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     The Latest Trends in
   Internet Marketing 2007
Panelist Introductions

• Andy King, founder, Website Optimization
  & author “Speed Up Your Site”

• Daniel O'Neil, Alchemist & Lead Analyst,
  Pure Visibility

• Abbey Beardslee, Sale Planner,
  MySpace.com/FOX Interactive
Search Engine Marketing
Trends - The Shift to SEO
         Andy King
  websiteoptimization.com
SEM to nearly double by 2011
Why more SEM?


•   Advertising budgets shifting to Net
•   PPC prices rising (Google auto-pilot)
•   More measurable metrics
•   TV, radio, newspapers, yellow pages down
•   More companies entering the market
Shift from offline to online marketing
Shift from Traditional to New Media
Shift from PPC to SEO

• PPC/SEO from 2.4 to 1.1 from 2007 to 2012
• PPC costs rising
  – ~6 times $1+ keywords in Jan. 2007 vs. Jan.
    2006
  – Ave CPK rose 33% each month in Q1 2006
  – Ave CPC rose 55%/month Jan. 2006 to Jan. 2007

  DoubleClick, “DoubleClick Performics 50 – Search Trend Report Q1 2007,”
     (New York: DoubleClick Inc., June 2007), 1, http://www.doubleclick.com/insight/research
     (Nov. 17, 2007).
PPC Costs Rising Over Time




“DoubleClick Performics, “Q1 2007 Search Trends Report,” (DoubleClick, 2007), 2.
http://www.doubleclick.com/insight/pdfs/DoubleclickPerformics50_Q1_2007.pdf.
How to boost ROI?

•   Make ad spend more efficient
•   Optimize PPC campaigns
•   Long term SEO equal to PPC (trend)
•   Optimize everything with web metrics
•   Optimize conversion rates
    – Web site optimizer (Google)
    – A/B/C split testing
    – Test, try, and retest
Search ROI vs. Other Tactics
Measuring Metrics


• 43% of marketers don’t/can’t accurately
  measure ROI from SEO (Jupitermedia, 2007)
• Only 6-15% of companies are fully
  integrated (eMarketer, 2007)
• Basic metrics most used (traffic,impressions)
Web Metrics Integration
Measuring SEM Firms

•    Amount of Web Traffic (58%)
•    Total sales (50%)
•    ROI from search marketing (49%)
•    Search engine ranking (48%)
•    Number of clicks (43%)
•    Return on advertising spend (42%)

Jupiter Research SEM Executive Survey, 2/07
Measuring Meta Tag Usage
Meta tag trends


• Keywords (34.2%) description (31.8%)
  used most
• Title, metadata Title, Subject, and Description
  fields most important for SEO rankings
• 7.4% use Dublin core, less effective for SEO
• Only 1.7% use metadata Title, yet impacts SEO

Zhang, J., and I. Jastram, “A study of the metadata creation behavior of different user groups on the Internet,” Information
    Processing and Management 42 (2006): 1099–1122.
Zhang, J., and A. Dimitroff, “The impact of webpage content characteristics on the webpage visibility in search engine results
    (Part I),” Information Processing & Management 41 (2005): 665–690.
Zhang, J., and A. Dimitroff, “The impact of metadata implementation on the webpage visibility in search engine results
    (Part II),” Information Processing & Management 41 (2005): 691–715.
Search Query Trends




Bogatin, D., “Yahoo: ‘Searches more sophisticated and specific,’” (San Francisco: CNET Networks, Inc., May 18, 2006).
http://blogs.zdnet.com/micro-markets/index.php?p=27 (July 17, 2007).
Pasca, M., “Organizing and Searching the World Wide Web of Facts - Step Two: Harnessing the Wisdom of the Crowds,” WWW 2007,
(Banff, Alberta, Canada, May 8–12, 2007): 101-110. Google statistics.
Oneupweb, “How Keyword Length Affects Conversion Rates,” (Oneupweb, 2005). (accessed June 15, 2007).
How to boost SEO rankings?


