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Internet Marketing Trends 2007
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Transcript of Internet Marketing Trends 2007
The Latest Trends inInternet Marketing 2007
Panelist Introductions
• Andy King, founder, Website Optimization& author “Speed Up Your Site”
• Daniel O'Neil, Alchemist & Lead Analyst,Pure Visibility
• Abbey Beardslee, Sale Planner,MySpace.com/FOX Interactive
Search Engine MarketingTrends - The Shift to SEO
Andy Kingwebsiteoptimization.com
SEM to nearly double by 2011
Why more SEM?
• Advertising budgets shifting to Net• PPC prices rising (Google auto-pilot)• More measurable metrics• TV, radio, newspapers, yellow pages down• More companies entering the market
Shift from offline to online marketing
Shift from Traditional to New Media
Shift from PPC to SEO
• PPC/SEO from 2.4 to 1.1 from 2007 to 2012• PPC costs rising
– ~6 times $1+ keywords in Jan. 2007 vs. Jan.2006
– Ave CPK rose 33% each month in Q1 2006– Ave CPC rose 55%/month Jan. 2006 to Jan. 2007
DoubleClick, “DoubleClick Performics 50 – Search Trend Report Q1 2007,”(New York: DoubleClick Inc., June 2007), 1, http://www.doubleclick.com/insight/research(Nov. 17, 2007).
PPC Costs Rising Over Time
“DoubleClick Performics, “Q1 2007 Search Trends Report,” (DoubleClick, 2007), 2.http://www.doubleclick.com/insight/pdfs/DoubleclickPerformics50_Q1_2007.pdf.
How to boost ROI?
• Make ad spend more efficient• Optimize PPC campaigns• Long term SEO equal to PPC (trend)• Optimize everything with web metrics• Optimize conversion rates
– Web site optimizer (Google)– A/B/C split testing– Test, try, and retest
Search ROI vs. Other Tactics
Measuring Metrics
• 43% of marketers don’t/can’t accuratelymeasure ROI from SEO (Jupitermedia, 2007)
• Only 6-15% of companies are fullyintegrated (eMarketer, 2007)
• Basic metrics most used (traffic,impressions)
Web Metrics Integration
Measuring SEM Firms
• Amount of Web Traffic (58%)• Total sales (50%)• ROI from search marketing (49%)• Search engine ranking (48%)• Number of clicks (43%)• Return on advertising spend (42%)
Jupiter Research SEM Executive Survey, 2/07
Measuring Meta Tag Usage
Meta tag trends
• Keywords (34.2%) description (31.8%)used most
• Title, metadata Title, Subject, and Descriptionfields most important for SEO rankings
• 7.4% use Dublin core, less effective for SEO• Only 1.7% use metadata Title, yet impacts SEO
Zhang, J., and I. Jastram, “A study of the metadata creation behavior of different user groups on the Internet,” InformationProcessing and Management 42 (2006): 1099–1122.
Zhang, J., and A. Dimitroff, “The impact of webpage content characteristics on the webpage visibility in search engine results(Part I),” Information Processing & Management 41 (2005): 665–690.
Zhang, J., and A. Dimitroff, “The impact of metadata implementation on the webpage visibility in search engine results(Part II),” Information Processing & Management 41 (2005): 691–715.
Search Query Trends
Bogatin, D., “Yahoo: ‘Searches more sophisticated and specific,’” (San Francisco: CNET Networks, Inc., May 18, 2006).http://blogs.zdnet.com/micro-markets/index.php?p=27 (July 17, 2007).Pasca, M., “Organizing and Searching the World Wide Web of Facts - Step Two: Harnessing the Wisdom of the Crowds,” WWW 2007,(Banff, Alberta, Canada, May 8–12, 2007): 101-110. Google statistics.Oneupweb, “How Keyword Length Affects Conversion Rates,” (Oneupweb, 2005). (accessed June 15, 2007).
How to boost SEO rankings?
