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Your Global Virtual Sales Force

US Department of Commerce

May 11, 2011

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15 year track record in a 15 year old industry

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The Search Engines are the new OS

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How many computers are there?

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The Web from a

marketing standpoint:

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Search result #2,123,298

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The Online Marketing Pyramid

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Most important activity online (#1email?)

•  Search is the #2 application (?) on the web; #3 is research. SM? •  20-25% of searches: local. •  50+% of visitors: International! •  Only 30 - 50% of results are “relevant”: An opportunity!

Source: Google / Yahoo Research, Pew Internet & American Life. comScore Media Metrix "Part of having a say is letting people find what you say”

Google alone: 37 billion queries per

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Your customer has changed

 

Dramatic consequences of a global

behavioral change:

a fast searchbox

 

Web sites / content that is not visible

for the SEs are rendered invisible for

potential customers. Chrome.

•  Your #1Interface: SERPs

 

Your

SERPs

will act as your

most cost

effective marketing channel

: spiders

will drive targeted customers as they

search for your products /services

•  Both B2B&B2C: how to stand out?

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That’s where your customers are: the SERPs

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Leapfrogging competitors

As this inequality will balance sooner or later, media spending on online advertising will increase dramatically

Source: TNS Media Intelligence

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Advertising Spending Growth

“Anywhere Economy” 87% of marketers have plans to increase

their online presence in 2011

Force accelerator

Inertia vs. Supercharged

Source: Deutsche Bank / Mediapost & Merrill Lynch

Targeted media grows 3 – 20 times faster than generic.

2002 – 2010: a clear break between targeted and mass media. Small biz can afford National / Global reach!

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Presentation Agenda

 

Context we live in: SEO -

best marketing

action

(after a face to face meeting*)

  The Basics:

•  What is a Search Engine?

•  Search Engine Optimization (SEO)

•  Social Media Optimization (SOM) Sensitive issue nowadays.

•  Pay Per Click Marketing (PPC, SEM, CPC, sponsored links, search engine advertising)

•  Social Media Optimization (SMO or SOM, sponsored links, search engine advertising)

  Global Web usage trends –Interconnect

  A brief case study

Source: Omniture White Paper

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SE-s: the answer to “sensory overload”

Source: SAS Institute

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Evolution: “Garbage production”?

1) AOL – email

15 years: 277 Mn users. Fast, Relevant, requires attention

2) Google-SEs

10 years: 350 Mn users first Social Media!

my question, must be true

3) Facebook-Social

5 years: 500 Mn users (now 6) real

time, effortless, always on

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Marketers are

ceding control to Customers

 

“Consumer-initiated marketing"

on the

consumers' timeline, not the advertisers'

  The corporate Web site is less relevant than it used to be / member-created content / SOM

  Brands are built as a dialogue: Consumers create a brand, not ad agencies. Web presence is a dialogue

  Reverse Broadcasting: marketing is on defense

 

Personalization.

Post-advertising.

Attention

erosion. Fragmentation.

  Decisions are made about you and your products before the Web site is even visited

  More people on SM than emailing!

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E-Commerce Sales

2010 Metrics

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Trends & Market Size

You are already global…

How to maximize search dominance?

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Go

International!

750Mn+ people

Source: Comscore

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Use it for what it was invented for:

  Google currently supports more than 40 languages in

nearly 200 countries for keyword targeted campaigns.

  Hebrew   Hindi   Hungarian   Icelandic   Indonesian   Latvian   Polish   Portuguese   Romanian   Russian   Serbian   Slovak   Slovenian   Tagalog   Turkish   Ukrainian   Urdu   Vietnamese   English   Chinese (simplified)   Chinese (traditional)   Danish   Dutch   Finnish   French   German   Italian   Japanese   Korean   Norwegian   Spanish   Swedish   Arabic   Bulgarian   Catalan   Croatian   Czech   Danish   Estonian   Greek

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The “big rush” to get online

Source: Internet World Stats – www.internetworldstats.com/stats.htm 578 385 248 139 51 42 20 Asia Europe North America Latin America / Carribean Africa Middle East Oceania / Australia

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Most of 1.5 Bn i-users are in Asia

Source: Internet World Stats – www.internetworldstats.com/stats.htm

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World Internet penetration

Source: Internet World Stats – www.internetworldstats.com/stats.htm

• 60% of 100 MN Twitter users are overseas

• Facebook: 100MN US, 500MN overseas

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25 Source: comScore Custom Analysis

Google’s Reach

Total Unique Visitors

Google (search) 567M Yahoo (search) 239M BING (MSN) (search) 178M Ask network 128M Europe: 91% Latin America: 92% Asia Pacific: 88%

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Your #1 Marketing Channel

Search Engine Optimization (SEO)

& Search Engine Marketing (SEM)

& Social Media Optimization (SMO)

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What is a SE? – a database

Brain Function of the web

 

Crawler

(Spider, bot)

  Visits visible webpages   Follows links

  Determines relevance of pages as it copies

them

 

Index

  Hierarchy of results, based on relevance

 

Algorithm

  The dynamic “engine” of results   This is how SEs compete

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How 70-87% of clicks are delivered

Advertisements

Organic, natural results

Source: Mediapost / Jupiter Research; ROI Research

Natural, organic, editorial and commercial- advertising links

60% of the users are unaware of the distinction. Search accounts for

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Search Engine Optimization

 

Third party validation -Your Goal

  Increase your Revenues, utilizing the web as

your most targeted sales channel.

