1 IN ASSOCIATION WITH
2 Search Marketing Fact Pack Advertising Age 3 SEARCH MARKETING DATA ON ENGINES, KEYWORDS, SITES AND STUDIES IT SOLVES A BASIC MARKETING need: connecting potential buyers to sellers. But until the recent past, search marketing has lived a low-profile life in the media and advertising world. Today, however, it s hard to ignore the stats: About 80% of internet traffic begins at a search engine, according to Harris Interactive, and DoubleClick reports 41% of web users use search for simple navigation, typing a query to find a brand rather than typing a URL directly into their browser. And how the business has grown: the latest figures from Forrester indicate search marketing will be a $7 billion business this year. While it may not be as flashy as TV, search is one of the best ways to extend the life of a 30-second spot. Ignoring it is a stumble few marketers can afford, which is why Advertising Age has compiled its first comprehensive Fact Pack devoted to search marketing. Sure, Ad Age has been covering search since its early days, you know, 1995 or so, when Google was still a glimmer in Larry and Sergey s eyes and the big news was that the Lycos search engine decided to put ads on its site. But this special supplement expands our promise of providing marketers with the best, most comprehensive data and ideas to help them do their jobs smarter and more efficiently. For example, on Page 38 we detail 12 search engine optimization strategies for 2007 you should know that adding tags, wikis and RSS to the content on your site can do wonders for your web site s search rankings. Or track the life of a search on Page 30 with a case study of the term HDTV. Or check out the cool eye-tracking study detailed on Page 40 to see what search marketers mean when they talk about the Golden Triangle. Additionally, Ad Age presents its first ranking ever of search advertising agencies. That ranking, based on estimated revenue generated by SEM/SEO operations, presents the top 20 agencies, which you ll find on Pages 48 and 49. Of course, if you re already lost with all this talk of SEM and SEO, you might want to skim the glossary on Page 45 first. We should point out that search marketing, as with all digital media and technologies, is a hot topic and thus covered by several different trade groups, research companies and publications. Some methodologies and totals may vary slightly but taken in full, this Fact Pack should provide a good picture of where search is now and where it s headed. Abbey Klaassen
3 4 Advertising Age Search Marketing Fact Pack CONTENTS Overview The interactive channels marketers are using, and plan to use 6 The engines Google, Yahoo, MSN, AOL and Ask lead the way 8 Categories and keywords Top terms and the leading sites by category 20 Top search terms Hitwise s top 50 overall search terms, Nielsen s top 50 retail terms 28 A sample search Looking for HDTV; top bidders and destination sites 30 What words cost Top terms and the leading sites by category 32 Search sells Preferred tactics; conversion rates by tactic 34 Search engine optimization tips From an interview with 360i s David Berkowitz 38 Eye tracking Enquiro s Golden Triangle and the Google Effect 40 Local search Leading engines by share, top terms, selected markets and local spending 42 Mobile M:Metrics top engines by share and mobile search use trends over time 44 Click fraud SEMPO s study of advertiser and agency reaction 46 Agencies Top 20 agencies by SEM/SEO revenue 48 Miscellaneous Reaching YouTube; How users click 50
4 6 Advertising Age Search Marketing Fact Pack OVERVIEW U.S. SEARCH MARKETING SPENDING TO 2010 Source: Forrester Report U.S. Online Marketing Forecast: 2005 To 2010, May 2, Paid inclusion is the amount spent on submitting pages to paid directories (like Froogle, Yahoo Shopping) for cataloging. Paid search is the amount spent on paid search media on search engines. Contextual listings is the amount spent buying contextual ads across content sites in different search engine or aggregator networks. Agency fees is the amount of money paid to interactive agencies or search marketing vendors for help managing the above three buys. DIGITAL MARKETING SPENDING IN MILLIONS OF DOLLARS CHANNEL Paid inclusion $321 $366 $408 $447 $485 Agency fees ,092 1,258 Contextual listings 1,181 1,426 1,665 1,881 2,089 Paid search 4,873 5,682 6,444 7,113 7,740 Total 7,067 8,287 9,463 10,533 11,571 U.S. PAID SEARCH AD SPENDING AS % OF ONLINE Source: emarketer (September 2006) using as benchmarks U.S. online advertising spending projections against the Interactive Advertising Bureau-PricewaterhouseCoopers data for which the last full year was Spending in 2005 was 41.0% of all online spending, a 33.6% increase over PAID SEARCH AS PERCENT OF ALL ONLINE AD DOLLARS Forecast % of total Forecast % growth TOTAL DAILY & ANNUAL UNIQUE SEARCHES Source: Data from Piper Jaffray & Co., January 2006, via emarketer. Unique searches in millions. TOTAL UNIQUE SEARCHES U.S. Daily % chg. vs. prior yr Annual 132, , , , ,665 WORLDWIDE Daily 1,065 1,263 1,464 1,669 1,871 % chg. vs. prior yr Annual 388, , , , ,751
5 8 Advertising Age Search Marketing Fact Pack SEARCH ENGINES All other 3.6% Ask 5.5% Time Warner 5.6% SHARE OF 6.5 BILLION SEARCHES Source: comscore qsearch, a division of comscore Networks. Percent change based on the share of searches in August The overall volume of searches increased 28% since August *Change is the difference in share points from year to year (August versus August). Profiles of the top five sites run through Page 18. PERCENT OF SEARCHES AUG. 06 JULY 06 AUG. 05 CHANGE* 1 Google sites 44.1% 43.7% 37.3% Yahoo sites MSN-Microsoft sites Time Warner network Ask network All other Google 44.1% Search Marketing Fact Pack Advertising Age 9 SEARCH SITES BY SHARE OF SITE VISITS Source: Hitwise data for the week ending Sept. 30, Hitwise collects internet usage information through partnerships with ISPs and opt-in panels to monitor more than 10 million users in the U.S. and more than 25 million worldwide. RANK NAME DOMAIN SHARE 1 Google % 2 Yahoo Search search.yahoo.com MSN Search search.msn.com Google Image Search images.google.com Ask.com Yahoo Image Search images.search.yahoo.com AOL Search My Web Search Dogpile ToSeekA SEARCH ENGINE PREFERENCE Source: Harris Interactive commissioned by icrossing June 2005 via emarketer. Engines preferred by U.S. adult internet users who use one search engine exclusively. RANK NAME PERCENT 1 Google 13.0% 2 AOL MSN 10.0 MSN 12.5% Yahoo 28.7% 4 Yahoo/Overture Ask 2.4 SEARCH ENGINE USE BY GENDER Source: Hitwise data for four weeks ending Sept. 30, 2006 RANK NAME MALE FEMALE % 46.84% 2 search.yahoo.com search.msn.com
