Marketing Sherpa – Search Marketing Benchmark Guide 2008

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Table of Contents
Editor’s note
Highlights from New Research

• Chart I: What is expected Search Spend for 2008
• Chart: How? Search ROI is superior to other tactic
• Chart III: SEM Staffing Difficulty rated by Job Function
• Chart IV: A new way to evaluate click fraud and clicks
• Eyetracking Heatmap – Impact of long URL length on Ad Viewing

Glossary
Chapter 1: The Business of Search – Budgeting, Issues & Outsourcing Search

• Chart 1.1 2006-2008 Search Spending
• Table 1.2: Online advertising – 2006 spending breakdown
• Chart 1.3 – Online Advertising Slowly Overtaking Traditional Tactics
• Chart 1.4: Tactical Spending changes 2008 Google PPC
• Chart 1.5: Tactical Spending changes 2008 – PPC on Top Tier (Yahoo!, MSN, AOL & Ask)
• Chart 1.6: Tactical Spending changes 2008 PPC for 2nd Tier
• Chart 1.7: Tactical spending changes 2008 SEO
• Chart 1.8 – SEO Spending as Percent of Paid Search 2007
• Chart 1.9-To-C SEM Budget Percentages – $50,000 Marketing Budget
• Chart 1.10 B-To-C SEM Budget Percentages – $300,000 Marketing Budget
• Chart 1.11 – B-To-C SEM Budget Percentages: $1.3 Million Marketing Budget
• Chart 1.12-To-C SEM Budget Prices – Budgets over $1 Million
• Chart 1.13:-To-B SEM Budget Percentages – $75,000 Marketing Budget
• Chart 1.14:-To-B SEM Budget Percentages – $250,000 Marketing Budget
• Chart 1.15:-To-B SEM Budget Rates – $1.2 million Marketing Budget
• Chart 1.16: B-To-B SEM Budget Percentages Average Budgets Above $1 Million

SEM: Challenges

• Chart 1.17: Agency Pros Rank SEM Challenges
• Chart 1.18 – Marketers rank SEM Challenges based on Size of Targeted Business
• Chart 1.19: Large Volume and High-Budget Marketers rank SEM Challenges

Special Report: The Challenges of In-House SEM

• Chart 1.20: Why SEM should be In-House
• Chart 1.21: Advertiser Happiness with Paid Plament Service Providers
• Chart 1.22: How Long Did It Take Before In-Are you ready to get house SEM started?
• Chart 1.23: SEM Staffing Difficulty rated by Job Function
• Table 1.24 – Issues in Staffing — Agencies’ View
• Chart 1.25: Staffing challenges compared to other issues in SEM
• Chart 1.26: Many Hats and the Roles Search Marketers
• Table 1.27: Why Search Mobile Marketers (Salaries, Demand)
• Table 1.28: What is the reason? Search Marketers are mobile 2: The Impact Of Experience

Search Marketing Agencies

• Chart 1.29: Paid Use Search Vendors 2006-2007
• Chart 1.30: Use SEO vendors 2006-2007
• Chart 1.31: SEM Vendors 2006.-2007 – Marketers Spending Less Than $10,000
• Chart 1.32: SEM Vendors 2006-2007 – Marketers Spend More Than $25,000
• Table 1.33: Agency pros speak out – Issues & Opportunities in SEM

Click Fraud

• Table 1.34 – Trends in Clickfraud
• Chart 1.35: How many marketers can identify click fraud?
• Chart 1.36: Reported Click Fraud Levels 2006 vs. 2007
• Chart 1.37: Click Fraud: A New View
• Here are some definitions of click fraud metrics used for scoring clicks
• Chart 1.38: Click Fraud Estimates 2006-2007
• Chart 1.39: How marketers can identify click fraud?
• Chart 1.40: How will click fraud be solved? 2006 vs. 2007
• Chart 1.41: How can click fraud be solved? Big vs. Average Spenders

Top Search Advertisers

• Table 1.42: Top Sponsored link Advertisers based on Exposures
• Table 1.43: Sponsored Links Advertising by Industry

Chapter 2: Topics Search

Eyetracking Study Special Report Search Ad Position and Relevance

Heatmaps Explained

Experiment 1: Relevance in Listings

• Relevance of text descriptions
• Heatmap 2.1: Scanning Relevant and Non-Relevant Text Ads
• Heatmap 2.2: Example for scanning relevant listings
• Heatmap 2.3 – Example of Scanning on Other-Relevant Listing
• Non-relevant Listings and Their Impact on Scanning
• Conclusions

