Search Marketing – Session 1

INTRODUCTION TO SEARCH MARKETING

 Learning Objectives

• Role of Traffic Building in meeting Business Objectives

• Overview of different advertising types
• Characteristics of Search Marketing
• Definition of key terms

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 Traffic Building

• Generally speaking, building traffic is vital to achieving Digital Marketing

objectives:

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 Traffic Building

• Generally speaking, building traffic is vital to achieving Digital Marketing

objectives:

Sell Serve Speak Save Sizzle

Grow sales Giving Creating 2-way Save costs through Enhancing
through wider customers extra dialogue leveraging brand image
distribution information or through digital efficiencies in through use of
and reach services online channels service and delivery digital assets

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 Traffic Building

• Generally speaking, building traffic is vital to achieving Digital Marketing

objectives:

Sell Serve Speak Save Sizzle

Grow sales Giving Creating 2-way Save costs through Enhancing
through wider customers extra dialogue leveraging brand image
distribution information or through digital efficiencies in through use of
and reach services online channels service and delivery digital assets

• Components of Traffic Building:

• Targets
• Techniques
• Timing

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 Targets

• Specific objectives for traffic building need to be developed before

embarking on a traffic building campaign.

• Typical traffic targets include:

• Quantity
• Quality
• Cost

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 Targets - Quantity

• Quantity broadly refers to the volume of users attracted to the property.

• These can be further segmented into:

• New Users
• Repeat Users
• Users with specific characteristics
• Users from specific channels

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 Targets - Quality

• Quantity by itself might not be useful unless we consider the Quality of

traffic.

• Some questions by which to evaluate quality of traffic:

• Are they within the target audience that you wish to attract?
• Do they respond in line with your specific campaign objectives?

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 Targets - Cost

• There are various ways to measure the cost of traffic:

• Cost of every visit - cpc

• Cost per Lead – CPA lead
• Cost per Conversion – CPA (Sale)
• Cost per New User – CPA (User)

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 Targets - Techniques

• Techniques refers to the use of various digital channels to drive traffic

Source: eMarketing eXcellence, Third Edition by Dave Chaffey and PR Smith

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 Timing

• Specific – time bound campaigns used to support:

• Promotions
• New product launches
• Site relaunches

• Always on – continuous traffic building activities

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 Types of Advertising Models

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 Types of Advertising Models

• PPC – Pay Per Click

• As the name suggests, this is a form of advertising where advertisers only pay
the publishers when a user clicks on the ad on the publisher web site.

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 Types of Advertising Models

• PPC – Pay Per Click

• As the name suggests, this is a form of advertising where advertisers only pay
the publishers when a user clicks on the ad on the publisher web site.

• CPM stands for Cost per Mille, or Cost per Thousand Impressions
• Here, advertisers pay based on the number of times their ad has been shown on
a publisher’s website.
• For example, if CPM is $2, it means that for every thousand times an ad is
shown, the advertiser will pay $2.

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 Types of Advertising Models

• PPC – Pay Per Click

• As the name suggests, this is a form of advertising where advertisers only pay
the publishers when a user clicks on the ad on the publisher web site.

• CPM stands for Cost per Mille, or Cost per Thousand Impressions
• Here, advertisers pay based on the number of times their ad has been shown on
a publisher’s website.
• For example, if CPM is $2, it means that for every thousand times an ad is
shown, the advertiser will pay $2.

• CPA / CPL – Cost per Action / Cost per Lead

• Here, the advertisers pay the publisher only when a user has come from the
publisher site and taken some action on the advertiser’s site. This could be buying
something, filling up a form, downloading a file, etc.

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 Types of Advertising Models

• PPC – Pay Per Click

• As the name suggests, this is a form of advertising where advertisers only pay
the publishers when a user clicks on the ad on the publisher web site.

• CPM stands for Cost per Mille, or Cost per Thousand Impressions
• Here, advertisers pay based on the number of times their ad has been shown on
a publisher’s website.
• For example, if CPM is $2, it means that for every thousand times an ad is
shown, the advertiser will pay $2.

• CPA / CPL – Cost per Action / Cost per Lead

• Here, the advertisers pay the publisher only when a user has come from the
publisher site and taken some action on the advertiser’s site. This could be buying
something, filling up a form, downloading a file, etc.

• CPV – Cost per View

• Here, the advertisers pay when a user views their video ad.

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 Evolution of Digital Advertising

Source - https://www.mediaocean.com/sites/mediaocean.com/files/pictures/Digital-Marketing-History-Graphic_FINAL.png

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 Search Engine Marketing

• As the name suggests, this refers to the method of generating traffic

through Search Engines.

• This is arguably the most important channel for customer acquisition.

• It is not unusual for companies to generate 50% or more of their sales from
Search Marketing alone.

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 Search Engine Marketing – 2 key tactics

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 Search Engine Marketing – 2 key tactics

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 Search Engine Marketing – 2 key tactics

Paid
• PPC
• Paid Search

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 Search Engine Marketing – 2 key tactics

Paid
• PPC
• Paid Search

Organic
• SEO
• Natural Search

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 Search Engine Market Share - Globally

• Google – close to 90% market share

globally

• Bing - ~24% market share in the US

• Oath (formerly Yahoo) – 11% market

share in the US

• Yahoo Japan – 35% share in Japan

• Baidu – over 70% share in China

• Yandex - ~55% share in Russia

Source: https://www.statista.com/statistics/216573/worldwide-market-share-of-search-engines/

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 Search Engine Market Share - India

• Google – dominant player

with ~95% market share

• Bing - ~3%

Source: http://gs.statcounter.com/search-engine-market-share/all/india

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 Introduction to Paid Search

• Adwords / Google Ads is an advertising service provided by Google where

advertisers pay to have their ads shows on the Google network.