•   Fully optimize Title tags (up to 3 keywords)
•   Build backlinks baby
•   Build PageRank (see #2)
•   Use Web 2.0/Social Media
•   Fresh keyword-optimized content
•   Stay out of Google “sandbox”
•   Longer to reach top rankings 6 -> 12 months
Spread of news in Blogistan


• Takes about 1 week for the average
  story to peak in links in the “blogistan”
• Staged release may be more effective
• Blogs and RSS feeds are powerful for
  backlinks
• Press releases guarantee links

    Cohen, E., and B. Krishnamurthy, “A short walk in the
    Blogistan,” Computer Networks 50 (2006): 615–630.
SEM Resources

•   MarketingSherpa.com - research firm
•   SEMPO.org - SEM industry professionals
•   eMetrics.org - marketing conferences
•   FutureNowInc.com -conversion rate optimization
•   SEOMoz.org - ranking factors survey
•   SearchEngineLand.com - Danny Sullivan
•   WebsiteOptimization.com/presentations
Metrics for the Masses -
How improved metrics will redefine
 what we sell and how we sell it!

          Daniel O’Neil
        Pure Visibility Inc.
Metrics and Marketing have
     been uneasy bedfellows

“I know half of my advertising is wasted; I just
don’t know which half.”
                  -- John Wannamaker, ca 1910

  “The time has come when advertising in some
hands has reached the status of science.”
                           -- Claude Hopkins, 1923


           85 years later...
Market Measurement has grown
    explosively thanks to Google Analytics


•   A free tool that allows detailed traffic profiles
    at a level of quality second only to high-cost
    products like Omniture’s SiteCatalyst or
    WebTrends
•   Business-oriented data, not geek-oriented data
•   Can be used to to make non-intrusive inquiries
    into your clients and visitors’ needs.
The short-term trend: analytics
     will be as common as Outlook

•   Terms that are becoming more and more common:
     –   ROI
     –   Cost per Lead
     –   Cost per Conversion
     –   Sales Funnel considerations
     –   “Stickiness”
•   Web marketers that don’t promise metrics -- and
    the ability to explain metrics -- will not do as well
    as those who do.
The long-term trend: Analytics will be used
 to create sustained, detailed user profiles

  Company



  Product Line              Books, some Media    DVD Media, some Movie    Consumer Goods
                            (Deep)               Downloads (Deep)         (Broad, Deep)

  Business Model            Brick and Mortar     Online Subscription      Online Commodity
                            Commodity Purchase   Service                  Purchase

  Knowledge of Customer     Low                  High                     High
  Preference
  Degree of Customer        Low                  High                     Medium
  Feedback

  Number of Customer        Very Low             High                     Medium - High
  actions captured

  Length of Transactional   0-1                  ongoing, changes daily   per login/purchase or
  history                                        and weekly               browse
How will the business model change?

• Increasingly commodities become monetized through
  services. The Amazon and Netflix web properties are services
  that contribute to the sale of commodities.
   - Amazon’s customer retention in 2002 was 60%;
     in 2004 it was 78%.

• Increase in measurable “Micropurchase” business models
   – Subscriptions and Serials
   – Tracked sampling offerings and price-reduced to get data
   – Attribute bundling (enrich what a product is by adding
     reviews, friend recommendation, etc.)
These ideas are not new, but
    they have been slow to grow.

•   Netflix’ model has been mature since about 2003;
    Amazon’s model continues to evolve, but reached
    Netflix’ standard around 2005-2006. Then they
    surpassed it!
•   Traditional merchandising companies have been slow
    to catch up because in order to make it work, a
    measurable, superior SERVICE has to be the core goal
    of any website.
•   It doesn’t have to be “High Tech”, but the vision has
    to be clearly defined and supported by the
    organization
    -The Ann Arbor District Library gets it, but Target doesn’t!
Resources and links


   http://www.purevisibility.com
http://recsys.acm.org/program.html
    http://analytics.google.com
        http://www.aadl.org

Competing on Analytics: The New Science of Winning.
     Davenport, Thomas H.; Harris, Jeanne G.
Branding and Positioning –
Be Something No One Else Is
  Abbey Beardslee, Sale Planner,
  MySpace.com/FOX Interactive
What Is MySpace?

