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SEARCH MARKETING

SEARCH MARKETING. PAID SEARCH. PAID SEARCH - RHS. PAID SEARCH - FEATURED. IN THE 1990s, STANFORD STUDENTS SERGEY BRIN AND LARRY PAGE DEVELOPED A SEARCH ALGORITHM. Source: Hal Varian’s Berkeley Lecture on Search Economics. THEY TRIED TO SELL THEIR SEARCH ALGORITHM TO YAHOO FOR $ 1 MILLION.

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SEARCH MARKETING

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  1. SEARCH MARKETING

  2. PAID SEARCH

  3. PAID SEARCH - RHS

  4. PAID SEARCH - FEATURED

  5. IN THE 1990s, STANFORD STUDENTS SERGEY BRIN AND LARRY PAGE DEVELOPED A SEARCH ALGORITHM

  6. Source: Hal Varian’s Berkeley Lecture on Search Economics THEY TRIED TO SELL THEIR SEARCH ALGORITHM TO YAHOO FOR $ 1 MILLION

  7. THEY FOUNDED GOOGLE IN 1998 AND WENT PUBLIC IN 2004

  8. AROUND TEN YEARS AGO THERE WERE MANY SEARCH ENGINES

  9. comScore April 2008 Search Engine Rankings TODAY, THERE ARE EFFECITVELY 5 PRIMARY SEARCH PROVIDERS

  10. AND 3 PAID SEARCH PROVIDERS Based on June 2008 Covaris numbers reported at mediapost (msn is inferred)

  11. $0.25 x 10000 clicks = $2500 $1.00 x 2500 clicks = $2500 $10.00 x 250 clicks = $2500 PAY PER CLICK MODEL

  12. GOOGLE’S ORGANIC SEARCH GOAL IS USER SATISFACTION

  13. GOOGLE’S PAID SEARCH GOAL IS USER SATISFACTION ADVERTISER SATISFACTION MAXIMUM PROFITABILITY

  14. $0.25 x 10000 clicks = $2500 $1.00 x 2500 clicks = $2500 $10.00 x 250 clicks = $2500 PAY PER CLICK MODEL

  15. WHY AD POSITION MATTERS – EYE TRACKING Source: Jan Pederson’s Search Quality Presentation at Berkeley (2007)

  16. ashtonsd90.com bids $1.38 ritzcamera.com bids $1.17 shopcartusa.com bids $3.23 PPC - BIDDING

  17. ashtonsd90.com bids $1.38

  18. ritzcamera.com bids $1.17

  19. shopcartusa.com bids $3.23

  20. HOW RELEVANT IS THE LANDING PAGE AND AD?

  21. ashtonsd90.com bids $1.38 ritzcamera.com bids $1.17 shopcartusa.com bids $3.23 RANK THEM

  22. ashtonsd90.com bids $1.38 , ranks 2ndandpays $1.38 ritzcamera.com bids $1.17, ranks 3rdandpays $1.17 shopcartusa.com bids $3.23, ranks 1standpays $3.23 NORMAL AUCTION

  23. ashtonsd90.com bids $1.38 , ranks 2ndandpays $1.17 ritzcamera.com bids $1.17, ranks 3rdandpays ??? shopcartusa.com bids $3.23, ranks 1standpays $1.38 VICKREY AUCTION (VCG)

  24. Google’s customers are ranked based on a quality score * their bid and pay slightly more than the next ranked bidder not exceeding their maximum bid. PRICE AND RANKING ARE RECALCULATED EACH QUERY GOOGLE AND YAHOO USE A GENERALIZED SECOND PRICE (GSP) AUCTION

  25. ashtonsd90.com 1.38 x 4 = 5.52 ritzcamera.com 1.17 x 6 = 7.02 shopcartusa.com 3.23 x 1 = 3.23 AD RANK = BID x QUALITY SCORE (QS)

  26. ashtonsd90.com 1.38 x 4 = 5.52 pays 3.23/4 = .82 ritzcamera.com 1.17 x 6 = 7.02 pays 5.52/6 = .93 shopcartusa.com 3.23 x 1 = 3.23 pays minimum .05 HYPOTHESIZED PRICE = NextPlace(AR) / QS +.01

  27. HYPOTHESIZED PRICE = NextPlace(AR) / QS +.01 HOW MUCH WOULD NIKON HAVE TO PAY FOR NUMBER 1?

  28. GOOGLE SYNDICATES ITS ADS TO PARTNER SITES

  29. GOOGLE SYNDICATES ITS ADS VIA ADSENSE

  30. As compiled on mindofmichael.com A FEW ADSENSE SITES GENERATE GOOD REVENUE

  31. ADSENSE PARTICIPANTS AGREE NOT TO DO BAD THINGS

  32. ADSENSE PARTICIPANTS AGREE NOT TO DO BAD THINGS

  33. ADSENSE PARTICIPANTS AGREE NOT TO DO BAD THINGS

  34. ADSENSE PARTICIPANTS AGREE NOT TO DO BAD THINGS

  35. CLICKFRAUD

  36. PAID SEARCH IS SANDBOXED FROM ORGANIC

  37. WHEN I CLICK HERE, I DON’T CLICK HERE

  38. Slide 37: 'Happy Kids NEED A Healthy Sandbox‘ www.flickr.com/photos/44124458380@N01/567277264 PHOTO ATTRIBUTIONS

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