6 10 Advertising Age Search Marketing Fact Pack GOOGLE GAINS ANOTHER ANGLE UP TO NOW, virtually all Google s revenue has come from text-based search advertising via its automated, low-cost online signup process called AdWords. AdWords lets advertisers implement ad campaigns on Google properties, and via AdSense, on the Google Network of partners and affiliates who share revenue in Google search results. Now Google is poised to add display and video ad streams by monetizing YouTube, the free online video-sharing community it is set to buy for $1.65 billion. Acquisitions and ad partnerships have been integral to Google s growth. The potential now extends to YouTube, billed by some as Google s door to Madison Ave. because it gives Google control of video, precisely the inventory most sought by many marketers. Earlier this year, Google got the search ad business from AOL by investing $1 billion in the Time Warner unit, and from News Corp. s Fox Interactive Media in an exclusive $900 million multi-year deal that also includes MySpace. Google agreed to supply ads on ebay s international auction sites (Yahoo has ebay domestic sites), and signed a $1 billion multi-year deal with Dell to place the Google search bar on new PC screens. Google has kept competitors on edge by launching a multitude of services. Even Yahoo gives Google innovative points for its social networking site Orkut, and for Google Earth and Writely, a web-based processor. Now that video syndication is set to ramp up, Google is well positioned with its product troika: YouTube, the online community Blogger (a previous acquisition), and Google Network ad dispenser AdSense. HEADQUARTERS DOMAIN U.S. market share by searches: 44.1%* Average visitor minutes per month: 32.3* Mountain View, Calif. google.com FINANCIALS % CHG Revenue $6.14 $ Net income U.S. revenue Non-U.S. revenue Notes: Dollars in billions for fiscal years ended Dec. 31. REVENUE BREAKOUT % CHG Total $6.14 $ Advertising Licensing & other revenue Notes: Dollars in billions. Of the $6.07 bil ad total, $3.38 bil (up 112.5%) is from Google s own web sites, and $2.69 billion (up 72.9%) is from the Google Network: Through its AdSense program, Google enables other web sites (its network) to deliver AdWords ads that are relevant to the search results or the content of their pages. Google shares in such revenue generated from ads shown by a member of the network. AD SPENDING % CHG U.S. $8.1 $ Worldwide ad costs Notes: Dollars in millions. U.S. spending is measured media from TNS Media Intelligence. Worldwide ad costs is from Google s 10-K and includes measured and unmeasured forms of advertising. WORKFORCE % CHG Employees 5,680 3, Top execs: Eric E. Schmidt, chmn & CEO; Larry Page, co-founder & pres-prods; Sergey Brin, co-founder & pres-tech Top marketing execs: Omid Kordestani, sr VP-global sls & bus devel; Tim Armstrong, VP-sales & opers Notes: Employee numbers are actual. All of Google s full-time employees are equity holders. AGENCIES Google has no AOR. Project agencies have included Eleven, Goodby, Silverstein & Partners, StrawberryFrog, Crispin Porter & Bogusky. *Source: comscore for share (Aug. 06), minutes (Feb. 06).
7 12 Advertising Age Search Marketing Fact Pack SERVICES PILE UP FOR YAHOO THE COMMUNITY BUILT by the leading online information portal/search engine Yahoo has always been its strong point vis-a-vis its competition. Some 400 million users are attracted to its web sites ladened with news and entertainment, search and online shopping, and a plethora of individual services , message boards, personalized web pages. Other search engines, particularly Google, continue to threaten Yahoo s space. To protect its base, Yahoo like others has turned inquisitive. In need of a strong social network, it spent the summer negotiating with Facebook, a site built around college students. Those talks have cooled. Given the fact growth is limited for regular internet searches, social search is seen as taking search to a new level. In 2005, Yahoo bought Flickr, a photo-sharing website, and del.icio.us, a web service for social bookmarking. Yahoo draws more than 87% of its revenue from advertising, a mix of search and display, including rich media, video and targeting. Through Yahoo Publisher Network, search ads are seen on Yahoo s and other publishers web sites. Partnerships and new services are diversifying that revenue. Yahoo and Microsoft connected their instant messaging platforms this year, thereby generating a community of 275 million users. Yahoo also entered in partnership with China s largest e-commerce firm, Alibaba.com. Other partnerships: AT&T and Verizon for DSL. This year, Yahoo brought Yahoo Go TV to market. It enables users to view and manage PC-based content on their TV sets. And for podcasts and user-generated audio recordings, Yahoo has added search and directory functionality. HEADQUARTERS DOMAIN U.S. market share by searches: 28.7%* Average visitor minutes per month: 244.9* Sunnyvale, Calif. yahoo.com FINANCIALS % CHG Revenue $5.26 $ Net income U.S. revenue Non-U.S. revenue Notes: Dollars in billions for fiscal years ended Dec. 31. REVENUE BREAKOUT % CHG Total $5.26 $ Advertising Fees Notes: Dollars in billions. Advertising is what Yahoo refers to as marketing services and is generated from display of textual, rich media ads, display of text-based links to an advertiser's web site, listing-based services and commerce-based transactions. Fees include revenue from a variety of consumer and business fee-based services. Yahoo created a stir in October when it reported a lower than expected third-quarter profit due declining auto and financial services ads. At the time, Yahoo said it expected an ad boost next year when it launches an improved ad platform codenamed Panama a paid listing model akin to Google's AdWords where clickthroughs impact ranking. AD SPENDING % CHG U.S. $36.8 $ Worldwide ad costs Notes: Dollars in millions. U.S. spending is measured media from TNS Media Intelligence. Worldwide ad costs is from Yahoo s 10-K and includes measured and unmeasured forms of advertising. WORKFORCE % CHG Employees 9,800 7, Top exec: Terry S. Semel, chmn & CEO Top marketing exec: Cammie Dunaway, chief mktg officer AGENCIES Soho Square, OgilvyOne Worldwide. Media: MindShare Worldwide *Source: comscore for share (Aug. 06), minutes (Feb. 06).