         OUR CORE VALUE
         PROPOSITION:


         MySpace is the most
         effective platform to
         reach the youth market,
         offering unparalleled
         reach and composition
         among trend-setting
         young adults.
How We’ve Grown…

                                                        In just 3 years, MySpace has
                                                        achieved portal-sized reach…
                                                         – 71 MILLION MONTHLY USERS¹
                                                        We’ve become the premier
                                                        destination for young adults…
                                                         – 26 MILLION 18-34 YEAR OLDS
                                                        We’ve developed the highest
                                                        composition of 18-34 year olds
                                                        of all broad reach sites…
                                                         – 37% COMPOSITION
                                                        We provide both scale and coverage
                                                        of the trend-setting young adult
                                                        audience
Source: ¹comScore Media Metrix, June 2007, US
MySpace is Home for Social Networking Users

     SOCIAL NETWORKING
     STARTS HERE…                                         62% of the Facebook
                                                          audience visits MySpace
                                                                                                   60% of the YouTube
                                                                                                   audience visits MySpace

     • 68.4 million monthly users
     • 82% of members are 18+
     • 38% reach of the US online population
     • 45.2 billion page views per month
     • 14.2 billion total minutes per month
     • Average of 207.3 minutes per user per month
                                                                                    68,392,000
     • 58% of Social Networking market share
     • 24.8 average visits per visitor
     • 43% reach against all adults 18-34
                                                                                                 58% of the LinkedIn
     • 37% reach against HH Income 75k+                                                          audience visits MySpace




* Duplication between Social Networking sites not shown
Source: comScore Media Metrix, US data – August 2007
The Most Efficient Way To
               Reach 18-34 Year Olds Online
REACH, COMPOSITION AND CONSUMPTION AMONG 18-34 YEAR OLDS
                                            REACH
                                     Unique Visitors (000)

                     HIGH-REACH, LOW COMP           HIGH-REACH, HIGH COMP




   Size of bubble
   indicates page                                                                   COMPOSITION
   views (MM)                                                                         Percent
                      LOW REACH, LOW COMP            LOW REACH, HIGH COMP




                                             .
                                                                 .          .   .
The Momentum Effect In Action:
            Smart Media + Brand Community = Momentum
                                                                      MYSPACE MEDIA AND MOMENTUM DRIVES
                                                                     6-15X THE IMPACT OF OTHER ONLINE MEDIA
 MySpace Campaign: EA Burnout Band Slam 2                                                                                                 Results: Momentum-Driven ROI*

                                                                                                                                                 "Definitely Will Purchase"


                                                                                                                                350,000                                           ROI:




                                                                                           People Impacted Per $100,000 Spent
                                                                                                                                                                              Extraordinary
                                                                                                                                300,000

                                                                                                                                250,000

                                                                                                                                200,000

                                                                                                                                150,000                  15X
                                                                                                                                100,000

                                                                                                                                 50,000
                                                                                                                                                                  6X

                                                                                                                                     0
  • EA launched an international band competition to                                                                                         Online Advertising           MySpace Advertising
    promote a video game release                                                                                                                                         plus Momentum Effect
  • Winning band’s music is featured in Burn Out Game                                                                                                  Momentum Effect
    plus a Virgin Record Label
  • The brand community encouraged viral pass-along                                                                                                    Advertising Effect
    by allowing users to forward content to friends
                                                                                                                                          *** Close to 7,000 contest submissions!!
  • Standard media was also utilized to drive contest
    awareness and traffic to community




Source: 1NEF study, April 2007, commissioned by MySpace, Isobar and Carat
MySpace Media Is Smart And Effective

                                        HIGHLY TARGETED
MYSPACE MEDIA BENEFITS:
• High-reach—The most efficient way
  to reach 18-34 year olds online            HYPER
                                           TARGETING
• Highly effective—MySpace media
  drives brand awareness
                                          ENTHUSIAST
• High value—Cost-effective relative      TARGETING
  to all broad-reach competitors
• Highly targeted—Segment users         PREMIUM CONTENT

  based on freely expressed passions
                                        USER HOMEPAGE



                                       MYSPACE HOME PAGE


                                          HIGH REACH
VIDEO - Competitive Landscape

Poised for explosive growth, MySpaceTV will be a market-leading video
destination.
This Chart compares “total unique video viewers”

                                           YouTube    MySpace    Yahoo!      AOL       MSN

 Total Unique Viewers (000)                 62,206     47,985    35,024    29,479    24,394

 Videos (000)                            1,715,068    635,036   386,724   184,722   171,155

 Videos per Viewer                             27.6      13.2      11.0       6.3       7.0

 Viewer Penetration                            47.2      36.4      26.6      22.3      18.5

 Share of Videos                             20.5%      7.6%      4.6%      2.2%      2.0%

 Minutes per Viewer                            68.0      17.3      30.1      15.4      17.8
Thank you!




