Paid Search Immersion - Buying Keywords from Yahoo and Google

1. Paid Search Immersion - Buying Keywords from Yahoo and Google Ben Kirshner, CEO, Elite SEM Inc GLG Institute Tuesday, February 20, 2007 Penn Club, New York

2. Benjamin Kirshner is the Founder and Chief Executive Officer of Elite SEM Inc, an online advertising agency. He is also an instructor of search engine marketing strategies at NYU. He specializes in developing and orchestrating search engine marketing campaigns, email marketing, affiliate marketing, banner advertising, co-registration, contextual targeting advertisements, and ROI tracking. He is experienced in evaluating search engine marketing technologies. He has over 7 years of experience in online marketing space. Previously, he has held management positions at Google, Yahoo, AskJeeves, MSN, AOL, Shopping.com, and Valueclick. He is also a Yahoo Ambassador.

3. Table of Contents • Project Panama: What is the impact? • Search: How are campaigns started and how do they charge? • Bid Management Tools • Google and Yahoo: What do advertisers face when advertising?

4. Outsourcing Searches a month. How much potential business are you missing out on?http://inventory.overture.com Some other Keyword tools: Google Keyword Suggestion tool

5. The pie chart below shows the percentage of searches done by US web surfers in July 2006 that were performed at a particular web site or a network of web sites: Share Of Searches Source: Searchenginewatch.com

6. Who Powers Who? Source Bruceclay.com

7. SEM and the Buying CycleSource: Kevin Lee CEO Did-it.com Campaign Goals and Objectives should line up with the profile of the searcher. Source: Kevin Lee Did-It.com

8. Overture

9. Search for Outsourcing

10. Overture Rank Results Ranking • OLD SYSTEM • 100% Cost Per Click bidding auction • Standard Match • Standard Match is the core source of traffic for all Overture advertisers. You receive traffic with Standard Match from: • Exact matches to your keywords • Singular/plural variations of your keywords • Common misspellings of your keywords • Advanced Match • Advanced Match requires that the words in your keyword appear in the user's query in any order and will display your listing

11. NEW Yahoo Panama • Click Thru Rate • Multiple Ads • Local AdvertisingNew AdvertisersIncrease CPC’s on current auctions • Ad Activation • Keyword Insertion Example of How Ads may be RankedThe graphic below helps illustrate a scenario that may result from this change: Five Things to do to Take Advantage of the New Ranking ModelTo take advantage of the new ranking model, you should: Include keywords in your ads (use our Insert Keyword feature). Choose keywords for each ad group carefully. Use ad testing. Use Excluded Words to optimize your Advanced match type ads. review your current bids and set a campaign budget to meet your business goals.

12. Main Overture Partners: Yahoo

13. Main Overture Partners: Alta Vista

14. How Does Google Adwords Rank Results? .65/1.8%=$.36 .38/1.0%=$.38 + Quality Score

15. Why CTR is so important in PPC Monetization 1.8% CTR=18 Clicks $.37 X 18 Clicks= $6.66 CPM $.39 X 10 Clicks= $3.90 CPM Old Yahoo: Advertiser B would be number 1 $.41 X 10 Clicks= $4.10 CPM$.26 x 18 Clicks= $4.68 CPM

16. Search for Insurance: Google

17. Main Google Adwords Partners

18. Main Google Adwords Partners

19. Main Google Adwords Partners

20. MSN Results (ranked similar to Google)

21. Search Engine Optimization • SEO is an abbreviation for "search engine optimizer." Many SEOs provide useful services for website owners, from writing copy to giving advice on site architecture and helping to find relevant directories to which a site can be submitted. However, there are a few unethical SEOs who have given the industry a black eye through their overly aggressive marketing efforts and their attempts to unfairly manipulate search engine results. • Google's order of results is automatically determined by more than 100 factors, including our PageRank algorithm. Due to the nature of our business and our interest in protecting the integrity of our search results, this is the only information we make available to the public about our ranking system.