  Lower Customer Acquisition Costs.

  Increase Highly-Targeted Site Traffic.

  Increase Purchase/Conversion Ratios.

  Increase Web Visibility and Online Brand

Recognition.

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What is Search Engine Optimization?

  Status quo baseline report sets the groundwork for the

campaign. It allows a reference point for results reporting.

  Extensive keyword analysis via a suite of keyword analytical

tools – mission critical.

  Page Level Optimization involves creating unique, keyword

rich html tags and titles designed to increase keyword relevance.

  Designed for optimal results while minimizing the risk of

violating major search engine rules.

  It is done by techies sitting in dark rooms: marketers

speak a different language. It is an opportunity to dominate!

  Link Popularity Building. The rules of engagement are

dictated by the search engines. Don’t break those rules: the penalty is huge. BMW.de!

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Typical optimization experience

 

Migration of hundreds of keywords to top 30

positions on the web’s major search engines.

 

10x, or greater, increase in Search Engine

derived traffic.

 

Increased purchase / conversion ratios.

 

ROI Focused Efforts = Increased

Revenues.

 

Recession-resistant marketing

”A gift that keeps on giving”.

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Dominant trend: Search Related Ads

Advertisements

Commercially available results next to the natural ones – 1 out of 6 referrals comes from ads

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PPC Marketing: 95% Google, 60% Yahoo

 

Crossroads of

Brand Communication

and

Direct Marketing.

 

Second best ROI (industry specific).

 

Advantage: it is immediate

.

 

Bidding process can be much less expensive

when done with experience (Dutch auctions,

game theory to maximize returns).

 

Testing is important:

Dynamic titles

,

multiple creatives.

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Compare SEO to PPC

SEO

Free, unpredictable, unbiased, difficult to achieve.

  PROS

  Low costs (although front loaded).

  Results are more visible and more relevant.

  Trusted, independently verified, unbiased by an

objective third-party.

  Provides a steady stream of traffic over time.

  One time costs are frontloaded; once pages are

optimized for organic search, low ongoing maintenance fees make it cost-efficient.

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Compare SEO to PPC

 

CONS

  It is difficult to do. Engine requirements can be

at odds with site design and architecture.

  Organic results can be unfocused.

  No control over specifics (which terms, how

well they get ranked).

  Relatively low control over your listing copy.

Longer time horizon.

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Compare SEO to PPC

(Continued)

 

PPC

  Controlled, planned, every click costs money.   PROS

  Easy to do if you are willing to bid high.   Allows planning traffic = sales forecast

using appropriate metrics.

  Opportunity for short term sales campaigns,

promotional fares etc.

  Can boost traffic significantly on a short

notice.

  Completely customized creative to meet the

needs of users.

  No risk. Safe all the way.

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Compare SEO to PPC

(Continued)

 

CONS

  It can be expensive (varies from moderate to

high costs).

  Certain segments of online audience are not

excited about commercial messages.

  Click fraud (1 to 30%). Issue or non-issue?   Trojan programs imitating legitimate Google

ads on sites.

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SOM:

Control the Noise / Buzz

  Extension of your Customer Service Communication and Direct Marketing.

  Cross-fertilizing platforms spread user

generated content (Geo- and industry specific:

YouTube / Facebook / Twitter / LinkedIn).

  Same rules, chaotic environment: Social sucks

up resources quickly because it is addictive.

  Sentiment Analysis / Actionable data / KA (!)

  Most intimate engagement / complaints vs. appreciation ratio

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A Case study

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Their website on top…

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The Results: a vibrant presence

 

magicalcuzco.com (0 – 300 top)

 

Pay Per Click - success

 

Social Media Presence

 

Two new product lines (Culinary + Spiritual)

Source: ActiveMedia Reports,

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The Strength of Networks

As the number of

the nodes increases, the full strength of the network

increases more rapidly.

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Disruptive Technology

Online Reputation Management: Control your digital footprint – Define your personal brand Explosive results

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Thank you for your attention

Laszlo Horvath

laszlo@activemedia.com

Skype: Calllaszlo

+1.703.757.9195

References

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