About 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. THEY TRIED TO SELL THEIR SEARCH ALGORITHM TO YAHOO FOR $ 1 MILLION Source: Hal Varian’s Berkeley Lecture on Search Economics
- 7. THEY FOUNDED GOOGLE IN 1998 AND WENT PUBLIC IN 2004
- 8. AROUND TEN YEARS AGO THERE WERE MANY SEARCH ENGINES
- 9. TODAY, THERE ARE EFFECITVELY 5 PRIMARY SEARCH PROVIDERS comScore April 2008 Search Engine Rankings
- 10. AND 3 PAID SEARCH PROVIDERS Based on June 2008 Covaris numbers reported at mediapost (msn is inferred)
- 11. PAY PER CLICK MODEL $0.25 x 10000 clicks = $2500 $1.00 x 2500 clicks = $2500 $10.00 x 250 clicks = $2500
- 12. GOOGLE’S ORGANIC SEARCH GOAL IS USER SATISFACTION
- 13. GOOGLE’S PAID SEARCH GOAL IS USER SATISFACTION ADVERTISER SATISFACTION MAXIMUM PROFITABILITY
- 14. PAY PER CLICK MODEL $0.25 x 10000 clicks = $2500 $1.00 x 2500 clicks = $2500 $10.00 x 250 clicks = $2500
- 15. WHY AD POSITION MATTERS – EYE TRACKING Source: Jan Pederson’s Search Quality Presentation at Berkeley (2007)
- 16. PPC - BIDDING ashtonsd90.com bids $1.38 ritzcamera.com bids $1.17 shopcartusa.com bids $3.23
- 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. RANK THEM ashtonsd90.com bids $1.38 ritzcamera.com bids $1.17 shopcartusa.com bids $3.23
- 22. NORMAL AUCTION ashtonsd90.com bids $1.38 , ranks 2 nd and pays $1.38 ritzcamera.com bids $1.17, ranks 3 rd and pays $1.17 shopcartusa.com bids $3.23, ranks 1 st and pays $3.23
- 23. VICKREY AUCTION (VCG) ashtonsd90.com bids $1.38 , ranks 2 nd and pays $1.17 ritzcamera.com bids $1.17, ranks 3 rd and pays ??? shopcartusa.com bids $3.23, ranks 1 st and pays $1.38
- 24. GOOGLE AND YAHOO USE A GENERALIZED SECOND PRICE (GSP) AUCTION 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
- 25. AD RANK = BID x QUALITY SCORE (QS) ashtonsd90.com 1.38 x 4 = 5.52 ritzcamera.com 1.17 x 6 = 7.02 shopcartusa.com 3.23 x 1 = 3.23
- 26. HYPOTHESIZED PRICE = NextPlace(AR) / QS +.01 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
- 27. HOW MUCH WOULD NIKON HAVE TO PAY FOR NUMBER 1? HYPOTHESIZED PRICE = NextPlace(AR) / QS +.01 Company Bid QS AR Ashtonsd90 ? 4 Ritzcamera 1.17 6 7.02 Shopcartusa 3.23 1 .05
- 28. GOOGLE SYNDICATES ITS ADS TO PARTNER SITES
- 29. GOOGLE SYNDICATES ITS ADS VIA ADSENSE
- 30. A FEW ADSENSE SITES GENERATE GOOD REVENUE As compiled on mindofmichael.com
- 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. PHOTO ATTRIBUTIONS Slide 37: 'Happy Kids NEED A Healthy Sandbox‘ www.flickr.com/photos/44124458380@N01/567277264