8 14 Advertising Age Search Marketing Fact Pack MSN PLAYS UP TARGETING MSN S CACHET IS ITS TARGETING abilities. Its adcenter program, launched in 2005, combines registration data with audience profiling details enabling marketers to home in on their target audience. Now adcenter is set to gain contextuality as MSN pilots Context Ads, which lets advertisers place content-targeted ads on select MSN channels, but eventually will extend to other publishers' sites in the manner of Yahoo Publisher Network and Google's AdSense. A perennial third in search market share behind Google and Yahoo, the web portal MSN provides news, information and entertainment, shopping and games, online info offerings like MSN Search, and communications services such as message boards, Hotmail (261 million active accounts) and instant messaging. The portal includes a dial-up Internet access service (2.1 million subs) and MSN TV, which enables users to surf the web on their TV sets. Revenue is derived primarily from advertisers on MSN, from consumers and partners through subscriptions and transactions generated from online paid services, and from MSN narrowband internet access subscribers. Search revenue declined in fiscal 2006 due to the transition to adcenter. MSN just introduced Soapbox in test, a video sharing service not unlike YouTube. It has gotten high marks for the ease at which users can share videos and find and search for clips. MSN needs a hit in Soapbox to keep users from migrating to a video-enhanced AOL or Google (YouTube). MSN has the search ad deal with social-network site Facebook, although that site is believed to be a current buyout target of Yahoo. HEADQUARTERS DOMAIN U.S. market share by searches: 12.5%* Average visitor minutes per month: 176.0* Redmond, Wash. MSN.com FINANCIALS % CHG Revenue $44.28 $ Net income U.S. revenue Non-U.S. revenue Notes: Dollars in billions for years ended June 30 for Microsoft. MSN REVENUE % CHG Total $2.30 $ Advertising Access Subs/transaction services Notes: Dollars in billions from MSN & Personal Services Group at Microsoft. Advertising is search and display advertising from portals, channels, , and messaging services. Access is MSN narrowband internet access subs (2.1 million in 2006 vs. 2.7 million in 2005) and 261 million active Hotmail and 243 million active Messenger accounts). Subs/transactions are generated from online paid services via consumers and partners. AD SPENDING % CHG U.S. $463.0 $ Worldwide ad costs 1, Notes: Dollars in millions and based on Microsoft as a whole. U.S. spending is Microsoft s measured media from TNS Media Intelligence. Worldwide ad costs is from Microsoft s 10-K and includes measured and unmeasured forms of advertising. WORKFORCE % CHG Microsoft employees 71,000 61, Top corp execs: Bill Gates, chmn; Steven A. Ballmer, CEO Corp marketing exec: Brian Kevin Turner, COO, Microsoft Online Business Group execs: Steve Berkowitz, sr VP; Yusuf Mehdi, chief ad strategist Notes: Online Business Group houses ad sales, business development and marketing for Live, Windows Live and MSN platforms. Employees are for Microsoft and worldwide. AGENCIES McCann Erickson, San Francisco. Media: Universal McCann *Source: comscore for share (Aug. 06), minutes (Feb. 06). Our customers are easier to spot. It s a simple idea in the search industry that far too many overlook. Provide sound, quality strategies that get results. Commit to taking the lead in customer satisfaction by putting people first. And deliver client services that help businesses grow and succeed. It s the value IMPAQT brings to every relationship. And how we can help you stand out from the crowd and be recognized. To find out more about the company JupiterResearch* recognized for Highest Overall Value for the second year, call 888-WHY-IMPAQT. Or visit us online at impaqt.com. Chicago Minneapolis Pittsburgh New York *JupiterResearch SEM Agency Constellation Report, August 2006
9 16 Advertising Age Search Marketing Fact Pack AOL SHIFTS TO AD-BACKED MODEL AOL, A TIME WARNER division, is in the middle of a radical reorganization begun in August that is converting it from a profitable but declining internet dial-up business to an online destination, particularly for video and video search, supported by internet advertising. AOL now offers and software free. AOL is expanding services and adding new ones as part of the plan. It is partnering with four major Hollywood studios to feed downloadable movies through the portal. It introduced a new version of Winamp, the free media player that attracts a global community of 57 million monthly users. AOL is creating a wireless division, and is placing renewed emphasis on services and features for cell phones. In a move to lure former subscribers, AOL introduced OpenRide, free desktop software that gives users access to a digital entertainment media center. There they can listen to music, view photos and watch video. OpenRide also links , instant messaging, web browsing and search. Web search is critical to a business plan predicated on internet advertising, and AOL will need to brand its search perhaps better than the enhanced by Google tag carried by its brands. AOL, ranks second to Yahoo in online audience, but it only has a 5.6% search market share, according to comscore Network s August data. Google just this year purchased 5% of AOL, letting Google keep rights to run AOL s ad search operations. The deal makes more AOL content available to Google users and marks that content as AOL in Google search results perhaps just the right mark to boost the AOL brand. HEADQUARTERS (AOL) DOMAIN U.S. market share by searches: 5.6%* Dulles, Va. AOL.com, Netscape, CompuServe Average visitor minutes per month: 290.5* FINANCIALS % CHG Revenue $43.65 $ Net income U.S. revenue Non-U.S. revenue Notes: Dollars in billions for Time Warner for fiscal years ended Dec. 31. Time Warner is based in New York. AOL REVENUE % CHG Total $8.28 $ Advertising Subscriptions Other Notes: Dollars in billions. Figures are worldwide. AOL s U.S. revenue is estimated at $6.32 billion by Ad Age. Advertising is broken down into Advertising.com at $259 million, up 167%, and pre-paid search/traditional online at $1.08 billion, up 18.8%. Sub revenue comes from 19.5 million U.S. subs in 2005, down 3%, and 6 million subs in Europe, down 1.6%. Other is software providing TW's cable segment access to AOL for high-speed internet, and sale of modems to consumers for internet access. AD SPENDING % CHG U.S. $2.10 $ Worldwide ad costs Notes: Dollars in millions and based on Time Warner as a whole. U.S. spending is Time Warner s measured media from TNS Media Intelligence. Worldwide ad costs is from the company s 10-K and includes measured and unmeasured forms of advertising. WORKFORCE % CHG Employees 87,850 84, Top exec: Richard D. Parsons, chmn & CEO, Time Warner Top marketing exec: Joe Redling, CMO & pres-access bus AOL top exec: Jonathan Miller, chmn & CEO, AOL Notes: Total employees for Time Warner and worldwide AGENCIES AOL s AOR agency: Hill Holliday *Source: comscore for share (Aug. 06), minutes (Feb. 06).
