However, the one area that I felt was not discussed, or written about, was HOW these people are searching. In addition to wanting to know WHAT they’re searching for, as Search Marketer, I want to know how they’re navigating the landscape of a search results page, and any other nugget of data that I can get my hands on. Fortunately for my company, I was able to knock on the door of our trusted in-house PhD and VP of Analytics to see what tid-bits of info he could dig up for me so I can share with the rest of you.

Top-Line Numbers
Over 92 days, a total of 36,389,629 individual searches were conducted; averaging about 395,539 searches per day. Of the 36+ million searches conducted, only 19,442,629 clicks were registered; 211,333 per day. This equates to roughly a 53% click-thru rate. Considering that most people refine their searches as they move their way through their search/research process, it’s interesting to note that AOL results are populated by Google. Curiosity is peaked as to the reasons why the “success” rate of a given search, or clicks, is only 53%.

Should we interpret this as that a little more than a half of all searches are successful in producing relevant results for a searcher to click? Interesting concept seeing as Google is touted as the most relevant results. However, relevancy is in the mind of the searcher; and in the search box too. Depending on the searcher mindset, time of day, at work or at home, ancillary distractions, etc, it’s a random cornucopia of reasons as to why a little more that half of a searchers produce a click on a search listings, take your pick.

However, as a search marketer, inquiring minds want to know WHY 47% of all searches didn’t result in someone clicking on a search listing (paid or organic). First reaction might be that the title and descriptions didn’t clearly communicate the value proposition to the searcher as to why they should click on a listing. Or, did the copy associated with the paid search ads not convey the right message? Much of this might have to do with poor Search management stemming from generic copy, ill-advised match-typing, improper bid management practices, or poor SEO best practices.

So Where are Users Clicking?
Of those 53% of clicks, we were curious to find out where users were clicking on a search result page. We found that approximately 75% of clicks were in search positions 6 or higher (1-6), and approximately 54% of clicks occur in positions 2 or higher (1st or 2nd position). As a Search Marketer, these are key statistics for us in determining a multitude of Search strategies such as bidding strategies, keyword cost thresholds, and SEO tactics and recommendations.

With over 75% of clicks occurring on positions 6 and higher, the importance of our work to our clients becomes that much more important. The fickleness of searchers and their behaviors and patterns affects how we think, plan, strategize, budget, and optimize every part of a Search campaign. If your Search marketing agency is not thinking of your campaign in this way, time to make a change.

While the debacle of the data leak might be a heavy PR crisis nightmare for AOL, it should be a blessing for the Search Marketing community. Yes, we may take pleasure in the oddness and obscurity of the actual searchers, but take heed in the “how,” and understand that this small sub-set of data could have a large impact on your Search efforts.

But what about bridging the gap between online and offline? Research shows that there is a distinct connection between online research and offline buying; however the methods and metrics for attributing online Search to an offline action can be somewhat cloudy. Retailers do understand that many of their customers use multiple channels throughout the sales process, yet marketers are trying to provide a sound measurement for crediting an offline sale or contact through online communication via Search.

Last month we focused on new customer acquisition, and how Search is used to fulfill the role of brining in site traffic with the end goal of converting a visitor to a buyer. This article will focus on cross-channel strategies that work together to form a tighter relationship between online and offline marketing.

Shop Online, Buy Offline, Vice Versa
With many online stores having an offline presence, shoppers have the ability to conduct extensive online research, but make the purchase cross-channel in the actual store. Forrester Research estimates that 55% of US online consumers have cross-channel shopped, which equates to at least 40 million consumers. These shoppers are a gold mine for retailers — they are young, affluent, and have a higher spend amount than those who have not cross-channel shopped. As these shoppers crossed over from online, they spent more than $125 billion in stores in 2005, a 23% increase since 2004 (Forrester Research, 2006).

Though this population of consumers is wealthier and more educated, they are by nature a price-conscious bunch, using the Internet as means to find the best deal. Cross-channel shoppers have little retailer loyalty — they are not reluctant to switch stores, just as they are not reluctant to switch channels; however, these consumers are just as likely to buy offline as they are to make a purchase online. In fact, Forrester found that 65% of cross-channel shoppers have made a purchase online in the past 3 months.

Also of interest is this segment’s willingness to do the exact opposite — research offline and purchase online. Forrester found that 54% of consumers who have researched a product online and bought offline have also researched in-store but made the purchase online. The fact that these two channels are working together to fulfill the customer’s need is important — for it creates an opportunity for retailers to invest in multi-channel marketing strategies.