• Fully optimize Title tags (up to 3 keywords)• Build backlinks baby• Build PageRank (see #2)• Use Web 2.0/Social Media• Fresh keyword-optimized content• Stay out of Google “sandbox”• Longer to reach top rankings 6 -> 12 months
Spread of news in Blogistan
Cohen, E., and B. Krishnamurthy, “A short walk in theBlogistan,” Computer Networks 50 (2006): 615–630.
• Takes about 1 week for the averagestory to peak in links in the “blogistan”
• Staged release may be more effective• Blogs and RSS feeds are powerful for
backlinks• Press releases guarantee links
SEM Resources
• MarketingSherpa.com - research firm• SEMPO.org - SEM industry professionals• eMetrics.org - marketing conferences• FutureNowInc.com -conversion rate optimization• SEOMoz.org - ranking factors survey• SearchEngineLand.com - Danny Sullivan• WebsiteOptimization.com/presentations
Metrics for the Masses - How improved metrics will redefine
what we sell and how we sell it!
Daniel O’Neil Pure Visibility Inc.
Metrics and Marketing havebeen uneasy bedfellows
“The time has come when advertising in somehands has reached the status of science.”
-- Claude Hopkins, 1923
“I know half of my advertising is wasted; I justdon’t know which half.”
-- John Wannamaker, ca 1910
85 years later...
Market Measurement has grownexplosively thanks to Google Analytics
• A free tool that allows detailed traffic profilesat a level of quality second only to high-costproducts like Omniture’s SiteCatalyst orWebTrends
• Business-oriented data, not geek-oriented data• Can be used to to make non-intrusive inquiries
into your clients and visitors’ needs.
The short-term trend: analyticswill be as common as Outlook
• Terms that are becoming more and more common:– ROI– Cost per Lead– Cost per Conversion– Sales Funnel considerations– “Stickiness”
• Web marketers that don’t promise metrics -- andthe ability to explain metrics -- will not do as wellas those who do.
The long-term trend: Analytics will be usedto create sustained, detailed user profiles
Company
Product Line Books, some Media(Deep)
DVD Media, some MovieDownloads (Deep)
Consumer Goods(Broad, Deep)
Business Model Brick and MortarCommodity Purchase
Online SubscriptionService
Online CommodityPurchase
Knowledge of CustomerPreference
Low High High
Degree of CustomerFeedback
Low High Medium
Number of Customeractions captured
Very Low High Medium - High
Length of Transactionalhistory
0-1 ongoing, changes dailyand weekly
per login/purchase orbrowse
How will the business model change?
• Increase in measurable “Micropurchase” business models
– Subscriptions and Serials
– Tracked sampling offerings and price-reduced to get data
– Attribute bundling (enrich what a product is by addingreviews, friend recommendation, etc.)
• Increasingly commodities become monetized throughservices. The Amazon and Netflix web properties are servicesthat contribute to the sale of commodities.
- Amazon’s customer retention in 2002 was 60%;in 2004 it was 78%.
These ideas are not new, butthey have been slow to grow.
• Netflix’ model has been mature since about 2003;Amazon’s model continues to evolve, but reachedNetflix’ standard around 2005-2006. Then theysurpassed it!
• Traditional merchandising companies have been slowto catch up because in order to make it work, ameasurable, superior SERVICE has to be the core goalof any website.
• It doesn’t have to be “High Tech”, but the vision hasto be clearly defined and supported by theorganization-The Ann Arbor District Library gets it, but Target doesn’t!
Resources and links
http://www.purevisibility.comhttp://recsys.acm.org/program.html
http://analytics.google.comhttp://www.aadl.org
Competing on Analytics: The New Science of Winning.Davenport, Thomas H.; Harris, Jeanne G.
Branding and Positioning –Be Something No One Else Is
Abbey Beardslee, Sale Planner,MySpace.com/FOX Interactive
OUR CORE VALUEPROPOSITION:
MySpace is the mosteffective platform toreach the youth market,offering unparalleledreach and compositionamong trend-settingyoung adults.
What Is MySpace?