10 18 Advertising Age Search Marketing Fact Pack ASK TOUTS A PURER SEARCH ASK IS THE SEARCH engine that truly focuses on search. Formerly the publicly held company Ask Jeeves, it is now part of IAC Search & Media, its corporate home under IAC/InterActiveCorp, which acquired Ask and its multiple portals in July The IAC division offers country-specific Ask sites in the U.S., U.K., Germany, Italy, Japan, The Netherlands and Spain, and also operates Ask For Kids, portals Excite.com, MyWay.com, iwon.com and Evite, a website offering free online invitation services. A redesigned site was launched in February as part of the rebranding of Ask from Ask Jeeves. In an Ask search, content comes before ads and includes related links that the user might not have considered. Ask uses the Teoma algorithm, now known as ExpertRank, which clusters searches by topic communities. As an example, in a search for global warming the user is asked to expand the search to greenhouse effect. Ask initially was set apart from other search engines that popularized keyword search. Its search technology allowed users to pose questions in everyday, natural language (English). But as keywords became the standard, Ask lost users to Google and others. Ask has since joined the keyword search club but still strives to be intuitive and user-friendly. IAC Search & Media draws most of its revenue from a paid listing supply agreement with Google, which expires in December Paid listings appear on search results generated on Ask web sites in response to keywords selected by advertisers with which Google has entered into contracts. HEADQUARTERS (ASK) DOMAINS Oakland, Calif. ask, excite, iwon, myway, evite.com U.S. market share by searches: 5.5%* Average visitor minutes per month: 19.9%* FINANCIALS % CHG Revenue $5.75 $ Net income U.S. revenue Non-U.S. revenue Notes: Dollars in billions for IAC/InterActiveCorp for fiscal years ended Dec. 31. IAC/InterActiveCorp is based in New York. IAC SEARCH REVENUE % CHG Total $0.49 $ Advertising Notes: Dollars in billions for the IAC Search & Media segment of the parent and estimated by Ad Age. The segment is basically Ask properties and CitySearch. Figures are shown pro forma as if Ask properties were owned for two consecutive years. Ask Jeeves, predecessor to Ask, was acquired May 6, AD SPENDING % CHG U.S. $174.8 $ Worldwide ad costs Notes: Dollars in millions and based on IAC/InterActiveCorp as a whole. U.S. spending is IAC/InterActiveCorp s measured media from TNS Media Intelligence. Worldwide ad costs is from the company s 10-K and includes measured and unmeasured forms of advertising. WORKFORCE % CHG Employees 28,000 26, Top exec: Barry Diller, chmn & CEO, IAC/InterActiveCorp Top marketing exec: Greg Ott, VP-mktg Ask top exec: Jim Lanzone, CEO Notes: Employees for IAC/InterActiveCorp and worldwide AGENCIES Ask.com moved its creative account this fall from TBWA/Chiat/Day to Crispin Porter & Bogusky. At the same time, Mullen s MediaHUB beat out OMD, San Francisco, for the Ask media business, thereby consolidating Ask with its other IAC business, Match.com and LendingTree.com, also part of the review. *Source: comscore for share (Aug. 06), minutes (Feb. 06). WHY ADVERTISE TO COMPANIES WHO WANT TO MARKET IN CHINA? $8.8 Trillion GDP, 1.3 Billion consumers and the 2008 Olympics in Beijing for starters The edge marketers need to build their brands in China With usable data, stats and intelligence on China s economy, media and consumers, the China Fact Pack is the year-round resource marketers will use to better understand China and build their brands in the world s 2ndlargest economy. Distribution ONLINE available for 12 months to AdAge.com s 95,000 weekly unique users PRINT distributed with March 12th issue of Ad Age to all 56,000 subscribers Subscribe to Ad Age and get your copy of the China Fact Pack: adage.com/subscribe Tel: Advertise your own capabilities to help marketers build their brands in China: Suzanne Hermalyn, Director, Business Development Tel: Crain Communications Inc. Fact Packs Industry Rankings Surveys Online Data Center
11 20 Advertising Age Search Marketing Fact Pack Search Marketing Fact Pack Advertising Age 21 CATEGORIES & KEYWORDS TOP TERMS AND DOMAINS Source: Ad Age asked Hitwise to rank the top search terms driving traffic to domains on the most heavily advertised traditional media categories according to TNS Media Intelligence. Ad Age ran a ranking of the categories in the 100 Leading National Advertisers Special Report (AA, June 26.) The category rankings run through Page 27. The top terms shown are those driving traffic to the category. The domains are the top web sites in the category, regardless of how users accessed the site. TOP CATEGORIES REACHED BY SEARCH Source: Hitwise data for the week of Sept. 30, Hitwise collects internet usage information through partnerships with ISPs and opt-in panels to monitor more than 10 million users in the U.S. and more