing

• Daily pacing according to authorized budgets and campaign flight

• Maintaining highest level of efficiency at the lowest cost

Bid Optimizations

• Keyword efficiency is measured based on CPC, CTR and CPA

• Bids are optimized to meet keyword efficiency threshold

Ad Copy Refresh

• Ad copy is optimized based on CTR and CPL

• New ads are added to the rotation to in an effort to drive actions efficiently

Use of Extensions

• Utilize ad extensions to increase performance and visibility on search engine results pages

Monitoring of Search Query Reports

• Show the actual search terms that were paired with the different keywords and match types to trigger your ad

• Assist in keyword expansions of relevant terms, and define negatives to be added to the account

Increase Performance with Search Extensions

Sitelinks: Enables deep links and drives an average CTR lift from 15-30%

App Extensions Show a link below your ad text that sends people to the app store or begins downloading your app

Call Extensions Let people click a button to give you a phone call

Consumer Rating Annotations Show off what customers appreciate with high-quality survey data

Review Extensions Showcase positive, third-party reviews from reputable sources

Location Extensions Help people nearby find your nearest storefront or give you a call

What Else Should You Know?

Search Engine Market Share

67.60%

28.70%

2.40% 1.30%

Google

Yahoo! | Bing

Ask Network

AOL, Inc.

As of January 2014:

Google takes up 67.6% of U.S. Market share Bing/Yahoo! held 28.7%

3.7% was dedicated to 2nd Tier Engines *Source: Comscore, January 2014

Source: www.solvater.com Source: www.globalmarketexposure.com

Advertisers can access Google and Bing’s network of search partners (syndicated search) to gain additional reach

SEO & SEM Synergy

• Collaborating SEO and SEM on average results in 79% incremental clicks over running only organic search* • Only 21% paid media clicks would displace what

could be organic traffic

• SEM and SEO are complementary disciplines that can benefit each other to increase conversion rates and share of voice

• Insights gained when buying pay per click (PPC) keyword ads can positively impact SEO initiatives, while natural search queries and click path data can, and should, influence keyword bidding.

21% Displaced Ad Clicks

Current Trends

Advertisers Continue to Increase Digital Budgets

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$10.00

$20.00

$30.00

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$60.00

2012 2013 2014 2015 2016 2017 2018

Spe

nd

(B

illio

ns)

US Digital Ad Spending, by Format

Search

Display

Digital video

Desktop total

Mobile total

*Source: Nomura Securities, "Americas Media & Internet," Feb 12, 2014

According to a study released by Nomura Securities in February, overall digital spending is expected to increase by 63% by the year 2018 Search spending alone has increased by between 15-20% per year for the last 4 years, a trend expected to continue for the years to come

Mobile Search Reshapes the Path to Purchase

With a mobile revolution under way, the desktop is finding a long-term home as a piece—but no longer the center—of the consumer journey. Key to the future of desktop search is understanding how it will be informed by mobile usage in terms of design and measurement

Marketers Future Challenge: To invest in a marketing mix that gives consumers what they need on mobile, and ultimately re-targeting them across device in a consistent format

According to E-marketer, desktop search is expected to decline $1.4 Billion as Google Users Shift to Mobile