MatchCraft Search Summit

Local Search
Brad Petersen
Senior VP Global Business Development
MatchCraft

© 2010, MatchCraft Inc. Proprietary & Confidential. 1

agenda
o introduction
o who are we?
o what is online marketing?
o what is online marketing for SMB / MKB
o what is local search?
o why advertise online?
o (word of mouth is enough!)
o search engine marketing
o how to advertise online
o when to advertise online
o what to measure
o How will I know it is working?
o what to change

introduction
MatchCraft is the leader in automated bidding
technologies. We specialize in solutions for
directories, resellers & agencies that offer online
marketing to small businesses around the world.
Through these partnerships our technology
platform currently manages over 150k merchant
campaigns worldwide. 9 languages, 11 countries


what is online marketing
o loosely advertising on the internet (online)
o various types of advertising
o can be targeted in many ways for many
audiences
o changes rapidly
o market is constantly on the move


Setting the scene
The following terms will be used throughout the presentation today:

Online Advertising: Any form of advertising that can be found on the
internet
SEM: Search Engine Marketing
SEA: Search Engine Advertising - also known as Paid Search or Price
Per Click (PPC) advertising
SEO: Search Engine Optimisation of a website (usually for organic
results)
Organic Results: Free listings within Search Results Page
Search: All of the above, but for the purpose of today when we talk
about ‘Search’ we mean SEA / Paid Search
Proactive Advertising: showing an advertisement to someone actually
looking for a product or service
Reactive Advertising: Showing advertising to everyone on the internet


Marketing Options
There are only two kinds:

Reactive Proactive
(Traditional) (Search)
Billboard Pay Per Click
TV commercial Site Placement
Radio Ad Internet Yellow Pages
Pop up’s Yellow Pages
Banners
Spam e-mail

Forms of Online Advertising


Fragmentation Reigns

Variety of Models Variety of Formats


what does it mean for
the MKB’er?
o many advertising options for your business
o know who to target & when
o learn how to reach your audience
o help is available
o lots of free advice


How to Decide?
o How does one know where and how to
spend marketing dollars.
o Vertical considerations
o Primary goals (Awareness vs. action)


Customers vs. Clicks
The Business Owner’s Goal:
o To acquire more clients/sales as cost effectively
as possible.
o At the end of the day, a marketing budget is
evaluated on how affordably it leads to conversion
of ad Euros to business profit
o Its not on how many people came to your site…
Rather how many of the RIGHT people became
aware of your business


Proactive Marketing
Where to go with ad Euros:
o Statistically, proactive marketing produces the lowest
cost lead, and that lead will convert to your action
(contact, call, buy) more readily that a reactive lead.

What to do with ad dollars in Proactive Marketing:
o The goal is not to get as many clicks as possible.
Rather, it is to mine the most qualified proactive
customers for the least amount of money, keeping the
cost of conversion (cost per lead) as low as possible.


local search
o based on traditional mediums such as: regional
and local newspapers, local T.V. stations eg:
Omroep Brabant, local and community radio
o people want relevant information, services and
businesses from their local area or the area they are
searching for.
o search results are then tailored to where you are
searching from i.e. your physical location or the
area you are searching or researching.


local search…
o Google has made recent adjustments to the
suggestion functionality to accommodate local
search

Search physically done in NYC


local search…
o Google.nl can accommodate local search down to
street level as you can see below

Search physically done in AMS


local search…
o Google.nl can accommodate local search down to
street level & surrounds as you can see below


Reaching Local Audience
o bidding on “hotels” in all of the US might cost you $3 per click
o geo targeting “hotels” to a smaller region decreases your cost
per click significantly

$0.10 per
click

Cost = $3 per click


Exponential complexity
Locations
Hyper-locales

X
Categories
Subcategories

X
Keywords


why advertise online?
o new / more customers
o you can be in complete control of €
o people move house on average every 5
years in NL alone
o people search within a 5 – 10 km radius of
where they live
o because search is becoming more specific
and relevant for small businesses – more
local
o word of mouth is not measurable or
reliable

Introduction to:

Search Engine
Marketing


why Search Engine Marketing?
o you only pay, when the search engine has done its job and
sent you the prospective customer. (Pay Performance)

o as much as 80% of all searches have local intent.

o online activity drives offline conversion

o paid search will account for 49% of Western European
online ad spending by 2012!


what determines where my
site is shown on Google?


the search results page


Organic Listings (SEO)


what impacts organic search
engine ranking?
There are over 100 factors that influence organic search engine
results- however, as far as Google is concerned, many SEO
experts focus on…

Relevance Popularity Authority
(Content) (Links) (Importance)


Search Engine Ranking

Relevance

Popularity

Authority


who appears where and why?