Experiment Two: Side-List Ads – The Impact of Relevance & Position

• Heatmap 2.4 Side-Sponsored Ad in the First Position
• Heatmap 2.5: The Side-Third position Sponsored Ad
• Heatmap 2.6: Side-Sponsored Ad in the Fifth Position
• Analyse
• Conclusions

Experiment Three: URL Position Length

• Longitude of URL strings, as they appear in search results
• Heatmap 2.7: Test Listing With Short URL
• Heatmap 2.8 – Test Listing with Long URL
• Heatmap 2.9: Click patterns on Test Listings – Short vs. long URL Strings
• Table 2.10: Time spent with Listings by URL Length
• Heatmap 2.11: The Impact of long URL length on subsequent ad viewing

Similar Findings: PPC Advertising- The Relevance of Relevance

• Case Study 1
• Case Study 2

Business/Vertical Search

• Chart 2.12 Search Buyers of Business Technology Use Engines
• Chart 2.13 Search Technology Buyers Most Commonly Use Engines
• Chart 2.14: Business searchers often can’t locate info via Search
• Notes from The Field: How to Lower the Costs of B-To-B Leads

Contextual advertising

• Chart 2.15: Google AdSense’s Contextual Cost Per Click
• Chart 2.16: Google AdSense Contextual CTR

Local Search & Pay per Call

• Chart 2.17: Tactical spending changes 2008 – Local Search
• Chart 2.18: Local Online Shopping 2002-2007
• Chart 2.19: Ad spend in Local Media, online vs. Traditional
• Notes from the Field – Running ads in Google Local vs. Google Main Search

Mobile Search

• Chart 2.20: Mobile Search Use of the Engine
• Chart 2.21: Mobile use by country
• Chart 2.22: What Mobile Users Do With Their Data Search For
• Table 2.23: Mobile Video Revenue Share 2006 vs. 2007
• Table 2.24: Mobile Browser Market share

SEO & Public Relations

• Table 2.25: Top 25 News Web Sites June 2007.
• Chart 2.26: Strategies for Optimizing Press Releases 2006.-2007
• Chart 2.27: Measuring Success In Optimizing Press Releases 2005-2006

The second Tier of Search Properties

• Chart 2.28: The use of the 2nd-Tier Search Properties Marketing
• Chart 2.29: The use of the 2nd-Tier Search Properties – Average vs. Big Spenders
• Table 2.30: Agency and Marketer Comments about 2nd-Tier Experience
• Table 2.31: Keyword Prices – Comparing the 1st & 2nd Tier
• Chart 2.32: June 2007 Total Searches – 2nd-Tier Search Properties
• Chart 2.33: June 2007 Share of Searches – 2nd-Tier Search Properties
• Chart 2.34: Unique Searchers for June 2007 – 2nd-Tier Search Properties
• Chart 2.35: The June 2007 penetration report – 2nd-Tier Search Properties
• Chart 2.36: Searches per searcher June 2007 – 2nd Tier Search Properties
• Chart 2.37: Sessions per searcher June 2007 – 2nd-Tier Search Properties

Profiles for the 2nd-Tier Engines

• Table 2.38: A Selection Search Property Comparison 1 – Setup & Bidding
• Table 2.39: A Selection Search Properties’ Comparison 2 Ad-Optional Targeting

Profiles of selected 2nd-Tier Search Providers

• Search123 Inc. (division Of ValueClick Inc.
• LookSmart
• Mamma (division Copernic Technologies Inc.
• Superpages.com (division Idearc Inc.
• Lycos
• Business.com
• Yesup (Powered By Clicksor.com, a sister company)
• Epilot (A subsidiary to Local.com)

How We Search Shop

• Table 2.40: The Top 100 U.S. Products/Retails-Oriented Search Terms June 2007
• Chart 2.41: Word count in Search Phrases – U.S.Searchers
• Chart 2.42: The Impact of Complementary Paid and Natural Complimentary Search Listings
• Table 2.43: The Top U.S. Search Terms – IT and Internet
• Table 2.44: The Top U.S. Search Terms – Internet Advertising
• Table 2.45: The Top U.S. Search Terms – Chat and Net Communities
• Chart 2.46: How far do searchers delve into results?
• Chart 2.47: Online Shopping & Product Research are Ordinary
• Chart 4.48: How can online shoppers find new retailers?
• Chart 2.49 SearchTraffic Impact by Product Categories
• Chart 2.50: Referrals to Retail from Search
• Chart 2.51 – Share of Referrals for Specialty Home Categories
• Chart 2.52 – The First Step in Product Research – Electronics Example
• Chart 2.53 – Share of Retail Searches & Clickthrough
• Chart 2.54: Comparison of Shopping Engines Search Agencies Rate ROI
• Chart 2.55: Tactical spending changes 2008 Shopping Search
• Table 2.56: Shopping sites – Feed Attributes
• Table 2.57: Capabilities of Shopping Sites