How We’ve Grown…
In just 3 years, MySpace hasachieved portal-sized reach…
– 71 MILLION MONTHLY USERS¹
We’ve become the premierdestination for young adults…
– 26 MILLION 18-34 YEAR OLDS
We’ve developed the highestcomposition of 18-34 year oldsof all broad reach sites…
– 37% COMPOSITION
We provide both scale and coverageof the trend-setting young adultaudience
Source: ¹comScore Media Metrix, June 2007, US
SOCIAL NETWORKINGSTARTS HERE…• 68.4 million monthly users• 82% of members are 18+• 38% reach of the US online population• 45.2 billion page views per month• 14.2 billion total minutes per month• Average of 207.3 minutes per user per month• 58% of Social Networking market share• 24.8 average visits per visitor• 43% reach against all adults 18-34• 37% reach against HH Income 75k+
* Duplication between Social Networking sites not shownSource: comScore Media Metrix, US data – August 2007
MySpace is Home for Social Networking Users
68,392,000
62% of the Facebookaudience visits MySpace 60% of the YouTube
audience visits MySpace
58% of the LinkedInaudience visits MySpace
The Most Efficient Way ToReach 18-34 Year Olds Online
REACH, COMPOSITION AND CONSUMPTION AMONG 18-34 YEAR OLDS
LOW REACH, HIGH COMPLOW REACH, LOW COMP
REACHUnique Visitors (000)
COMPOSITIONPercent
HIGH-REACH, LOW COMP HIGH-REACH, HIGH COMP
Size of bubbleindicates pageviews (MM)
..
..
The Momentum Effect In Action:Smart Media + Brand Community = Momentum
MySpace Campaign: EA Burnout Band Slam 2 Results: Momentum-Driven ROI*
• EA launched an international band competition topromote a video game release
• Winning band’s music is featured in Burn Out Gameplus a Virgin Record Label
• The brand community encouraged viral pass-alongby allowing users to forward content to friends
• Standard media was also utilized to drive contestawareness and traffic to community
MYSPACE MEDIA AND MOMENTUM DRIVES6-15X THE IMPACT OF OTHER ONLINE MEDIA
Source: 1NEF study, April 2007, commissioned by MySpace, Isobar and Carat
Momentum EffectAdvertising Effect
6X
"Definitely Will Purchase"
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Online Advertising MySpace Advertising
ROI:Extraordinary
15X
plus Momentum EffectPe
ople
Impa
cted
Per
$10
0,00
0 Sp
ent
*** Close to 7,000 contest submissions!!
MYSPACE MEDIA BENEFITS:
• High-reach—The most efficient wayto reach 18-34 year olds online
• Highly effective—MySpace mediadrives brand awareness
• High value—Cost-effective relativeto all broad-reach competitors
• Highly targeted—Segment usersbased on freely expressed passions
HIGH REACH
HIGHLY TARGETED
HYPERTARGETING
ENTHUSIASTTARGETING
PREMIUM CONTENT
USER HOMEPAGE
MYSPACE HOME PAGE
MySpace Media Is Smart And Effective
VIDEO - Competitive Landscape
Poised for explosive growth, MySpaceTV will be a market-leading videodestination.This Chart compares “total unique video viewers”
30.1
4.6%
26.6
11.0
386,724
35,024
Yahoo!
17.3
7.6%
36.4
13.2
635,036
47,985
MySpace
17.815.468.0Minutes per Viewer
2.0%2.2%20.5%Share of Videos
18.522.347.2Viewer Penetration
7.06.327.6Videos per Viewer
171,155184,7221,715,068Videos (000)
24,39429,47962,206Total Unique Viewers (000)
MSNAOLYouTube
Next Month: 12.11.07
Smart Spending - How to Measure the Return onYour Marketing Investment
Moderator: Debra Power, Power MarketingPanelists:• Archie Sader, Integrated Marketing
Communications, EMU• Jon Boyd, The Home Buyer's Agent of Ann
Arbor• David Bloom, Optimization Group