Top 10 Search Marketing Research Results
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1 Annual Teleconference: Top 10 Search Marketing Research Results Research drawn from Search Engine Benchmark Guide Anne Holland, Publisher Stefan Tornquist, Research Director
2 Facts not Opinion: MarketingSherpa Methodology! Primary Research from MarketingSherpa " Survey of 3,271 SEM marketers and agencies. " Survey of 776 affiliate marketers and merchants. " 7 eyetracking tests of major search engines and shopping comparison sites.! Exclusive Data " Unique data produced for the Guide from 16 research sources, including Nielsen/Netratings, Hitwise and comscore.! Best of Secondary Research " Data and analysis from 49 studies, surveys & research projects from research organizations and search marketing experts.
3 #1 The U.S. Search Market Search Market Spending (in 000s) SEO spending grew by more than 277%. $6,000,000 $5,000,000 $5,500,000 $4,000,000 $3,300,000 $3,000,000 $2,000,000 $1,000,000 $0 7% of Paid Search 12% of Paid Search $660,000 $238, Paid Search SEO Source: MarketingSherpa, Search Marketing Benchmark Survey, August 2005 & Merrill Lynch, Internet Advertising Report, June 2005
4 #2 Cost per Click 2004/2005 Cost per Click: Overall 2004/2005 Growth in Shopping engine CPC outpaces growth in usage. $3.00 $2.50 $2.00 $1.61 $1.87 $2.56 $1.50 $1.29 $1.34 $1.00 $1.03 $0.50 $0.58 $- Google AdWords Yahoo/Overture PPC Shopping engines 2nd tier search properties Source: MarketingSherpa, Search Marketing Benchmark Survey, August 2005 and MarketingSherpa, Search Marketing Metrics Survey, June 2004
5 #3 Keyword Buying Growth 2004/2005 Keyword Volume /2005 Keyword volume growth slowing, but holidays will tell for sure. 20,000 15, Month Growth Rate: 90% 14,700 6 Month Growth Rate: 36% 17,314 10,000 9,100 5,000 - Keywords for September, 2004 Keywords for March, 2005 Keywords for September, 2005 Source: MarketingSherpa, Search Marketing Benchmark Survey, August 2005 and MarketingSherpa, Search Marketing Metrics Survey, June 2004
6 #4 Keyword Research Tactical ROI Keyword Research ROI - 5+ Years Exp. Marketer feedback isn t the best route to identifying keywords. Segmenting website log files looking for highly converting keywords Analyzing website log files for frequently occurring keywords Phrase matching Exact matching 5% 8% 8% 13% 30% 39% 39% 40% 48% 48% 56% 60% Great ROI Medium ROI Low ROI Negative matching 24% 34% 44% Client customer service/sales staff feedback 15% 37% 49% Client marketer feedback 18% 24% 58% Focus groups 12% 44% 44% Scraping/analyzing competitors' sites 17% 23% 60% Tools from the search engines 17% 24% 59% In-house keyword software 17% 24% 58% 0% 10% 20% 30% 40% 50% 60% 70% Source: MarketingSherpa, Search Marketing Benchmark Survey, August 2005
7 #5 Eyetracking - How we view search Proof of the importance of rank, and the uniqueness of search engines. Source: MarketingSherpa & Eyetools Inc Lab Study August 2005
8 #6 B-to-B Search - Impact of Rank Impact of Rank on Organic and Paid Search You knew rank was important but especially so in paid ads. Rank 1 Rank 2 Rank % 24.2% 19.5% 9.8% 12.8% 51.0% Rank 4 Rank 5 4.6% 9.5% 0.6% 8.6% Paid Search Organic Rank 6 5.2% 6.7% Rank 7 1.3% 5.3% Rank 8 2.6% Rank 9 3.9% Rank % 0% 10% 20% 30% 40% 50% 60% Source: Enquiro with MarketingSherpa, The Role of Search in B-to-B Buying Decisions, October 2004
9 #7 Affiliates & Search - Trademarks, etc. Affiliates and Search Views on how affiliates use TMs are changing fast. We don't allow our affiliates to use our TMs/branded terms in the search engine marketing. 21% 39% January '05 August '05 We essentially outsource our search engine marketing to our affiliates, and we give them free reign with TMs and branded terms. 29% 50% 0% 10% 20% 30% 40% 50% 60% Source: MarketingSherpa Affiliate and Merchant Survey, August 2005
10 #8 The Impact of SEO Six Months On Lift from SEO - Agency vs. In-house 34% of SEM marketers use an agency for SEO. 120% 100% 110% 80% 60% 40% 38% 20% 0% In House SEO SEO Agency Source: MarketingSherpa, Search Marketing Benchmark Survey, August 2005
11 #9 PPC/SEO Conversion Rates Conversion by Campaign Goal SEO is a huge driver of latent conversions. Average Offline conversion 2.8% 3.6% 3.6% 4.2% Specific action taken 3.9% 4.3% Paid Search SEO Registration data 5.2% 5.7% Delayed ecommerce/service purchase 4.2% 6.3% ecommerce product/service purchase 3.8% 4.1% 0% 1% 2% 3% 4% 5% 6% 7% Source: MarketingSherpa, Search Marketing Benchmark Survey, August 2005
12 #10 SEO and Public Relations Press releases are for customers, not journalists. Source: Shawn Collins Consulting, December 2004
13 How to get your own copy today: Our research team welcomes feedback and/or questions. Stefan Tornquist, Research Director Sherpa.com! 210 charts and tables; 296 pages! 7 full-color eye-tracking heatmaps! Real-life data from 3271 marketers MarketingSherpa, Inc. 499 Main Street Warren, RI (877) Outside the U.S.(401) For more information or to order call or
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