than 25 million worldwide. This table shows that 43.19% of all traffic on health & medical sites came from search engines. On all sites, 20.07% came from search engines. PERCENT OF TRAFFIC (VISITS) RANK CATEGORY FROM SEARCH ENGINES 1 Health and medical 43.19% 2 Education Food and beverage Government Community Travel Music Shopping & classified Aviation Automotive Lifestyle News and media Entertainment Gambling Businesss and finance Computers and internet Sports 7.89 All categories RANK SITE SHOPPING & CLASSIFIED DOMAIN SHARE 1 ebay ebay Motors Amazon.com Craig s List Walmart Target NetFlix.com BestBuy.com Dell USA BizRate 0.6 TOP 8 TERMS DRIVING TRAFFIC SHARE TERM SHARE ebay 1.46 craigslist 0.61 walmart 0.41 ebay.com 0.33 Search mark eting gets potential customers to your door. T Then what? Introducing After The Click target 0.30 amazon 0.27 halloween costumes 0.27 amazon.com 0.25
12 22 Advertising Age Search Marketing Fact Pack TOP SITES BY SHARE OF VISITS BY CATEGORY Source: Hitwise data for Sept Share for search terms below is of all search traffic to the category. RANK SITE AUTOMOTIVE DOMAIN SHARE 1 ebay Motors NASCAR.com AutoTrader.com Kelley Blue Book Cars.com Edmunds Yahoo! Autos autos.yahoo.com MSN Autos autos.msn.com GEICO autobytel.com 0.9 TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE ebay 1.20 kelly blue book 1.08 used cars 0.63 autotrader 0.61 auto trader 0.54 nascar 0.54 ebay motors 0.51 toyota 0.50 cars.com 0.46 nascar.com 0.46 TOP SITES BY SHARE OF VISITS BY CATEGORY Source: Hitwise data for Sept Share for search terms below is of all search traffic to the category. RANK SITE BUSINESS INFORMATION DOMAIN SHARE 1 Yahoo Finance finance.yahoo.com MSN Money moneycentral.msn.com CNN Money money.cnn.com Market Watch Entrepreneur.com Forbes.com Reuters Internal Revenue Service Bankrate Bloomberg 1.6 TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE better business bureau 0.74 irs 0.67 yahoo finance 0.60 mortgage calculator 0.44 ebay 0.38 Search Marketing Fact Pack Advertising Age 23 free people search 0.30 bbb 0.29 akam 0.29 irs.gov 0.26 equifax 0.26 RANK SITE BANKS DOMAIN SHARE 1 Bank of America Bank of America Online Banking onlinebanking-nw.bankofamerica.com Wells Fargo - Online Banking online.wellsfargo.com Wells Fargo Chase Online chaseonline.chase.com Chase Investment Banking Citi Cards - Online Services Capital One USA Wachovia Washington Mutual - Personal Banking Online onlinebanking.personal.wamu.com 2.2 TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE bank of america wells fargo 1.41 wachovia 0.90 bankofamerica 1.12 chase 0.88 wellsfargo.com 1.12 capital one 0.79 bankofamerica.com 1.00 chase.com 0.75 RANK SITE STOCKS & SHARES DOMAIN SHARE 1 Yahoo! Finance finance.yahoo.com MSN Money moneycentral.msn.com TD AMERITRADE Fidelity Investments CNN Money money.cnn.com The Vanguard Group E*TRADE Market Watch Fidelity Investments - NetBenefits netbenefits.fidelity.com Charles Schwab 2.6 TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE scottrade 1.14 ebay 0.63 fidelity 1.02 fidelity.com 0.59 yahoo finance 0.98 etrade 0.59 ameritrade 0.76 vanguard.com 0.52 vanguard 0.75 akam 0.46
13 24 Advertising Age Search Marketing Fact Pack Search Marketing Fact Pack Advertising Age 25 TOP SITES BY SHARE OF VISITS BY CATEGORY Source: Hitwise data for Sept Share for search terms below is of all search traffic to the category. RANK SITE TELECOMMUNICATIONS DOMAIN SHARE 1 Cingular Wireless Verizon Verizon Wireless Cingular Account Quick Access Sprint T-Mobile USA AT&T att.sbc.com My T-Mobile my.t-mobile.com Verizon Wireless - My Account myaccount.verizonwireless.com Cingular Wireless - Online Store onlinestore.cingular.com 3.3 TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE cingular 4.96 verizon 3.92 verizon wireless 2.54 t-mobile 1.57 cingular.com 1.54 sprint 1.39 tmobile 1.25 nextel 1.21 t mobile 1.07 cingular wireless 1.01 RANK SITE FLOWERS & GIFTS DOMAIN SHARE 1 Hallmark.com Birthday Alarm The Lakeside Collection Collections ETC DaySpring Cards Florists Transworld Delivery flowers.com ProFlowers A.C. Moore RedEnvelope Gifts 1.4 TOP 8 TERMS DRIVING TRAFFIC SHARE TERM SHARE flowers 2.38 ftd 0.46 hallmark 1.36 hallmark cards 0.43 hallmark.com 0.79 gift baskets things remembered 0.39 RANK SITE HEALTH & MEDICAL DOMAIN SHARE 1 TL Sciences Merck Lamisil Ambien CR Tylenol Bausch & Lomb-PureVision Pfizer Consumer Healthcare Cymbalta RX Generic Drugs Purple Pill - Nexium 1.1 TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE lexapro 0.90 herpes 0.38 cymbalta 0.59 depression 0.37 viagra 0.48 phentermine 0.36 zoloft 0.43 wellbutrin 0.28 pfizer 0.43 merck 0.27 rock-solid cash flow Partnering with TMPDM will make your life easy. When it comes to media selection, there s no guessing. No chaos. Just rock-solid experience that helps us determine the perfect mix of traditional and interactive marketing for your company. Get ready to watch the cash flow.