So what’s the tie that binds? Keywords, searching patterns and behaviors, and ad copy. All of these factors combined can influence the outcome of your Search campaign. Ensuring that a retailer’s Web site and products are in front of these consumers is a challenge that can be met with Search. Whether the purchase is made offline or directly online, the first step in the purchase funnel is consumer awareness. Without a strong presence in the major search engines such as Google, Yahoo, and MSN, retailers and manufacturers may risk losing these shoppers during the critical research phase which could lead to a lack of consideration during the purchasing phase.

Each industry has its short-term highs and lows, but looking at the big picture, both are experiencing steady growth. To ensure that online retailers keep stride with Search, they must be aware of the factors affecting their industry and capitalize on opportunities when they arise.

This is the first in a series of articles that discussed retail and search Marketing; the highs and lows, ins and outs, and general rules of engagement for executing effective search strategies to help connect and engage with consumers online.

The Upside
With immediate sales as the foremost goal for 90% of online retailers, JupiterResearch estimates this year online retail sales will reach $95 billion, comprising only 5% of the $2.1 trillion U.S. retail market, which represents an 18% increase since 2005. The marketing dollars that retailers are investing online exemplify the success these companies are achieving on the Web. On average, retail marketers spend $148,900 on search marketing, 22% more than overall online marketers do (JupiterResearch, Retail Marketing, 2006). These marketers also buy 63% more keywords in attempt to dominant the paid listings, which is a favored strategy of retail marketers.

Unlike many online marketers with large budgets, retailers are more likely to use an agency to manage their search efforts instead of relying on free tools offered by the search engines. The complexities and dynamics of managing a search campaign for a retailer requires not only proprietary tools and technologies to scale the campaign, but also breadth, depth, and knowledge on how to maneuver through the landscape to maximize efficiencies through other forms of search, such as Search Engine Optimization.

The Downside
Despite this ideal match up of search and online retail, there are extraneous forces that have the potential to hinder the effectiveness of Search for these marketers. For example, the amount of internet users and online shoppers entering the e-commerce space are both experiencing single digit growth, while online retail sales growth is in the double digits (eMarketer, 2006).

This uneven growth rate represents a steady maturation of the online retail market, and is something that current players must deal with now to ensure success, both present and in the future. As competition increases, many retailers will be forced to compete for an audience that is experienced with online shopping, knowledgeable about researching online and finding the best deals, and who may have higher expectations for service and support.

Much of the concern of today’s online retailers is that the strategies employed are evident of a “here and now” philosophy, as opposed to a proactive, forward-thinking mentality. Retailers currently focus on increasing bid prices and adding keywords to their campaigns to increase clicks, rather than optimizing landing pages, ad copy, or integrating SEO into their site (JupiterResearch, Retail Marketing, 2006).

With this type of approach, the entire industry is coming close to hitting a wall with keyword bid prices, and we’re now seeing an inverted pattern on the cost of acquiring a new visitor to the ROI received on the back end. This is a challenge across the entire industry, and manifests itself in the unsophisticated approach and lack of solid technology to manage campaigns of this size and scope.

With a majority of retailers adopting this “spend more, buy more attitude,” we’re seeing many retailers seeking to find alternative ways to appear in the search results with a more cost-effective approach, a la SEO.

According to eMarketer, the consumer packaged goods (CPG) industry is projected to spend over $470 million on Internet advertising in 2006. Companies such as P&G and Kimberly Clark are pushing the boundaries on how to effectively communicate with their audience, far beyond the everyday usage of their products.

Communication is Key
As a CPG marketer, how you communicate with your audience on that one to one, relationship level will lead to a longer lasting emotional impact. At the end of the day, as marketers, we want to provide a meaningful engagement or experience, for the consumer, something that brings them out of the realm of just “brand X user” to a point in which they are “brand X participant.”

If you have reached this point, you have gone far beyond brand loyalty, and into an area in which you are actively having a conversation with the consumer, and they have brought you into their home not only as an everyday “product”, but as part of their “lifestyle,” or part of the affinity groups in which they deem important to them personally.

The key to effectively communicating not only brand value, but understanding of your audience is trust. Women rule the roost when it comes to purchasing power, not only in the household, but also online. If you can make an impact in conveying that you care about your audience, building the one-to-one relationship and conversation with them, then ultimately it will produce value to you in the long run; whether it be through increase product revenues, site traffic or a willingness, as a consumer, to share information with you through registering on your site to be communicated with via email.

Building Relationships Online
It goes without saying that P&G, the largest CPG manufacture, is undoubtedly a huge supporter of the Internet, and has substantially increased their spending through various online channels, including Search Marketing. Building a relationship with your consumers goes beyond creating a product website to communicate your brands attributes.

We all know what toilet paper is for, and why it should be soft. Going far beyond product descriptions, marketers are creating destination, sites, a place for the consumer to interact one on one with their brands. CPG sites have come a long way over the years and have incorporated various elements such as games, sweepstakes, promotions, video, blogs, message boards, user generated content, coupons, newsletters, as well as a wide variety of other dynamic content that keeps visitors coming back.