Special Report: Ranking Toolbars Under the Hood

• Alexa
• Compete Toolbar
• Third-Party Services
• TrustGauge/BrowserAccelerator
• Other Popular Toolbars

Videoamp; Search

• Table 2.58: Market share of top video properties
• Table 2.59: Top U.S. Online Video Properties
• Chart 2.60: What to do after watching online video
• Table 2.61: Selected Video Properties Comparison chart

Profils of selected video sites

• Google Video
• AOL Video
• Yahoo! Video
• AltaVista Video Search
• Blinkx.com
• Everyzing.com (formerly Podzinger.com)
• Pixsy.com
• Truveo (Acquired in January 2006 by AOL)
• YouTube (Purchased in November 2006 by Google Inc.

Chapter 3: Top Search Properties

• Chart 3.1: SEM Agencies View Top Search Properties – 12-Month Outlook
• Chart 3.2: The Top SEM Agencies Search Engines – ROI
• Chart 3.3: Top Rated SEM Agencies Search Engines – Customer Service
• Chart 3.4: The Top SEM Agencies Search Engines – Targeting Tools
• Chart 3.5: The Top SEM Agencies Search Engines – Keyword Suggestion Tools

Top-Tier Search Profiles of Engines

• Google
• Yahoo!
• Microsoft LiveSearch & AdCenter
• Table 3.6. Search Property Comparison 1 – Setup & Bidding
• Table 3.7. Search Properties’ Comparison 2: Ad Targeting Options
• Table 3.8: Top U.S. Search Google Properties 2006 Terms-2007
• Table 3.9: Top U.S. Search Terms – Yahoo! Properties
• Table 3.10: Top U.S. Search Terms – MSN Properties
• Chart 3.11: Total searches for 2005-2007 – Top Five Search Properties
• Chart 3.12: The Share of Searches 2005-2007 – Top Five Search Properties
• Chart 3.13: Unique Searchers 2005-2007 – Top Five Search Properties
• Chart 3.14: The 2005 penetration-2007 – Top Five Search Properties
• Chart 3.15: Searches Per Searcher 2005-2007 – Top Five Search Properties
• Table 3.16 “Lifestage” Demographics of the Top 5 Search Engines – Composition of Searches
• Table 3.17 “Lifestage” Demographics of the Top 5 Search Engines – Composition of Unique Lookers
• Table 3.18: Top 5 Household Income Profiles Search Engines based on the Composition of Searches
• Table 3.19: Profile of the Top 5 Household Incomes Search Engines based on the Composition of Unique Searchers
• Chart 3.20 – Information Workers Prefer Google

Search International Engine Shares

• Chart 3.21: Online language share

Focus on: China & India

• Chart 3.22: The Pace of Asian Internet Use exceeds the World
• Chart 3.23: Baidu Leads, But Google’s Slide Is Over
• Table 3.24: Click fraud is a serious concern in China
• Chart 3.25: Chinese Search Marketers = Small Businesses
• Table 3.26: China’s Top 25 Advertisers, ranked by spending
• Table 3.27: Chinese online advertising by industry sector
• Table 3.28: India’s Best Web Properties
• Table 3.29: Top Sites and Activities in India

International Search Data

• Table 3.30 Search Property Comparison – Australia (Home & Work)
• Table 3.31 Search Property Comparison – Brazil (Home)
• Table 3.32 Search Property Comparison – France (Home & Work)
• Table 3.33 Search Property Comparison – Germany (Home & Work)
• Table 3.34 Search Property Comparison – Italy (Home & Work)
• Table 3.35 Search Property Comparison – Japan (Home).
• Table 3.36 Search Property Comparison – Spain (Home).
• Table 3.37 Search Property Comparison – Switzerland (Home)
• Table 3.38 Search Property Comparison – United Kingdom (Home & Work)

