Search Engine Marketing

Salford Business Showcase | 8th October 2009

Dr Aleksej HeinzeSearch Engine Marketing Management lecturerSalford Business SchoolA.Heinze@salford.ac.uk 0161 295 5024

www.business.salford.ac.uk1

Simon Wharton Managing Director PushON Ltdsimon@pushon.co.uk 0844 967 0565

www.pushon.co.uk

• Established in 2005

• Team of 7 industry-proven professionals with over 39 years

of technical and marketing experience in Online Marketing

• Council member for Manchester Digital (Trade body for

North West ICT and new media sectors)

• Approved consultant to the MDDA for Online Marketing

• Member of the Chartered Institute of Marketing (CIM)

• Google Adwords professionally qualified

• Demonstrable track record of success

• Holder of Professional Indemnity Insurance

Salford Business School

• Established in 2006• Open Programmes:

– Search Engine Marketing Management– www.business.salford.ac.uk/academicenterprise/search-engine-mark

eting.php

– LEAD Programme www.business.salford.ac.uk/LEAD/– Institute of Directors (IoD)www.business.salford.ac.uk/iod/– Management and Leadership Toolkitwww.business.salford.ac.uk/academicenterprise/mlt/

• Knowledge Transfer Partnerships– www.ktp.salford.ac.uk

• Salford MBA www.business.salford.ac.uk/MBA/

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Key points• Why SEMM/SEO? • Impact on your marketing mix

• Measurable online presence is important• How to measure where your

website is now?• Cowboys

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Fun time

Volunteer to look at your web-site

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Why Search Engine Marketing Management (SEMM)/Search Engine Optimization (SEO)?

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UK Households: 65% had internet access in 2008(National Statistics, 2008)

National Statistics (2008) Internet Access - 65% of households had access in 2008, accessed from http://www.statistics.gov.uk/CCI/nugget.asp?ID=8&Pos=1&ColRank=1&Rank=192PricewaterhouseCoopers. (2008). Ninth Information Security Breaches Survey: Department for Business, Enterprise & Regulatory Reform (BERR), accessed from www.security-survey.gov.uk

UK Businesses: 97% have a broadband internet connection 93% have a corporate website. (PricewaterhouseCoopers, 2008)

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Online advertising 'overtakes TV'

• Online spending increased to £1.752bn

• TV spending shrank to £1.639bn.

• First half of 2009 • BBC 30th September 2009 available from

http://news.bbc.co.uk/1/hi/business/8280557.stm

What is the future? The PayPal UK Online Retail Report forecasts

that from 2008 to 2011:• UK online retail spend is forecast to more than

double: from £9.1 billion to £21.3 billion by the end of 2011

• Shoppers are expected to spend at least one in every 14 pounds online by 2012

• Source: PayPal’s UK Online Retail Report, conducted by Experian (2009) Accessed online: https://www.thepaypalblog.com/2009/06/paypal-uk-online-retail-report/

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More search only equates to more frustration for consumers• Levels of search volume are standing at an all-time high • But consumers are now having to search harder and more often to

find what they want• AdWords service changed in May 2008 by allowing non-trademark

owners to bid on trademarked terms in the UK and Ireland• Brand owners appear to be very poor at getting themselves to

the top of searches

Source: Internet Quarterly - UK - September 2008

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Difference SEO vs SEMM

SEO SEMM

Measure Website traffic Goal conversion

Feature Organic SEO and Pay-Per-Click SEO

Integrates SEO with offline marketing communications

Focus Search Engines Return on investment

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IMPACT ON YOUR MARKETING MIX

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Classic Marketing Mix (4Ps)

PRODUCT

AppearanceFeatures / Benefits

Quality / CostRange

New ProductsUSP

TechnologyBranding

Packaging

PRICE

Cost basedCompetitor based

Value based

Strategies:Skimming

PenetrationPsychologicalLoss leader

PLACE

Where do customers look and buy?

RetailWholesaleDistributionMail Order

DirectInternet

PROMOTION

Objective:Integrated Marketing

communicationsCorporate v Product

Sales PromotionAdvertising

PRPersonal SellingDirect marketing

Internet

PROMOTION

ADVERTISINGTV / Radio

Newspapers / MagazinesCinema

DirectoriesWord of mouth

Leaflets / Brochures

PR

PublicityEvents

PROMOTIONS

Special offersTrials

Free giftscompetitions

PERSONAL SELLING

CounterField

Telesales

EXHIBITIONSTRADE FAIRS

CORPORATE IDENTITYSPONSORSHIP

POINT OF SALEMERCHANDISING

DIRECT MARKETING

Telemarketing, database marketing, loyalty schemes, relationship marketing

INTERNET MARKETING

Advertising Focus but can be all elements

ProductProduct

CompanyCompany

MeasureRESPONSE

•Track and Measure

Set GOALS

•Understand your prospect•Attract highly qualified prospects•Build a relationship•Convert prospects to customers•Deliver customer value