14 26 Advertising Age Search Marketing Fact Pack TOP SITES BY SHARE OF VISITS BY CATEGORY Source: Hitwise data for Sept Share for search terms below is of all search traffic to the category. RANK SITE BEAUTY DOMAIN SHARE 1 Avon.com Arbonne Mary Kay Sephora.com Bath and Body Works Lancome USA About Beauty and Health beauty.about.com Makeup Alley HairBoutique.com Procter & Gamble 1.9 TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE hairstyles 3.95 hair styles 2.09 avon 1.29 homecoming hairstyles 0.93 makeupalley 0.79 bath and body works 0.67 bare minerals 0.66 sephora 0.65 short hair styles 0.57 arbonne 0.53 Search Marketing Fact Pack Advertising Age 27 TOP SITES BY SHARE OF VISITS BY CATEGORY Source: Hitwise data for Sept Share for search terms below is of all search traffic to the category. RANK SITE MOVIES DOMAIN SHARE 1 The Internet Movie Database NetFlix.com Yahoo! Movies movies.yahoo.com Blockbuster MSN Entertainment - Movies movies.msn.com Moviefone.com Fandango.com Rotten Tomatoes Movies.com MovieTickets.com 1.3 TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE imdb 1.10 netflix 0.99 movies 0.68 blockbuster 0.64 fandango 0.35 netflix.com 0.24 hollywood video 0.22 blockbuster.com 0.21 harry potter 0.19 movie times 0.19 RANK SITE FOOD & BEVERAGES DOMAIN SHARE 1 Kraft Foods USA Wrigley s Candystand BettyCrocker.com Pizza Hut USA Pillsbury Boca Java Gevalia Pepsiworld NabiscoWorld.com Maxwell House 1.7 TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE pizza hut 2.06 dominos pizza 0.60 starbucks mcdonalds 0.98 betty crocker 0.54 subway 0.72 candystand.com 0.52 candystand 0.65 burger king 0.49 RANK SITE TRAVEL DOMAIN SHARE 1 MapQuest Yahoo! Maps maps.yahoo.com Expedia.com Travelocity.com Southwest Airlines Orbitz Cheap Tickets Google Maps maps.google.com Yahoo! Travel travel.yahoo.com Priceline.com 1.3 TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE mapquest 4.05 southwest airlines 0.55 map quest 1.37 expedia 0.55 maps 1.09 travelocity 0.54 mapquest.com 0.76 google earth 0.46 driving directions 0.59 orbitz 0.45
15 28 Advertising Age Search Marketing Fact Pack Search Marketing Fact Pack Advertising Age 29 TOP SEARCHES A PORN-FREE LOOK AT THE TOP 50 From Hitwise for four weeks ending Sept. 30, Share is the percent of all terms searched. TOP 50 RETAIL & PRODUCT SEARCHES From Nielsen/NetRatings MegaView Search for the month of August Searches are in thousands. RANK TERM SHARE RANK TERM SHARE RANK TERM SEARCHES RANK TERM SEARCHES 1 myspace yellow pages walmart 2, macys myspace.com halloween costumes target 2, sams club ebay games home depot 2, qvc.com yahoo weather amazon 1, used cars amazon lowes 1, radio shack mapquest amazon.com qvc 1, kohls my space home depot cingular 1, toyota myspace layouts best buy best buy 1, dogs yahoo.com msn sears 1, dell.com steve irwin pogo.com verizon 1, dish network craigslist people search office depot 1, lowe s dictionary espn store fixtures 1, direct tv lyrics aol.com german shepherds old navy walmart cingular costco petsmart map quest mapquest.com walgreens hp google sears walmart.com ford wikipedia facebook staples girls gone wild white pages lowes bed bath and beyond wal mart youtube limewire sprint cingular.com ebay.com msn.com kmart verizon.com maps runescape wal-mart cingular wireless match.com pogo ikea ipod bank of america you tube overstock.com compusa target aol target.com furniture verizon verizon wireless
16 30 Advertising Age Search Marketing Fact Pack Search Marketing Fact Pack Advertising Age 31 A SAMPLE SEARCH To illustrate the life of searches for a popular item, Ad Age asked Hitwise to track searches for HDTV. Ad Age also queried Yahoo s public View Bids tool to come up with the top 15 bids HDTV on Yahoo.com. The findings are likely to be in the mix this coming year for countless Americans in search of the ever-popular high definition TV sets given that the 30 million HDTV sets in use in the U.S. by the third quarter of 2006 will grow to 40 million by year's end, and hit 70 million by the end of 2007, according to estimates from HDNet, the all-high definition national TV network. TOP 15 BIDS FOR THE TERM HDTV Source: Yahoo s public View Bids tool for Oct. 11, Bidders pay only one cent above the next lowest bid per click. In Yahoo search, highest bidders always appear on top of search results pages, but Yahoo plans to roll out relevancy rankings in the first quarter of Bid is the advertisers maximum bid. RANK BIDDER/AD TEXT/SITE BID RANK BIDDER/AD TEXT/SITE BID 1 HDTV at AOL $2.02 Find great deals at AOL Shopping - shop conveniently at home and save. shopping.aol.com 2 Hitachi Plasma HDTV 2.01 Experience Hitachi s HDTV technology in an ultra compact design. 