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Meet the Search Ad Networks Doug Stotland Microsoft adCenter

Meet the Search Ad Networks Doug Stotland Microsoft adCenter. SES San Jose August 8, 2006. The 7 Minute Microsoft adCenter Abs Agenda. adCenter Update Rising CPCs and the BRG Results to Date Wrap Up. Microsoft adCenter Update. Since SES San Jose ‘ 05 10/8/05 France and Singapore Launch

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Meet the Search Ad Networks Doug Stotland Microsoft adCenter

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  1. Meet the Search Ad NetworksDoug StotlandMicrosoft adCenter SES San Jose August 8, 2006

  2. The 7 Minute Microsoft adCenter Abs Agenda • adCenter Update • Rising CPCs and the BRG • Results to Date • Wrap Up

  3. Microsoft adCenter Update Since SES San Jose ‘05 • 10/8/05 France and Singapore Launch • 10/18/05 US pilot begins • 10/26/05 White Sox win World Series • 5/4/06 US launch • 8/7/06 Firefox 5.1 support Up Next • (Summer ‘06) UK pilot • (Fall ‘06) Contend ads in adCenter

  4. Rising CPCs and the BRG • CPCs increase • Why is that? • Increasing demand from new advertisers and bigger budgets • Irrational behavior • Increasing ROI • The Big ROI Gap (BRG) gets Bigger ROI Knowledge Technology & Innovation ROI Market Changes ROI ROI

  5. The BRG – Market Changes • Adapt and adopt as the market changes • May 2006 • adCenter Launches • ~40 MM users, 2B+ searches/month • Access to high converting, high spending audience moves from Yahoo to adCenter Conversion Rate Market Changes ROI ROI Notes: *Compete defines Conversion as a session where the conversion funnel was completed (purchasing retail item, purchasing travel) MSN scored 3rd in Financial Services, the only other category studied

  6. The BRG – Technology and Innovation • Capitalize on innovations coming to market to: • Learn about your customers and target more precisely • Improve CTR which increases volume and lowers your CPCs • Increase post-click conversions Technology & Innovation ROI ROI

  7. The BRG – Knowledge and Skill • Build knowledge and work with ringers: • SEM agencies • Conferences, training, blogs, etc. • Good marketing beats less good marketing • Hiring ROI Knowledge ROI

  8. Who’s on the Business End of the BRG? • Adapt and adopt as the market changes • Capitalize on innovations coming to market • Build your capabilities ROI The BRG The Business End of the BRG ROI

  9. Why adCenterMeasurable Conversion + Powerful Audience Intelligence • Compete Inc. ranks MSN first in conversion rates in Retail, Consumer Electronics and Travel categories* Conversion Rate Audience Targeting Notes: *Compete defines Conversion as a session where the conversion funnel was completed (purchasing retail item, purchasing travel) MSN scored 3rd in Financial Services, the only other category studied

  10. Why adCenterWhat’s Working for our Clients “The ROAS comparison for June for our biggest client, expressed as revenue per ad dollar spent, is $2.85 for AdWords, $5.53 for Yahoo, and $8.13 for Microsoft adCenter. Needless to say, we’re going to increase our investment in Microsoft adCenter right away.” — David Szetela , President & CEO, Clix Marketing, www.clixmarketing.com “The efficiency gained from Microsoft adCenter allowed Move.com to be more aggressive with its acquisition strategy, resulting in more conversions across the entire campaign.” — Frank Lee, VP, Account Management & Partner Relations, The Search Agency “The campaign has been an overwhelming success. We have seen conversion rates up to two times as high as other major search engines, including Google, all at lower bid prices. At this point, we want to spend as much money with Microsoft adCenter as we can because it simply works as well or better than anything else out there. -- David Rodnitzky, Senior Director of Marketing Adteractive “MSN achieved an excellent rate of return on the amount we spent. Register.com looks forward to growing our paid search campaign with MSN as the engine expands.” -- Craig Cooperman, Director, Advertising & Partner Marketing at Register.com.

  11. Success Story: Home Décor Case Study • Campaign results on Microsoft adCenter earned significant ROI, exceeding acquisition cost goals and outperforming Yahoo! • The addition of Microsoft adCenter to the advertising mix, and its ability to deliver strong ROI has contributed to an increase in HDPI's overall search marketing spend • With Microsoft adCenter serving 100% of MSN Search traffic, HDPI anticipates gaining even more flexibility to reallocate its search budget to better performing search engines "Our goal is to maximize ROAS without cannibalizing revenue growth. The acquisition cost on Microsoft adCenter is so low that it allows us to increase our maximum CPA goals on other engines and still remain below our campaign cost threshold.“ - Christal Condon Director, Online Marketing "The net result is we are able to drive more volume and convert more visitors at a reduced cost. Microsoft adCenter has greatly enhanced our ROI." - Christal Condon Director, Online Marketing Source: Market Forecast, Retail, 2005-2009, JupiterResearch. 2005.

  12. Wrap Up • Getting started with adCenter: adCenter.microsoft.com • Learn more: • Booth at SES Expo • Varnished: advertising.msn.com/adcenter • Unvarnished: forums.searchenginewatch.com and www.webmasterworld.com • adCenter blog: blogs.msdn.com/adcenter • doug.stotland@microsoft.com

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