22. Search Engine Optimization • PageRank Technology • PageRank performs an objective measurement of the importance of web pages by solving an equation of more than 500 million variables and 2 billion terms. • Instead of counting direct links, PageRank interprets a link from Page A to Page B as a vote for Page B by Page A. PageRank then assesses a page's importance by the number of votes it receives. • PageRank also considers the importance of each page that casts a vote, as votes from some pages are considered to have greater value, thus giving the linked page greater value. Important pages receive a higher PageRank and appear at the top of the search results. Google's technology uses the collective intelligence of the web to determine a page's importance. • There is no human involvement or manipulation of results, which is why users have come to trust Google as a source of objective information untainted by paid placement.

23. SEO Terms • Cloaking • Cloaking describes the technique of serving a different page to a search engine spider than what a human visitor sees. This technique is abused by spammers for keyword stuffing. Cloaking is a violation of the Terms Of Service of most search engines and could be grounds for banning. • Doorway Page • Also called a gateway page. A doorway page exists solely for the purpose of driving traffic to another page. They are usually designed and optimized to target one specific keyphrase. Doorway pages rarely are written for human visitors. They are written for search engines to achieve high rankings and hopefully drive traffic to the main site. Using doorway pages is a violation of the Terms Of Service of most search engines and could be grounds for banning. • Keyword Stuffing • Keyword stuffing refers to the practice of adding superfluous keywords to a web page. The words are added for the 'benefit' of search engines and not human visitors. The words may or may not be visible to human visitors. While not necessarily a violation of search engine Terms of Service, at least when the words are visible to humans, it detracts from the impact of a page (it looks like spam). It is also possible that search engines may discount the importance of large blocks of text that do not conform to grammatical structures (ie. lists of disconnected keywords). There is no valid reason for engaging in this practice. • Link Farm • A link farm is a group of separate, highly interlinked websites for the purposes of inflating link popularity (or PR). Engaging in a link farm is a violation of the Terms Of Service of most search engines and could be grounds for banning. • Definition • The act of presenting one set of content to search engine spiders and another set of content to human web users. This is accomplished by presenting different sets of content based on the IP address of a visitor. IP Delivery is a form of cloaking that is used to present content that has been specifically optimized to rank well at each search engine while still presenting the same content to each human visitor to the web site. This technology is difficult to detect, as it requires that a user present the IP address of a search engine spider in order to view the hidden web site content. (see also: agent name delivery, cloaking.)

24. ROI Tracking Tools

25. ROI Tracking Tools

26. ROI Tracking Tools

27. 3rd Party Bid tools

28. Many GGL Management toolsClick Thru Rate (CTR) Example Keyword Magazine Subscription Headline Mag Title Magazines.com {KeyWord:Mag title} {KeyWord:Magazines.com} Creative 1 Creative 2 Creative 3 Creative 4 CTR % 2% 3% 4% 2.5% Magazine SubscriptionBID=$1.00

29. Advanced GGL Management Took Conversion Rate Example Keyword Magazine Subscription Headline Mag Title Magazines.com {KeyWord:Mag title} {KeyWord:Magazines.com} Creative 1 Creative 2 Creative 3 Creative 4 CTR % 2% 3% 4% 2.5% Broad Magazine Subscription BID=$1.00 Magazine Subscription BID=$4.50 Magazine Subscription BID=$2.00 Magazine Subscription BID=$1.00 “Magazine Subscription”BID=$3.00 “Magazine Subscription” BID=$2.00 “Magazine Subscription”BID=$5.00 “Magazine Subscription”BID=$1.00 Phrase [Magazine Subscription] BID=$3.00 [Magazine Subscription]BID=$1.50 [Magazine Subscription]BID=$5.00 [Magazine Subscription] BID=$2.00 Exact Google SearchOnly Magazine Subscription BID ContentNetwork Magazine Subscription BID Geo+Time of Day Magazine Subscription BID +38 More

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