    Abbey Beardslee
abeardslee@myspace.com
Next Month: 12.11.07

Smart Spending - How to Measure the Return on
 Your Marketing Investment

Moderator: Debra Power, Power Marketing
Panelists:
• Archie Sader, Integrated Marketing
  Communications, EMU
• Jon Boyd, The Home Buyer's Agent of Ann
  Arbor
• David Bloom, Optimization Group

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Internet marketing trends 2007

  • 1. Sieu thi dien may Viet Long - www.vietlongplaza.com.vn The Latest Trends in Internet Marketing 2007
  • 2. Panelist Introductions • Andy King, founder, Website Optimization & author “Speed Up Your Site” • Daniel O'Neil, Alchemist & Lead Analyst, Pure Visibility • Abbey Beardslee, Sale Planner, MySpace.com/FOX Interactive
  • 3. Search Engine Marketing Trends - The Shift to SEO Andy King websiteoptimization.com
  • 4. SEM to nearly double by 2011
  • 5. Why more SEM? • Advertising budgets shifting to Net • PPC prices rising (Google auto-pilot) • More measurable metrics • TV, radio, newspapers, yellow pages down • More companies entering the market
  • 6. Shift from offline to online marketing
  • 7. Shift from Traditional to New Media
  • 8. Shift from PPC to SEO • PPC/SEO from 2.4 to 1.1 from 2007 to 2012 • PPC costs rising – ~6 times $1+ keywords in Jan. 2007 vs. Jan. 2006 – Ave CPK rose 33% each month in Q1 2006 – Ave CPC rose 55%/month Jan. 2006 to Jan. 2007 DoubleClick, “DoubleClick Performics 50 – Search Trend Report Q1 2007,” (New York: DoubleClick Inc., June 2007), 1, http://www.doubleclick.com/insight/research (Nov. 17, 2007).
  • 9. PPC Costs Rising Over Time “DoubleClick Performics, “Q1 2007 Search Trends Report,” (DoubleClick, 2007), 2. http://www.doubleclick.com/insight/pdfs/DoubleclickPerformics50_Q1_2007.pdf.
  • 10. How to boost ROI? • Make ad spend more efficient • Optimize PPC campaigns • Long term SEO equal to PPC (trend) • Optimize everything with web metrics • Optimize conversion rates – Web site optimizer (Google) – A/B/C split testing – Test, try, and retest
  • 11. Search ROI vs. Other Tactics
  • 12. Measuring Metrics • 43% of marketers don’t/can’t accurately measure ROI from SEO (Jupitermedia, 2007) • Only 6-15% of companies are fully integrated (eMarketer, 2007) • Basic metrics most used (traffic,impressions)
  • 14. Measuring SEM Firms • Amount of Web Traffic (58%) • Total sales (50%) • ROI from search marketing (49%) • Search engine ranking (48%) • Number of clicks (43%) • Return on advertising spend (42%) Jupiter Research SEM Executive Survey, 2/07
  • 16. Meta tag trends • Keywords (34.2%) description (31.8%) used most • Title, metadata Title, Subject, and Description fields most important for SEO rankings • 7.4% use Dublin core, less effective for SEO • Only 1.7% use metadata Title, yet impacts SEO Zhang, J., and I. Jastram, “A study of the metadata creation behavior of different user groups on the Internet,” Information Processing and Management 42 (2006): 1099–1122. Zhang, J., and A. Dimitroff, “The impact of webpage content characteristics on the webpage visibility in search engine results (Part I),” Information Processing & Management 41 (2005): 665–690. Zhang, J., and A. Dimitroff, “The impact of metadata implementation on the webpage visibility in search engine results (Part II),” Information Processing & Management 41 (2005): 691–715.
  • 17. Search Query Trends Bogatin, D., “Yahoo: ‘Searches more sophisticated and specific,’” (San Francisco: CNET Networks, Inc., May 18, 2006). http://blogs.zdnet.com/micro-markets/index.php?p=27 (July 17, 2007). Pasca, M., “Organizing and Searching the World Wide Web of Facts - Step Two: Harnessing the Wisdom of the Crowds,” WWW 2007, (Banff, Alberta, Canada, May 8–12, 2007): 101-110. Google statistics. Oneupweb, “How Keyword Length Affects Conversion Rates,” (Oneupweb, 2005). (accessed June 15, 2007).