3 Vikuiti Brighter LCD HDTV 2.00 Visit Vikuiti.com to compare LCD, plasma and DLP TVs. 4 HP MediaSmart TV 1.00 The HP MediaSmart 37 LCD HDTV - TV is personal again. Learn more. 5 Vizio Electronics - HDTV 1.00 Visio 50 Plasma Monitor $1,999. Where vision meets value. Learn more. 6 Comcast Digital Cable - Official Site 0.87 Bring HDTV into your home with Comcast Digital Cable. 7 Buy HDTV Stock for $ No Account or Investment Minimums. No Inactivity Fees. Trade Online. 8 Get HDTV Special Deal 0.82 HDTV for $19.99 a month with free movie channels and $100 rebate, call today for free installation and DVR. www-dishnetwork.com 9 Time Warner HDTV Digital Cable Service $0.72 An ultimate TV experience. Theater-like quality with wider viewing area, crystal-clear pictures and surround sound technology. High definition movies, events and programs. Free set-top box. 10 HDTV Deals in Your Zip 0.58 Great selection. Incredible prices. 11 HDTV Televisions - Bargain Prices 0.57 Shop fast, Buy smart, Shopzilla for HDTV Televisions and other Televisions and Accessories. Every product from every store means you get a Bargain Price. Don t just shop, Shopzilla. 12 New TiVo HD Series3 - Official Site 0.50 The only THX-certified HD TV recorder. Get the new TiVo HD box today. tivo.com 13 HDTV - Time Warner Digital Cable 0.48 Order Time Warner Digital Cable:DVR, HDTV, On Demand & no contract. Order now for over 200 channels and parental controls. As low as +$39.95/MONTH FOR 3 MONTHS. 14 HDTVs at BestBuy.com 0.46 Buy high quality televisions at BestBuy.com. 15 DIRECTV Makes It Easy to Get HD 0.40 Official Site. Order DIRECTV today w/ our incredible HD package plus get 250+ digital-quality channels w/ superior picture & sound at a great value - an ultimate entertainment experience. TOP 10 WEBSITES THAT RECEIVED TRAFFIC FROM THE TERM HDTV Source: Hitwise for four weeks ending Sept. 30, Percent of volume is the share of all traffic that went to the site after searching for HDTV. RANK SITE % VOLUME % 2 search.dlp.com electronics.howstuffworks.com hdtvinfoport.com THE FUTURE OF SEARCH MARKETING Wondering Why Your Customers Can t Seem to Find You? As a Marketing Professional you know that without a properly optimized website, your company will be losing potential customers. But until now, site optimization has been a frustrating and unpredictable process, based primarily on hunches and educated guesswork. That s why we developed SEMLogic TM which uses semantic analysis, artificial intelligence and quantitative analysis to bring a new level of rigor and certainty to the entire SEO process SEMLOGIC [ ]
17 32 Advertising Age Search Marketing Fact Pack Search Marketing Fact Pack Advertising Age 33 WHAT WORDS COST TOP BIDS FOR SELECT PAID SEARCH TERMS ON YAHOO Source: emarketer using Yahoo Search Marketing (formerly Overture) to identify high bids for the top five positions as of Jan. 23, 2006 at 2:30pm EST. TOP BIDS BY POSITION TERM NO. 1 NO. 2 NO. 3 NO. 4 NO. 5 Hotel $2.00 $1.30 $1.29 $1.20 $1.13 Car rental Computer Bicycle Automobile Viagra Sopranos Subaru Forester Real estate San Francisco Starbucks PERCENT CHANGE FOR SELECT TERMS Source: emarketer using Yahoo Search Marketing (formerly Overture) to identify the percent change on high bids for select terms as of Jan. 23, 2006 at 2:30pm EST. versus Dec TOP BIDS BY POSITION TERM NO. 1 NO. 2 NO. 3 NO. 4 NO. 5 Hotel 13.6% -25.7% 16.2% 9.1% 4.6% Car rental Computer Bicycle Automobile Viagra Sopranos Subaru Forester Real estate San Francisco Starbucks OVERALL COST PER CLICK Source: Data from MarketingSherpa, March 2006, via emarketer.. Notes: N=3,271 SEM marketers & agencies and 776 affiliate marketers & merchants. Data are for U.S. paid search ads only. COST PER CLICK ENGINE % CHG Google AdWords $1.61 $ Yahoo/Overture PPC Shopping engines nd tier search properties NA AVERAGE PAY-PER-CLICK TERM COST FOR TOP KEY TERMS AMONG THE TOP FIVE SEARCH ADVERTISING INDUSTRIES Source: Data from Click Forensics. Top five industries are retail, financial services, health & fitness, technology & entertainment. AVERAGE TIME PERIOD COST First quarter 2006 $4.75 Second quarter Third quarer BIDDING STRATEGIES Suggestions from Kevin Lee, executive chairman and co-founder of Did-It, a search agency. 1 Fight the irrational need to "Kill the competition whatever it takes." 2 Focus beyond bids and position. Enhance relevance of landing pages, segment your clickstream and then you'll be able to afford top position when it counts. 3 Test your ad creative because after the Yahoo "Panama" launch all the engines will reward good creative. 4 Test landing pages regularly. 5 Go beyond "search sales" to "search marketing" by factoring in offline conversions, lagged conversion and the branding that occurs early in the buying funnel. 6 Apply the same best practices in segmentation to your search campaign as you would any marketing campaign.
