Searching All Over the World

Simon GreenmanWerbeplanung.at Summit 10Managing Director - Online, European DirectoriesVienna, 15th-16th July 2010

A View From Outside Austria

Introduction

Simon Greenman, MD Online - European Directories

Who is European Directories? Local search and lead generation company

Total revenues circa €700M in 2009

Operations in eight countries – Finland, Sweden, Denmark, Netherlands, Austria, Czech, Slovakia and Poland

Leading country brands including

Over 740,000 small business customers serviced by over 3,000 sales representatives

So what can we learn from other countries? Lets take a look at what is happening around the world.

2Commercial in Confidence

European Directories Country Footprint

How Much Advertising is Online?*

Country Forecasted Size of Ad Market 2010 (€M)**

% Advertising Online

US 109,254 17%

UK 13,607 33%

Germany 15,860 17%

Netherlands 3,397 19%

Sweden 2,258 25%

Austria 2,518 8%

* groupM Autumn 2009 “This Year, Next Year Worldwide media and marketing forecasts”** all in EUR at exchange rate 8/7/10

Austria is an under developed market for online advertising. 8% of total advertising is online versus 17-33% in other markets.

How Much Paid Search is Online?*

Country Forecasted Size of Ad Market 2010 (€M)**

% Advertising Online

% Paid Search Online

UK 13,607 33% 21%

Netherlands 3,397 19% 13%

Sweden 2,258 25% 8%

Austria 2,518 8% 3%

* groupM Autumn 2009 “This Year, Next Year Worldwide media and marketing forecasts”** all in EUR at exchange rate 8/7/10

Compared to highly developed markets, paid search is a tiny fraction of total advertising market. 3% compared to 13% in Netherlands and 21% in UK.

What About the Online Media Mix?

Country % Advertising Online

% Paid Search Online

Paid / Online Advertising Media Mix

UK 33% 21% 64%

Netherlands 19% 13% 68%

Sweden 25% 8% 31%

Austria 8% 3% 34%

* groupM Autumn 2009 “This Year, Next Year Worldwide media and marketing forecasts”** all in EUR at exchange rate 8/7/10

Compared to highly developed markets such as Netherlands and UK, Paid Search in Austria is much a smaller part of online media mix.

Huge Growth To Come in Austrian Paid Search Market

•groupM Autumn 2009 “This Year, Next Year Worldwide media and marketing forecasts”** all in EUR at exchange rate 8/7/10

While CAGR growth rate in Austria of 45% has been in the middle of the range, Austria is starting from a very low base.

2005 - 2010 CAGR %

UK 25%

Netherlands 34%

Sweden 61%

Austria 45%

And Search is Cheap in Austria (for Now)!*

Category Cost of ClickAustria

Cost of ClickDenmark

Cost of Click US

Bauspenglereien / Building Plumbers

€0.22 €0.49 €3.26

Bauunternehmen / Construction Companies

€0.16 €0.66 €2.11

* Data courtesy of Matchcraft, inc** all in EUR at exchange rate 8/7/10

Search is cheap in Austria for now, with prices in the relatively mature US market consistently 10x Austria.

So What Should You Do?

Take advantage of the “good times.” SEM is: Cheap and has a fantastic ROI in many categories; and

Relatively little effort to design and manage campaigns.

But recognise that prices will rise along with the time and complexity of campaign management. What should you do?

1. Buy clicks smartly based on tracking and optimisation technology

2. Maximise ROI of search spend by maximising website conversion

3. Ensure that your traffic is from multiple sources. Look at vertical search sites.

How to Win Online - Compare the Meerkat Example

9

Vertical Specialists with Strong Brands Get ‘Free’ Traffic & Gain Share….“Compare the Meerkat”

10

‘car insurance’ queries -20% in two years

‘compare the market’ queries +400%

Driving Website Effectiveness – Increase Conversion Rates

11

Driving Website Conversion – Examples of Enhancing Your Website

12

Site Search Results Test

•Testing the ‘ideal’ search results reduced search exits by 19%

•Applied across all searches would increase revenues by 4.1%

Email Sign Up Test

•Having the sign up above the fold increased sign ups by 38%

•Above the fold and new creative increased sign ups by 89%

Landing Page Test

•Changing the landing page on high vol. driving term reduced bounce rate by 37%

•Per visitor value increased by 107%

Product Category Test

•Changing product category page to large images and 2x3 layout increased add to basket by 10%

•This turn increased conversion by 6%

So What Should You Do?Choose A Proven Partner

Choose an online marketing partner that is experienced in a broad range of online products and media

Talk to Herold! They offer a full suite of lead generation products across print, online, mobile and even TV. Offer turn-key products such as:

Yellow Pages Directories

Websites

Video

SEM

Affiliate Marketing

Banner advertising

The key is that your partner understands how the market will evolve and can guide you through this changing landscape.

13Commercial in Confidence

But The World of Online Is Changing Very Quickly!

76 billion searches in July 2009

58 million global visitors in Sep 2009

7.5 million phones sold in last three months

400 million active users8 billion minutes of usage every day1.4 million business fan pages

Over 1 billion video views a day11,575 views per second

11 years old

2 years old

2 years old

5 years old

4 years old

6 years old

480 million registered users

25 million unique visitors in Aug 2009

20 million unique visitors in May 2009

2 years old

5 years old

30 billion references in 2008 100 years old

Plan to Change Your Plan!

Especially Mobile and Facebook

Simon Greenmans . g r e e n m a n @ e u r o p e a n d i r e c t o r i e s . c o m

Managing Director - Online, European DirectoriesVienna, 15th July 2010

Searching All Over the World