SMX@adtech: Trends and Developments — JeffPruitt

Panelists:

SMX @ ad:tech: Trends and Developments in Search Marketing

Dana Todd, CMO, Newsforce, Inc.

Jeffrey Pruitt, Advisor, iCrossing, and Chairman, SEMPO

Sandor Marik, Director of Marketing, Condé Nast Digital

Jim McDonald, Senior Manager, Search and CRM, Match.com

Moderator:Danny Sullivan, Editor-in-Chief, SearchEngineLand.com

“Search and Search Engines are the collective consciousness of today’s

World giving equal access to anyone, anywhere.”

Internet Connection: Anyone, Anywhere at Anytime

Always-on Network

Brands need a new model to be successful

Aware Active TrustedUseful

Creating connected brands.

Agenda

• The Market Opportunity for Search• Evolution of Search

– Digital Asset Optimization– Performance Media

• Brand Model

THE MARKET OPPORTUNITY FOR SEARCH

What are Companies Spending in Search?North America, all Search Tactics and Technology

  2008 Advertiser SEM Spending ($mm) Share of Total Share of Tactic

Paid Placement $11,913,431 88.4%  

Search Media Firms $10,756,866 79.8% 90.3%

SEM Agencies $351,822 2.6% 3.0%

In-House $804,743 6.0% 6.8%

Organic SEO $1,424,813 10.6%  

SEM Agencies $300,599 2.2% 21.1%

In-House $1,124,214 8.3% 78.9%

SEM Tech $141,538 1.1%  

Leasing $9,436 0.1% 6.7%

SEM Agencies $51,223 0.4% 36.2%

In-House $80,879 0.6% 57.1%

Total $13,479,782    

Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers, Nov 08-Jan 09. Global Results. and Radar Research Forecast, North America, 2/09

U.S. Online Advertising SpendingTotal Dollars in Billions by Format, 2001 - 2012

0

5

10

15

20

25

2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011* 2012*

Sp

en

din

g (In

bil

lio

ns)

Year

Search

Display

Classified

Rich Media

Email

$3.85b (38%)

$10.78b(42%)

PAST$19.65b(47%)

FUTURE

$0.25b(3%)

Source: eMarketer, US Online Advertising Spending Report, October 2008

Organic SEO Most Popular of SEM ProgramsBy Advertiser Respondents, 2004-2007

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007

Ad

vert

isers

E

ng

ag

em

en

t (P

erc

en

tag

e)

Year

Organic SEO

Paid Placement

Paid Inclusion

Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers, December 2005. Global Results.

Media Budgets Continue Move to Search from other Media

"From which marketing/IT programs are you shifting budget away and moving it to your search marketing programs?“

Biggest shifts from offline marketing: print, direct mail and TV

Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers, Nov 08-Jan 09. Global Results. Advertisers n=317

Brand, Sales, Leads and Traffic Are Top Objectives of Paid Placement Programs Among Advertisers

"What is your company using search engine marketing to accomplish?"

Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers, Nov 08-Jan 09. Global Results. Advertisers n=317

SEMPO Survey: Advertisers Plan to Increase Spending on Search Ads Moderately in 2009

Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers, Nov 08-Jan 09. Global Results. Advertisers n=229

Our Market = Our Opportunity

Pundits say by 2012 … “ ” (SEMPO + eMarketer)

Search MarketingSearch Marketing Display MarketingDisplay Marketing

Social MarketingSocial Marketing VideoVideo

$40+ Billion$40+ Billion

EVOLUTION OF SEARCHInspiring Marketers to Change!

Platform

Content

Digital Asset Optimization (DAO, not just SEO)

Google Confidential and Proprietary 18

Search in 2001…

Twitter results

Store locater

Organic results

Today… Better answers, faster

Video Results

Including stock quotes, and site links

Search Wiki

Local Results

PERFORMANCE MEDIA

Advertising Platforms

• Ad Platforms include: APT, Google Adwords, AdCenter

• The digitization of all content will lead to new advertising methods across multiple forms of content

• Advertising platforms will be utilized to manage cross channel campaigns as “Performance Media”

Search Driven Media Buying Platform

AP

I

Cross-MediaBid/Buy Tool

Media Buyer

AP

IA

PI

AP

I

3rd Party AdManagement

& Serving Tool

Bid Management

AP

IA

PI

Ad Network

Ad Exchanges

+ =

RadioTVPrint

Buying Search, Contextual, Display Ads & Video

DisplayVideoExchanges

Search

CONVERGENCE OF SEARCH + DISPLAY

Performance Media(CPA/CPC)

Convergence of Search and Display

Search DisplaySite Targeting

Contextual

Exchanges

Retargeting

BT

Site Targeting

Contextual

Exchanges

Retargeting

BT

PAST Branding(impressions/CPM)Performance

BrandingNOWNOW

BRAND MODEL

Program ManagementIntegrating the digitization of all content and advertising

Search is at the Center of all Media

SearchSearch

Thank you.Jeffrey Pruitt

Advisor, iCrossing, and Chairman, SEMPO