Paid Listings (PPC “the Auction”)


what are the complexities of
running a SEM campaign?


how can I do it?
o firstly you must have a website or landing page for click from the text ad
on Google to go to.
o this example is ClearPainting services at www.clearpainting.nl


How can I do it?
o Secondly you must create an Ad group and choose relevant keywords
for your business, that potential buyers would use to search for your
product or service on a Search Engine,
o Then create a text ad to match the keyword selection.

keyword group
Create a TextAd for the group of Keywords
Clearpainting
Schilder Schilder nodig?
Schildersbedrijf Kwaliteits schilderwerk met
garantie. Ruim 30 jaar ervaring!
Binnen schilder
www.clearpainting.nl
Huis schilder
Buiten schilder
Muurschilder
Muur preparatie
Schilders
Schilderbinnen

Do your research
Search Potential for a painter in NL

Total: 675,938.00


Set your bids
o What is your total budget
o Daily, weekly, monthly?
o How much are you prepared to pay per
click?
o What type of clicks are most important
to your business? Which would provide
you with the highest ROI?


Seek out the sweet spot

.80
.78 .70
.75
.40


Google’s View
.72 max cpc, Available budget,
Quality score (CTR)
.76 .68
.70
.40


Setup and ongoing activities
behind high yielding SEA campaigns
Targeted/Relevant Keywords
o What, how many and how deep
o Long tail
o Negative exclusion abilities
o Matching _broad, exact, phrase
o Customization based on merchant needs
Targeted/Relevant/action oriented Ad-copy
o Multiple ad-copies per ad-group for G to select best performing
o Tied back to landing page
o Tying ad copy to Keywords
Targeted/Relevant Location
o Geo targeting according to client need but limited to API capabilities
Optimization of Keywords
o Removal of underperforming
o Adding or expanding when desired
o Ad-copy
o CPC – changing the bids
Optimization to…
o Clicks
o Budget
o Action
Pacing

Other considerations..

Understanding the micro-economies of how verticals
act in an auction
The forces that effect those micro-economies
Geo-local implications
Mining the opportunities, why its worth your while


How Verticals Categories Act In
An Auction

o Each vertical category has its own individual
economy, for that matter so does every
keyword, determined by…
o Geographic location
o Amount of activity
o Consumer usage (inventory)
o Number of active auction participants (bidders)
o Level of participation (budget)
o Goal of auction participants


o So far pretty obvious and on the
surface the perfect setting for natural
economic dynamics to be in control.
o The Auction is after all designed to be a
self moderating environment
o Lets look at what happens when these
forces unbalanced the auction …


Estimated Average CPC – Position 3 (US)

This data was gathered using up to 5 location specific keywords on Google


Estimated Average CPC – Position 3 (UK)



The Forces At Work Within…
o Vertical players
o Highly concentrated, focus on extracting as much
value from a specific vertical
o Usually approach market on a geo basis, sticking
to highest population centers.
o Horizontal’s (IYP’s, ETC.)
o Vertical strength aligned with core print/IYP
o Individual merchants
o Others (eBay, Amazon, National Brands)


Business Type Distribution – First page
results (equated to 10, UK)

Real Estate Automotive Travel Restaurants Home &
Garden


The Forces At Work Within…
Top Categories By Market:
Northern Central Central Western
European Country European European European
"A" Country "A" Country "B" Country "A"
Builders Lawyers Windows Hotels
Plumbers Painters Roofers Restaurants
Electricians Hotels Movers Funeral homes

Category density is highly variable from country to
country, same level of variation from metro to
metro
Certain Keywords can become “played out”
“The Auction” is not a bottomless pit
“The Auction” has seasonal, geo local, activity
ebbs and flows

The Importance Of Geography



Why an engineering
solution?
o Search Engine Marketing demands an
analytic engineering solution
o The scale and complexity of certain
programs prohibit manual solutions
o Only an adaptive engineered solution
can respond dynamically to the many
changes faced by a complex SEM
program.


Why a customized
solution?


Quality vs. Quantity
o It’s a numbers game where you don’t win by
reaching more numbers than everyone else.
o Business Owner vs. Competition
AND
Business Owner vs. the Ad Platform
o To maximize ROI you must utilize
intelligence and expertise to drive the highest
amount of qualified relevant traffic.


Thank You!!


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