  • 18. How to boost SEO rankings? • Fully optimize Title tags (up to 3 keywords) • Build backlinks baby • Build PageRank (see #2) • Use Web 2.0/Social Media • Fresh keyword-optimized content • Stay out of Google “sandbox” • Longer to reach top rankings 6 -> 12 months
  • 19. Spread of news in Blogistan • Takes about 1 week for the average story to peak in links in the “blogistan” • Staged release may be more effective • Blogs and RSS feeds are powerful for backlinks • Press releases guarantee links Cohen, E., and B. Krishnamurthy, “A short walk in the Blogistan,” Computer Networks 50 (2006): 615–630.
  • 20. SEM Resources • MarketingSherpa.com - research firm • SEMPO.org - SEM industry professionals • eMetrics.org - marketing conferences • FutureNowInc.com -conversion rate optimization • SEOMoz.org - ranking factors survey • SearchEngineLand.com - Danny Sullivan • WebsiteOptimization.com/presentations
  • 21. Metrics for the Masses - How improved metrics will redefine what we sell and how we sell it! Daniel O’Neil Pure Visibility Inc.
  • 22. Metrics and Marketing have been uneasy bedfellows “I know half of my advertising is wasted; I just don’t know which half.” -- John Wannamaker, ca 1910 “The time has come when advertising in some hands has reached the status of science.” -- Claude Hopkins, 1923 85 years later...
  • 23. Market Measurement has grown explosively thanks to Google Analytics • A free tool that allows detailed traffic profiles at a level of quality second only to high-cost products like Omniture’s SiteCatalyst or WebTrends • Business-oriented data, not geek-oriented data • Can be used to to make non-intrusive inquiries into your clients and visitors’ needs.
  • 24. The short-term trend: analytics will be as common as Outlook • Terms that are becoming more and more common: – ROI – Cost per Lead – Cost per Conversion – Sales Funnel considerations – “Stickiness” • Web marketers that don’t promise metrics -- and the ability to explain metrics -- will not do as well as those who do.
  • 25. The long-term trend: Analytics will be used to create sustained, detailed user profiles Company Product Line Books, some Media DVD Media, some Movie Consumer Goods (Deep) Downloads (Deep) (Broad, Deep) Business Model Brick and Mortar Online Subscription Online Commodity Commodity Purchase Service Purchase Knowledge of Customer Low High High Preference Degree of Customer Low High Medium Feedback Number of Customer Very Low High Medium - High actions captured Length of Transactional 0-1 ongoing, changes daily per login/purchase or history and weekly browse
  • 26. How will the business model change? • Increasingly commodities become monetized through services. The Amazon and Netflix web properties are services that contribute to the sale of commodities. - Amazon’s customer retention in 2002 was 60%; in 2004 it was 78%. • Increase in measurable “Micropurchase” business models – Subscriptions and Serials – Tracked sampling offerings and price-reduced to get data – Attribute bundling (enrich what a product is by adding reviews, friend recommendation, etc.)
  • 27. These ideas are not new, but they have been slow to grow. • Netflix’ model has been mature since about 2003; Amazon’s model continues to evolve, but reached Netflix’ standard around 2005-2006. Then they surpassed it! • Traditional merchandising companies have been slow to catch up because in order to make it work, a measurable, superior SERVICE has to be the core goal of any website. • It doesn’t have to be “High Tech”, but the vision has to be clearly defined and supported by the organization -The Ann Arbor District Library gets it, but Target doesn’t!
  • 28. Resources and links http://www.purevisibility.com http://recsys.acm.org/program.html http://analytics.google.com http://www.aadl.org Competing on Analytics: The New Science of Winning. Davenport, Thomas H.; Harris, Jeanne G.
