Budgeting for Your Search Marketing Program Strategies for staying one step ahead of the rest

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Housekeeping Items

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1 Overall Advertising Spend How to budget for Search and Social amongst other marketing initiatives

2 Digital Marketing Industry Trends Expected growth in interactive marketing channels

3 Budgeting for Seasonality Best practices for spending wisely throughout the year

4 Tracking and Budget Reallocation Utilizing attribution management to properly allocate marketing spend

Webinar Agenda

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1 Overall Advertising Spend How to budget for Search and Social amongst other marketing initiatives

2 Digital Marketing Industry Trends Expected growth in interactive marketing channels

3 Budgeting for Seasonality Best practices for spending wisely throughout the year

4 Tracking and Budget Reallocation Utilizing attribution management to properly allocate marketing spend

Webinar Agenda

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1 Overall Marketing Spend Step One: Determine the advertising-to-sales ratio in your particular field

Source: http://www.businessweek.com/smallbiz/content/feb2009/sb20090210_165498.htm

• Public companies in your industry may give a figure for their marketing

spend in their financial statements and/or annual reports

• If no reports are available, start at 5% and then adjust projected spend

based on the size of your market, cost of media spend, and competitive

analysis

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1 Overall Marketing Spend Step Two: Is your business built on Volume or Margin?

Volume Margin

- Tend to spend a tiny

percentage of sales

on marketing

because large

revenue base

enables smaller

contributions to add

up fast

- Tend to spend larger

percentage of sales

on marketing

- Room in the margins

to afford it, and often

working from smaller

revenue base

Whatever the case, the question needs to be asked: How do I spend my

budget most effectively?

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1 Allocation of B2B Marketing Budgets Marketing Sherpa Study

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1 Allocation of B2B Marketing Budgets Marketing Sherpa Study

Notes: Assuming 5% allocated to

Marketing spend

Projections can be made about expected spend per digital

media channel

How does your marketing budget allocation differ?

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1 Overall Advertising Spend How to budget for Search and Social amongst other marketing initiatives

2 Digital Marketing Industry Trends Expected growth in interactive marketing channels

3 Budgeting for Seasonality Best practices for spending wisely throughout the year

4 Tracking and Budget Reallocation Utilizing attribution management to properly allocate marketing spend

Webinar Agenda

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2 Growth in Search Marketing Spend Digital advertising is projected to grow 26% in the next 5 years

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2 What Factors Enable This Growth? Over the next 5 years, digital marketing will grow because…

• Marketers have larger staffs to work on digital projects than they did previously

• Allows for program expansion

Bigger Digital Marketing Teams

• Compared to years past (recession), marketers now have increased budget to spend on social, mobile, video, etc.

Excitement About Emerging

Media

• Marketers have seen digital marketing efforts generate better results – especially over time

• Everything can be measured

Effectiveness of Digital Media

• Multiple touch points are now required across both traditional and digital media channels

• Linear conversion funnel vs customer defined loop

Changing Customer

Conversion Path

Source: US Interactive Marketing Forecast, 2011 to 2016, Forrester Research

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2 How Will Budgets Shift Moving Forward Comparing both traditional and digital media channels

Source: Dec 2010 US Interactive Marketing Executive Online Survey, Forrester Research

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2 Where Consumers Spend Their Time Less time is being spent with traditional media

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2 Webmarketing123 Annual Survey Majority of digital marketing budget spent on SEO and PPC

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2 Webmarketing123 Annual Survey SEO, PPC, and Social Media budgets will be increasing in 2012

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1 Overall Advertising Spend How to budget for Search and Social amongst other marketing initiatives

2 Digital Marketing Industry Trends Expected growth in interactive marketing channels

3 Budgeting for Seasonality Best practices for spending wisely throughout the year

4 Tracking and Budget Reallocation Utilizing attribution management to properly allocate marketing spend

Webinar Agenda

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3 Budgeting Using Website Analytics Step One: Expand view to a full year of accurate visitor data

• Look for seasonal trends

• Inspect what you expect

Method adopted from: http://searchengineland.com/how-analytics-can-help-

balance-your-annual-search-advertising-budget-90723

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3 Budgeting Using Website Analytics Step Two: Export data into spreadsheet

Method adopted from: http://searchengineland.com/how-analytics-can-help-

balance-your-annual-search-advertising-budget-90723

Adjusted PPC budget for

specific month

Visits from Specific Month

Total Visits for Year

Total Yearly

PPC Budget

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• Keep specific holiday terms separate from your regular keywords

• Separate branded and terms from your generic terms

• Brand and Non-brand terms will have drastically different performance and should be managed appropriately

3 Tips for Seasonal Keyword Management Best practices for accounting for seasonality

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Keywords

• Check historical KW reports to see where you should increase or decrease bids

• Utilize search query reports for keyword expansion and negative keywords

• Google Trends to gauge seasonal lifts rends

• Google Insights for Search to inform geo-targeting

3 Tips for Seasonal Keyword Management Best practices for accounting for seasonality

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• Manage your budgets with bid management and campaign optimizations

• Daily budget caps are a safe guard against over-spending, not to be used for budget management

• Campaigns that reach their limit early in the day run the risk of losing impression and market share when not serving

3 Tips for Seasonal Budget Management Best practices for budgeting for seasonality

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• Don’t manage budgets by pausing high spending ads and keywords

• Pausing keywords can lead to missed conversions

• Conversion rates and quality scores are not affected by bidding to lower positions

• Quality of traffic is based on conversion rates, not volume

3 Tips for Seasonal Budget Management Best practices for budgeting for seasonality

Conversion

Rate

Conversions

Total Clicks

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1 Overall Advertising Spend How to budget for Search and Social amongst other marketing initiatives

2 Digital Marketing Industry Trends Expected growth in interactive marketing channels

3 Budgeting for Seasonality Best practices for spending wisely throughout the year

4 Tracking and Budget Reallocation Utilizing attribution management to properly allocate marketing spend

Webinar Agenda

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Currently, We are not tracking Conversions.

- Ability to tie Ad spend back to sales

- Re-allocate resources to campaigns that generate sales!

4 Tracking and ROI Goal: Track digital media campaigns against other channels

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4 Attribution Management Allocate dollars to marketing channels that drive sales

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• Digital marketing spend is expected to grow to 26% of all advertising spend

within the next 5 years.

• Budget for seasonality by using a combination of historical analytics data

combined with search marketing best practices.

• Use attribution management to properly re-allocate marketing dollars to

channels that perform.

Key Takeaways

Thank You!

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Thank you for your attendance today!

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