Chapter 4 Search Measurement and Tactics

• Chart 4.1 Search ROI Stacks up – Marketing Tactics compared
• Chart 4.2: How ROI stacks up – Marketers spending over $25,000 per month Search
• Chart 4.3: How ROI stacks up – Marketers spending less than $10,000 per month Search
• Chart 4.4 – SEM Campaigns Test ROI – Agency View
• Chart 4.5: Landing Page Elements and their Impact
• Notes from The Field: How to Increase Conversions As a Print Subscription Publisher By Revamping Search Landing Pages
• Chart 4.6: SEM campaign tests ROI – Agency View by Average Spend of Clients
• Notes from Field: How to Measure Search An innovative SEM scoring system can improve campaign ROI
• Chart 4.7: Targeting Search Users – Tactics rated by Agencies (Average).
• Chart 4.8: Targeting Search Users – Tactics rated by Agencies with an Average Client Spend of $25,000
• Table 4.9: Coping with Rising Keyword Prices – Agency View
• Notes from Field: Improving Search Marketing ROI
• Chart 4.10 – Keyword Research: Tips for Keyword Research

Emerging Capabilities Search

• Chart 4.11 – Emerging Capabilities – What’s in Store Search?

Search Optimizing the Engine

• Chart 4.12: SEO Lift after Six Months of Optimization – Agencies vs. In-House
• Chart 4.13: Technology Marketers Evaluate Site Optimization
• Table 4.14: Key factors in Search Optimization of the Engine
• Chart 4.15: SEO – Easier Said Than Done
• Chart 4.16: Marketers Face Several Obstacles in Implementing SEO Recommendations

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Affiliatesamp; Search

• Chart 4.17: Merchant Policies for Affiliates’ Paid Search Becoming more sophisticated

Internal Search

• Chart 4.18: What are the First Things Consumers Do when They Reach a Retail Store?
• Chart 4.19: Marketers Rate Their Internal Search
• Chart 4.20: Marketers Ranked Internal Search Capabilities
• Notes from the Field: An Eretailer tripled conversions with Internal Search Changes

Chapter 5: Search Benchmark Data

Keyword Prices

• Chart 5.1: CPC of Top 3 Search Engines – Averages 2005-2007
• Chart 5.2: CPC Top 3 – Median price Summary 2006-2007
• Chart 5.3: Cost Per Click Breakdown – Google 2006.-2007
• Chart 5.4: Yahoo! 2006-2007
• Chart 5.5: Cost per click breakdown – MSN 2006 2007
• Chart 5.6: Click Cost: Shopping Comparison Engines 2006.-2007
• Chart 5.7: Cost per Click: 2nd-Tier Search Providers 2006-2007

Keyword prices by marketer type

• Chart 5.8 – CPC – Marketers with in-House Paid SEO
• Chart 5.9: CPC-Marketers with Outsourced Paid SEO
• Chart 5.10 – CPC – Marketers Bidding for More Than 1,000 Keywords
• Chart 5.11: CPC-B-To-C Direct Ecommerce
• Chart 5.12 – CPC – B-To-C Lead Generation
• Chart 5.13: CPC-B-To-B Lead Generation

Keyword Volumes

• Chart 5.14: Breakdown for B-To-C Keyword Buying
• Chart 5.15: Breakdown B-To-B Keyword Buying
• Chart 5.16: Breakdown Keyword Buying by Companies Spending Less Than $10,000 Per Month
• Chart 5.17: Breakdown Keyword Buying by Companies Spending More Than 25.000 USD per Month
• Chart 5.18: Breakdown Keyword Buying – Companies With Outsourced PPC

Conversion rates

• Chart 5.19: Paid Search Conversion rates
• Chart 5.20 Natural Search Conversion rates
• Chart 5.21: Comparison Engine Conversion Rates
• Chart 5.22: In-House vs. outsourced Conversions Rates – PPC
• Chart 5.23-Comparison of House and Outsourced Conversions Rates – SEO

Clickthrough rates

• Chart 5.24: Average Clickthrough Rates 2005-2006
• Chart 5.26:-To-C Clickthrough Rates Top Engines and Shopping Comparators
• Chart 5.27:-To-B Clickthrough rates – Top Engines

Appendix: Demographic data for 2007 Search Marketing Benchmark Survey

• Chart A.01: SEM Agency Responses – Clients’ Monthly Search Spend
• Chart A.02: Marketers Monthly Search Spend
• Chart A.03: Respondents sorted by Primary Product Type
• Chart A.04 – Respondents according to Primary Conversion Type
• Chart A.05 – Respondents according to Primary Customer Type