  • 29. Branding and Positioning – Be Something No One Else Is Abbey Beardslee, Sale Planner, MySpace.com/FOX Interactive
  • 30. What Is MySpace? OUR CORE VALUE PROPOSITION: MySpace is the most effective platform to reach the youth market, offering unparalleled reach and composition among trend-setting young adults.
  • 31. How We’ve Grown… In just 3 years, MySpace has achieved portal-sized reach… – 71 MILLION MONTHLY USERS¹ We’ve become the premier destination for young adults… – 26 MILLION 18-34 YEAR OLDS We’ve developed the highest composition of 18-34 year olds of all broad reach sites… – 37% COMPOSITION We provide both scale and coverage of the trend-setting young adult audience Source: ¹comScore Media Metrix, June 2007, US
  • 32. MySpace is Home for Social Networking Users SOCIAL NETWORKING STARTS HERE… 62% of the Facebook audience visits MySpace 60% of the YouTube audience visits MySpace • 68.4 million monthly users • 82% of members are 18+ • 38% reach of the US online population • 45.2 billion page views per month • 14.2 billion total minutes per month • Average of 207.3 minutes per user per month 68,392,000 • 58% of Social Networking market share • 24.8 average visits per visitor • 43% reach against all adults 18-34 58% of the LinkedIn • 37% reach against HH Income 75k+ audience visits MySpace * Duplication between Social Networking sites not shown Source: comScore Media Metrix, US data – August 2007
  • 33. The Most Efficient Way To Reach 18-34 Year Olds Online REACH, COMPOSITION AND CONSUMPTION AMONG 18-34 YEAR OLDS REACH Unique Visitors (000) HIGH-REACH, LOW COMP HIGH-REACH, HIGH COMP Size of bubble indicates page COMPOSITION views (MM) Percent LOW REACH, LOW COMP LOW REACH, HIGH COMP . . . .
  • 34. The Momentum Effect In Action: Smart Media + Brand Community = Momentum MYSPACE MEDIA AND MOMENTUM DRIVES 6-15X THE IMPACT OF OTHER ONLINE MEDIA MySpace Campaign: EA Burnout Band Slam 2 Results: Momentum-Driven ROI* "Definitely Will Purchase" 350,000 ROI: People Impacted Per $100,000 Spent Extraordinary 300,000 250,000 200,000 150,000 15X 100,000 50,000 6X 0 • EA launched an international band competition to Online Advertising MySpace Advertising promote a video game release plus Momentum Effect • Winning band’s music is featured in Burn Out Game Momentum Effect plus a Virgin Record Label • The brand community encouraged viral pass-along Advertising Effect by allowing users to forward content to friends *** Close to 7,000 contest submissions!! • Standard media was also utilized to drive contest awareness and traffic to community Source: 1NEF study, April 2007, commissioned by MySpace, Isobar and Carat
  • 35. MySpace Media Is Smart And Effective HIGHLY TARGETED MYSPACE MEDIA BENEFITS: • High-reach—The most efficient way to reach 18-34 year olds online HYPER TARGETING • Highly effective—MySpace media drives brand awareness ENTHUSIAST • High value—Cost-effective relative TARGETING to all broad-reach competitors • Highly targeted—Segment users PREMIUM CONTENT based on freely expressed passions USER HOMEPAGE MYSPACE HOME PAGE HIGH REACH
  • 36. VIDEO - Competitive Landscape Poised for explosive growth, MySpaceTV will be a market-leading video destination. This Chart compares “total unique video viewers” YouTube MySpace Yahoo! AOL MSN Total Unique Viewers (000) 62,206 47,985 35,024 29,479 24,394 Videos (000) 1,715,068 635,036 386,724 184,722 171,155 Videos per Viewer 27.6 13.2 11.0 6.3 7.0 Viewer Penetration 47.2 36.4 26.6 22.3 18.5 Share of Videos 20.5% 7.6% 4.6% 2.2% 2.0% Minutes per Viewer 68.0 17.3 30.1 15.4 17.8
  • 37. Thank you! Abbey Beardslee abeardslee@myspace.com
  • 38. Next Month: 12.11.07 Smart Spending - How to Measure the Return on Your Marketing Investment Moderator: Debra Power, Power Marketing Panelists: • Archie Sader, Integrated Marketing Communications, EMU • Jon Boyd, The Home Buyer's Agent of Ann Arbor • David Bloom, Optimization Group