Advertisers

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 Adwords and Google Ads

• As of July 24, 2018, Google renamed Adwords to Google Ads

• While historically, adwords referred primarily to the ads displayed on

Google Search, Google Ads makes it easier for advertisers to reach users
across Search, Display, Youtube, Mobiles, etc.

• For the purpose of this course, we will use Adwords to refer to the ads
shown on Google Search.

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 Why is Google Ads important?

• Maximum reach
• Be seen across the web (Search, Display, Video, In App)

• Ability to reach users with high intent

• Reach users at the time they are searching for the things you offer

• Sophisticated technology
• Platform is continuously being developed and new features get
launched frequently

• Ease of use

• Measurement
• Real time measurement with multiple metrics

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 Reach of Google Ads

• It is estimated that there are 2 trillion searches on Google every year

• 5.5 billion searches every day! 1

• The Google Display network includes more than 2 million websites, vidoes
and apps where ads can appear
• Reaches over 90% of users worldwide! 2

• 27.4% of all time spent on digital media is spent on Google properties! 3

Sources:
1 - https://searchengineland.com/google-now-handles-2-999-trillion-searches-per-year-250247
2 - https://support.google.com/google-ads/answer/117120?hl=en
3 - http://fortune.com/2018/04/11/google-youtube-facebook-nielsen/

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 Media Spends on Google

• It is forecasted that digital media will take 44 percent, or $237 billion, of all
ad money spent globally in 2018, with that figure reaching 50 percent, or
$291 billion, by 2020.
• Marketers are expected to spend $113 billion worldwide next year on
Search Marketing, a 12 percent increase on 2017. 1

• Google’s share of global media ad spending was estimated at 18% in 2017 2

• 27.4% of all time spent on digital media is spent on Google properties! 3

Sources:
1 - https://www.cnbc.com/2017/12/04/global-advertising-spend-2020-online-and-offline-ad-spend-to-be-equal.html
2 - https://www.marketingcharts.com/advertising-trends/spending-and-spenders-81522
3 - http://fortune.com/2018/04/11/google-youtube-facebook-nielsen/

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 Components of Search Ad

• Search Query
• Keyword
• Ad
• Headline
• URL
• Body
• Tracking parameters
• Landing Page

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 Characteristics of Search Ad

• Data Driven
• Huge amounts of data is available through the Adwords platform
• This can be used to generate useful insights and make changes to the campaigns

• Real time
• Typically, changes made to the ads reflect on Google almost in real time
• This gives the marketer ability to make quick changes

• Ability to test & learn

• Adwords platform makes it easy to test ads
• Advertisers can run experiments with different ad copies, etc to learn what
works best with users

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 Introduction to SEO

Search engine optimization (SEO) is the process of increasing the quality and
quantity of website traffic by increasing the visibility of a website or a web
page to users of a web search engine.

SEO refers to the improvement of unpaid results (known as "natural" or

"organic" results), and excludes direct traffic/visitors and the purchase of
paid placement. Primarily SEO pertains to search engine.

https://en.wikipedia.org/wiki/Search_engine_optimization

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 Why is SEO important?

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 Why is SEO important?

• ‘Free’ traffic

• Building trust

• SEO practices can help in providing a better experience for your

users

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 Key Metrics

• Impression
• The number of times your ad has been displayed

• Click
• The number of times your ad has been clicked

• Cost
• The amount you have spent

• Conversion
• The number of times users have taken the action you wanted them to

• Average Position
• The average position in which your ad has been displayed

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 Derived Metrics

• CTR – Click Through Rate

• Clicks / Impressions

• CPC – Cost per Click

• Cost / clicks

• CPM – Cost per Mille / Cost per Thousand Impressions

• Cost / (Impressions / 1000)

• CPA – Cost per Action

• Cost / Conversion

• Conversion Rate
• Conversions / Clicks

• ROI – Return on Investment

• (Revenue – Cost)/Cost

• ROAS – Return on Ad Spend

• Revenue / Cost
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 Other Metrics

• Quality Score
• A score provided by Google that is a measure of how good your ad is

• Impression Share
• Percentage of impressions that your ad receive compared to the total number of
impressions your ad could get

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 Metrics Exercise

Impressions and Clicks for 5 keywords are given below:

Keyword Impressions Clicks

K1 10,000 500
K2 12,000 480
K3 20,000 960
K4 8,000 320
K5 15,000 400

1. Which keyword has the highest Click Through Rate?

2. Which has the lowest?
3. Which two keywords have the same CTRs?

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 Metrics Exercise

Impressions, Clicks and Costs for 5 keywords are given below:

Keyword Impressions Clicks Cost

K1 10,000 500 10,000
K2 12,000 480 12,000
K3 20,000 960 22,000
K4 8,000 320 7,500
K5 15,000 400 12,500

1. Which keyword has the highest cpc?

2. Which has the lowest cpc?
3. What is the average Cost per Click for these 5 keywords?

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 LET US SUM UP

• Digital Advertising has seen rapid growth since its early days in the 1990s and
continues to evolve quickly
• Search Marketing is one of the most important components of Online Marketing
• Search Marketing has two components – Paid and Organic (SEO)
• PPC or Pay Per Click is one of the most successful advertising models on the
Internet
• Adwords (now called Google Ads) is a means of advertising across Google Search,
Display, Youtube.
• The key components of a Search Ad are Search Term, Keyword, Headline, Body,
URL, Landing Page and tracking parameters
• The key metrics include Impressions, Clicks, Cost and Conversions.

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