ATTRACTprospects

•Online:•SEMM: SEO / Pay per Click•E-mail campaign•PR

•Offline:•PR•Traditional Advertising (leaflets, brochures, newspaper ads, banners, posters etc)

Develop RELATIONSHIP

•Search behaviour•Website usage•Capture E-mail address and contact details•Provide valuable content

Internet/online/ e-marketing

Model for decisions on advertising

• Widget AdWords Pay Per Click costs £500• Average margin for you = £500

• If we get 10 enquiries from this ad and 2 sales (20% conversion rate):

• Cost per enquiry = £500 / 10 = £50• Cost per sale = £500 / 2 = £250• “Net” Margin = £1,000 - £500 = £500• ROI = £500 / £500 x 100 = 100 %

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Customer Life Time Value

• Measure the value of a customer and estimate their lifetime value

Average Transaction ValueX

Number of transactions per yearX

Number of Years 17

Customer Life Time Value (CLTV) Example

It is now !!! Even one year is worth £1,000 for a £100 ad

• CLTV = £4 x 10 times pa x 5 years = £200• For the 25 customers that’s £5,000 for £100 ad spend

Not worth doing?

• Theatre Company AdWords in Pay Per Click £100• Average margin for you = £4

• If we get 50 enquiries from this ad and 25 sales (50% conversion rate):

• Cost per enquiry = £100 / 50 = £2• Cost per sale = £100 / 25 = £4• “Net” Margin = £4 - £4 = £0

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Activity 2: List your marketing activities and estimate/calculate their ROI and CLTV

Activity ROI CLTV Set Budget Set Goal

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How to measure your website’s performance?

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Search engines• Essentially are permanently switched on

calculators

• Bots or program scripts constantly visit web pages and evaluate them

• Bots “sort” pages that they come across

• Once a page has been visited it is – a) added to the index server – similar to the index

page of a book – b) a cash or a snapshot of the page is taken

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Keeping Consumers Connected - UK - September 2008 – Google ís The WinnerFigure 20: How often consumers use search engines, by frequency, July 2008

Yahoo! Google MSN Other

% % % %

Any users 83 99 66 48

Use the most 9 79 4 3

Use sometimes 45 17 33 20

Used more in the past, but not so much now 28 3 29 25

Have never used 17 1 34 52

Base: 2,000 internet users aged 16+

Source: GMI/Mintel 22

The Google analysis • Google uses over 200 variables to determine

position of any one web page• PageRank™ algorithm (based on link structure of the

web)• Hypertext-matching analysis are determining

which pages (not sites) are relevant to the specific search

• Individual web page position is calculated by combining – a) overall importance of the page (PageRank) and – b) query-specific relevance to the search (Hypertext-matching

analysis)

• Other search engines followed and developed similar algorithms

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Measure you website now?• Google Analytics - www.google.com/analytics/ • Seoquake - www.seoquake.com • SEOBook toolbar - http://tools.seobook.com/seo-toolbar/• and many others….

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Compare sites• SEO Book

toolbar

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Activity 3 – Using the SEObook toolbar, evaluate the web site Site name PRank Internal links External links Site age

•What does this analysis indicate to us?•What can we do to improve? 26

Workshop summary• SEO/ SEMM is increasingly important• Use SEO/ SEMM in combination with other • A number of tools to measure your website

performance• Be careful when selecting agencies • Management training courses:

http://www.business.salford.ac.uk/academicenterprise/search-engine-marketing.php

• Consultancy advice: http://www.pushon.co.uk/

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Simon Wharton Aleksej Heinze

Salford Business School

t: 0844 967 0565 01612955024

m: 07900 224 764 07759 160 243

e: simon@pushon.co.uk a.heinze@salford.ac.uk

Bibliography• Brin, S., & Page, L. (1998). The anatomy of a large-scale

hypertextual Web search engine. Computer Networks and ISDN Systems, 30(1-7), 107-117

• Jones, K. B. (2008). Search Engine Optimization. Indianapolis, IN, USA: Wiley Publishing.

• Walter, A. (2008). Building findable websites: Web Stanards, SEO and beyond. Berkeley, CA, USA: New Riderers.

• Harald Weinreich, Hartmut Obendorf, Eelco Herder, and Matthias Mayer: "Not Quite the Average: An Empirical Study of Web Use," in the ACM Transactions on the Web, vol. 2, no. 1 (February 2008).

• Forrester, B. (2009) Marketing Mix and Customer Life Time value matrix notes from the Search Engine Marketing Management course. Salford Business School, Salford, UK

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