"Planning, Budgeting and Keeping Exploration Alive"

212 New York 2009

Presented by:Bill Hunt

May 13, 2009

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Agenda

•Making the Case for Funding

• Creative Budget Options

•Integration into Master budget

•Group Discussion

Search in the Marketing Mix• Search is a critical marketing element both from a research perspective as well as a marketing tactic.

• The better we can integrate into the marketing mix the wider the adoption into the marketing organization we will have.

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AffordableSetting the Budget at the Level

the Company Thinks They Can Afford.

AffordableSetting the Budget at the Level

the Company Thinks They Can Afford.

Traditional Budget Setting Methods

Percent of SalesSetting Promotion Budget

at a Certain % of Current or Forecasted Sales

Percent of SalesSetting Promotion Budget

at a Certain % of Current or Forecasted Sales

Competitive ParitySetting the Budget to

Match Competitors’ Outlay

Competitive ParitySetting the Budget to

Match Competitors’ Outlay

Objective or Task Setting Promotion

Budget by Defining Objectives, Tasks & Costs.

Objective or Task Setting Promotion

Budget by Defining Objectives, Tasks & Costs.

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SWAG“Scientific Wild Ass Guess”

SWAG“Scientific Wild Ass Guess”

Search Budget Setting Methods

Cost Per ActionMathematically derived budget

based on allowable

Cost Per ActionMathematically derived budget

based on allowable

Keyword DominanceA budget based around ownership of specific

keywords & share of voice

Keyword DominanceA budget based around ownership of specific

keywords & share of voice

Objective or Task Setting Promotion

Budget by Defining Objectives, Tasks & Costs.

Objective or Task Setting Promotion

Budget by Defining Objectives, Tasks & Costs.

Successful Recession Budgeting

Increased Budget

Closes a Gap

Compliments Current Activities

Demonstrated Conversions

Motivating management

to want to spend on

search

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Selling your budget to Management We will spend wisely & effectively

How it will close a Gap or Missed Opportunity

How it will compliment Campaign Goals & exceed Objectives

How you can show desired actions

Do activities in advance with little to no expense to demo the concept

Don’t Compare to other marketing tactics lesser performance

Don’t box in or embarrass the CMO

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“We’ll spend the money well” We will experiment with small amounts of money

We can buy buy-cycle keyword phrases at lower Cost Per Click

Paid & Organic Synergies

We will measure constantly We will drop poor performing

keywords

We will increase spend on what is working

Monitor Collaboration with other tactics

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Competitive Forces

Show competitor’s ads Most execs rise to the challenge of

being beaten by competition

Show examples of successful affiliates Are your affiliates beating you on your

own products?

Develop missed opportunity matrix How many searches for each term?

What is the expected revenue that your competition now gets?

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Objective: Spend the most money where you can get the highest return

Conversion Rate Estimations

1% 3-5%+ 2-5%

# of terms Up to 50 terms 5,000 – 50,000 terms100 – 500 terms

CPC Expensive Moderate to Expensive Inexpensive

Budget Allocation By Segment

Learn BuyShop

Search Volume High LowMedium

•Customer Relationship Management (CRM)

•Notebook Computers

•CRM White Papers

•P4 Notebook Computer

•CRM Vendors or Canon 50D

•ThinkPad T30Keywords

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Missed Opportunity MatrixCurrent Missed Current

Keyword Monthly Annual Visits Visits 10% 25% Google RankKeyword 1 59,130 709,560 591 58,539 5,913 14,783 25Keyword 2 41,580 498,960 416 41,164 4,158 10,395 45Keyword 3 40,050 480,600 401 39,650 4,005 10,013 22Keyword 4 31,560 378,720 316 31,244 3,156 7,890 88Keyword 5 23,700 284,400 237 23,463 2,370 5,925 120Keyword 6 19,860 238,320 199 19,661 1,986 4,965 75Keyword 7 12,660 151,920 127 12,533 1,266 3,165 46Keyword 8 7,740 92,880 77 7,663 774 1,935 82Keyword 9 6,210 74,520 62 6,148 621 1,553 38Keyword 10 1,230 14,760 12 1,218 123 308 98

Total Searches/Visitors 243,720 2,924,640 2,437 241,283 24,372 60,930

Results Current 10% 25%

Visitors 2,437 24,372 60,930

# Leads @ 10% Conversion 244 2,437 6,093

Increased Traffic Potential

Estimated Searches Potential

Show the Gap

300k searches

$1.125M Sales

(3% conversion rate)

(5% click through)

($2.5K average trans.)

Total Budget - $50,000

150 critical “Buy Phase” Keyword phrases – Zero Exposure

Show the Gap

Show “Easy Fix” Issues that will have immediate impact

Search Phrase: Ford SUV

Search Phrase: Ford truck fuel efficiency

Help Marketers Understand the Impact

Search Engines

Awareness Generation

Mass Media/Adverts

Press/PR

Events/Promotions

Word of Mouth

Create initial awareness of product/service

Engagement, Lead Capture, Commerce

Engagement

Topical Sites Blogs & News Sites

Search placements are key to direct those who don’t know where to go after initial awareness

Social Media

Competition

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Makes Display More Effective• Better brand awareness

• Visitors have 60% greater recall of sites found in search vs. 20% for banner ads and tiles (2008 IAB)

• Extend the reach of Display Ads

• “27% of internet users search as their “initial” response to an online display ad”

• Better Return on Investment with collaboration• 49% of Internet users who respond to online display ads

eventually perform a search related to the ad

• 14% performed the search and purchased the productSource: iProspect & Forrester Search & Display Report 2009

0%

50%

100%

150%

200%

250%

300%

350%

12/12/2005 12/19/2005 12/26/2005 1/2/2006 1/9/2006 1/16/2006 1/23/2006 1/30/2006

Demonstrate Search Demand from TV Adverts

Chart: Daily volume of Google.com searches on “rarget keywords)” originating from the US

Event 1Demand up 78%

Event 2Demand up 134%

Event 3Demand Up 134%

Event 4Demand up 217%

Baseline:Dec. 12 – 18

What happened when?

• 16/20 highest CPC terms had Top 4 ranking• 8/20 highest CPC terms converted 2x via organic

more than PPC (12 of 20 PPC converted better)• 2 of highest CPC terms had no Google rankings

$1.3 million increase in clicks

Combined PPC & Organic Data

What happened when?

• Tested subject lines with PPC• 220% increased open rate

• Paid Search keyword/offer with email retargeting• 45% increase in leads going to next step of conversion

$700k in new revenue

Combined PPC & eMail Marketing

What happened when?

• Click rate on PPC/Organic results increased 85%

• Bounce rate decreased from 65% to 20%• Depth of Engagement increased 145%

78% increase in conversion

Intent Modeling & Landing Pages

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Tips for getting your SEM Budget

• There is rarely any “NEW MONEY” so give sold justification of what should be cut and the business case for change.

• Understand the goals of the current budget allocations and show how search can compliment or increase results over current spend

• Explain the situation with general and specific market data

• Explain competitive pressures & missed opportunities• Prepare for turf warfare and budget battles• Your traditional or interactive agency may be your

biggest barrier

Group Discussion

ContactNow to May 29th Bill Hunt CEO, Global Strategies bill@globalstrategies.com Twitter: billhunt

After May 29th bill@whunt.com Twitter: billhunt