18 34 Advertising Age Search Marketing Fact Pack SEARCH SELLS BEST & WORST PERFORMING ONLINE AD TACTICS Source: Data from MarketingSherpa, January 2006 via emarketer's Search Marketing I: Spending and Metrics. "Best" refers to respondents who said the tactic performed "great" and "worst" refers to respondents who said they were "disappointed" in the tactic's performance. % RESPONDING % RESPONDING RANK TACTIC BEST WORST 1 Paid search ads 52% 8% 2 house list Rich media ads Behavioral targeting Search engine optimization Contextual targeting Affiliate marketing Text link ads Pop-ups, pop-unders Ads in newsletters Banner ads rented lists Now marketers finally have a tool to understand the rapidly changing digital media landscape With all the new digital media options emerging every day, reaching consumers is more challenging than ever. Ad Age s Digital Fact Pack is loaded with usable data, stats and intelligence to help marketers understand all the digital media options, how consumers use them, and which ones deliver real ROI. DISTRIBUTION ONLINE available for 12 months to AdAge. com s 95,000 weekly unique users PRINT distributed with April 23rd issue of Ad Age to all 56,000 subscribers Subscribe to Ad Age and get your copy of the Digital Fact Pack: adage.com/adage.com/subscribe Tel: Advertise your own capabilities to help marketers utilize digital media to build their brands: Suzanne Hermalyn, Director, Business Development Tel: U.S. SEARCH MARKETING CONVERSION RATES FOR PAID SEARCH ADVERTISING VS. SEO BY CAMPAIGN GOALS Source: Data from MarketingSherpa, March 2006 via emarketer's Search Marketing: Players and Problems, April N=3,271 SEM marketers & agencies and 776 affiliate marketers & merchants. When gathering registration data was the goal, paid search outperformed SEO; when a service purchase was the goal, SEO performed better. PERCENT CONVERSION RATE CAMPAIGN GOALS PAID SEARCH SEO Registration data 5.7% 5.2% Specific action taken Delayed e-commerce or service purchase E-commerce product or service purchase Offline conversion Average Crain Communications Inc. Fact Packs Industry Rankings Surveys Online Data Center
19 36 Advertising Age Search Marketing Fact Pack SEARCH ENGINE MARKETING PROGRAM SUCCESS Source: Data from IntelliSurvey & Radar Research commissioned by SEMPO, Dec. 2005, via emarketer's Search Marketing: Spending and Metrics, April N=553; 72% of respondents are from North America. Metrics tracked by search engine advertisers & agencies worldwide. The three metrics most tracked by search engine advertisers are increased traffic volume to their web sites, conversion rates and clickthrough rate. Cost per click is tracked by 55% of advertiser respondents, more than return on investment, which is tracked by 47%. PERCENT OF RESPONDENTS RANK METRIC ALL ADVERTISERS AGENCIES REAL-TIME NEWS AND ANALYSIS WHENEVER, WHEREVER, HOWEVER YOU NEED IT For complete access, subscribe now at adage.com/everywhere2 1 Increased traffic volume 80% 71% 85% 2 Conversion rate Clickthrough rate Return on investment Cost per click CPA Total number of online sales SEARCH ENGINE USERS MOST INFLUENCED BY SEARCH ENGINE ADVERTISING FOR PURCHASE DECISIONS BY SEARCH & PURCHASE CATEGORY Source: Notes: Data from BIGresearch, Dec and imedia Connection, Feb via emarketer. Multiple responses allowed. *Includes food, cleaning & beauty. PERCENT OF RESPONDENTS BY ENGINE CATEGORY GOOGLE YAHOO MSN AOL ASK ALL Electronics 30.5% 27.5% 24.9% 23.9% 20.8% 26.7% Apparel Grocery* Home improvement Cars & trucks Medicines Telecom services Eating out Madison+Vine Ad Age Digital AdCritic.com Creativity Advertising Age 2006 Crain Communications Inc.
20 38 Advertising Age Search Marketing Fact Pack Search Marketing Fact Pack Advertising Age 39 WEB SITE OPTIMIZATION TOP 12 SEO STRATEGIES FOR 2007 From an interview with David Berkowitz, director of strategic planning at 360i, a New York-based search marketing agency. Mr. Berkowitz offers these 12 tips for search engine optimization. 1. Use Google Base, a free version of paid inclusion; optimize feeds for it Try this: In Google, type in Used cars. A link above the natural search results will offer you a link to Refine your search to used cars. Click on the link. The results are a prepared feed with no web link. They were uploaded en masse, and automatically became part of the Google Base. Google is populating its main search engine with links to Google Base. Searchers get hyper-relevant results as if to say Google knows some results that are even more relevant than what our algorithm found. It s in Beta. 2. Optimize anchor text the copy within hyperlinks Make sure the text in the link is relevant, and doesn t just say click here. Search engines pay more attention to links and their anchor text. 3. Blog PR get bloggers on board, and if they bite, they ll link to you Have a blog and have bloggers refer to your site. This is a public relations activity. Be front and center in blogger s minds. 6. External link development get partners/affiliates/vendors linking to you, in the way you want to be linked Another example is a media company with 10 stations. They should link to each other. More obviously, Federated Department Stores should link to all its stores, using very accessible pages with cross linking. 7. Blog: Get major link juice by squeezing your own corporate or trend blogs for all they re worth. Currently, just 6% of the Fortune 500s blog Self-explanatory. 8. Tagging: Allow all your content to be tagged so it s included everywhere tags are found (del.icio.us, digg, reddit, flickr, Yahoo My Web, etc.) Encourage your consumers and users of your site to tag your content. Give it additional visibility by facilitating the tagging of the data. For example, on every story there should be a digg link. Major media should be embracing this, so should retailers. Adding to digg can be a huge asset. It drives traffic. 9. Social media optimization: Leverage all the links and marketing value you can get from social networks and business networks Exploit the viral nature of your appearances on other sites. Make sure there are links back to your site. If you re creating the other sites, enhance the long-term value of the subsites. 10. Google Co-Op: Become an authority and offer a syndication channel through this service for limited but valuable natural search rankings Anyone can declare themselves an expert and create links to their category. (also in Beta) offers a powerful way to get web sites on top of the search results. When users subscribe, if they search in the topic, you ll come up on top of the natural search rankings, even higher than Google base. 4. mrss Media RSS, the syndication vehicle for video Make sure your video is RSS capable. You can submit feed to Yahoo. mrss is likely to become standardized. Metadata attached to it makes it easier to syndicate. Tags indicate size of file and video. search.yahoo.com/rss 11. Wikis: Host a link-rich wiki and encourage others to share their knowledge in the process Create a wiki for your topic for your site. Combine your encyclopedic knowledge of your industry with user generated content. 5. Microcontent tap into the new way search engines are indexing the web semantically Defining a piece of content as a review, an overview, contact information or location allows engines to more easily classify content. There s more information at which has a wiki. Items called hcards act just like vcards, and allow your computer to add someone s contact information. Yahoo locally uses microformats, so if an item is tagged as a restaurant review, it s more likely to appear at the top of local search for dinner. 12. Long-tail optimization optimize around certain valuable long tail keywords people are using to find you Look at how people are finding your site. Make sure you know what site they came from and what keywords they used to find you. Using that knowledge, make sure there s content like an occasional blog post, writing now and then about what you were searched by. Build out on products users were searching for when they found you. As searches become more complex, optimize more complex combinations of those words.