The lines between online and offline are blurring. Just the other day I happened to open a new box of Bounce dryer sheets and came across a game piece that directed me to BounceEverywhere.com where I could register for a $5,000 wardrobe makeover; not that I needed it, the stylish person that I am, but $5,000 is a nice chunk of change. Um, no-brainer.

But here’s the funny thing, I actually took the game piece over to my laptop to register on the site, totally forgetting to switch out my laundry from the washer to the dryer. Yes, I did go back and take care of my laundry, but my actions made me sit back and think about how seamless the relationship is, and how easily Bounce got my information; which, of course, is what they wanted from me in the first place.

Other neat features on the BounceEverywhere.com site included a co-promotion with Curves, style ideas from Philip Bloch, Message Boards, a Media Room where they house all of their commercials, as well as a section dedicated to the usage of dryer sheets in other areas of the home.

- Online search in the U.S. increased 39% in January to 5.7 billion searches conducted, up from 4.1 billion searches in the year-earlier period, according to Nielsen//NetRatings.
-$5 billion was spent on Search in 2005, with projections up to $10 billion by 2009 (eMarketer)
-Over the next five years, Piper Jaffray estimates the paid search industry to grow at a 37-percent CAGR [compound annual growth rate] to more than $33 billion in 2010.

While the numbers may be conflicting across these sources, there is little room for doubt that this industry is at all stagnant. In fact, no other industry has such staggering growth projections such as Search; as noted in today’s eMarketer report.

With steps being taken by the major players such as Google, Yahoo and AOL to integrate video and rich media into Search, forecasts will more than likely be adjusted to account for this growing niche in Search. By the way, has anyone been on the HBO site lately? You can actually click on map that shows you all the action from Season 5 of the Sopranos, mapped to location with a link to view the video. Brilliant marketing tactic for the final season, and yep, you guessed it, a synergistic integration of the Google Maps feature coupled with Soprano’s video clips (http://www.hbo.com/sopranos/map/).

Depending on whose numbers you listen to, there were somewhere between 5,500 — 6,500 attendees at last week’s Search Engine Strategies Conference in NYC. The exhibit hall was packed with attendees yearning to learn more about Search, or looking to outsource because they’ve hit a point in which they can’t scale their campaigns. Marketers are hungry to grow their business, and they know for a fact that Search is the place to turn.

Geez…I remember the days when we had to fight our way to the Interactive table just to describe what the heck Search Engine Optimization was. And to be honest, in some cases, we still do.

A dwindling industry?
Nope, no way. I would say, however, that we are a more mature, methodical, statistical and metrics driven industry. Accountability is key here folks, and with that comes a precise planning, mapping, and strategic role that we are all held responsible for due to the fact that you can track down to the minutia. Search works, and we’re spending more, but we’re spending more in the RIGHT places.

Advanced analytics allow smart Search Marketers the ability to track down to the keyword level to allow for sophisticated bidding strategies to have a tighter control over budget, ad placement, network distribution, demographic targeting, creative, and landing page testing.

All of these tactics and strategies provide a breeding ground for incremental spending due to the fact that you can spend more to get in front of the right visitor. And most marketers are willing to assign dollar values to each target audience for their products and services, based on click to conversion metrics for their pre-defined market.

Why is Search Increasing?
So if we’re saying that Search isn’t on the decline, then just exactly why is it increasing? Well, as mentioned above, Search Marketers that have backgrounds in data mining and analytics are one step ahead in the building, mapping, and planning higher-performing Search campaigns for their clients. For example, analyzing keyword, click and conversion stats based on past data allows our company to build a predictive model to forecast budget to ROI, and shift funds to those Search campaigns that performed at their peak last season to ensure that those ads are “always on.”

Additionally, the search engines themselves have found ways to improve their products made available to marketers that not only cover the direct marketing aspect of Search, but also to provide Brand Marketers with opportunities to generate awareness, interest, and purchase. Contextual advertising, while still in its infancy, is offered on most major engines as an additional platform to engage visitors as they read content that is related to a particular brand, product, or category.

Other uses for Search?
Search isn’t only for direct marketing, and many brand marketers have certainly taken notice. For most of our CPG clients, we plan the year in advance based on various promotions, product launches, couponing, sales, offline advertising, and local support through Search Marketing. Piggy-backing off of their more traditional methods of advertising, we find that market saturation at every level, even in the Search results, provides for consistent messaging, awareness and recognition across all levels.

Is your brand under attack? Consider this classic, recent example: I just moved to NYC a few weeks back and was looking for furniture. Naturally, I turned to my trusty search engine, Google, and typed in “Macys furniture,” just to see what they offered. Low and behold, there were two negative complaints about Macy’s furniture in positions #2 and #4. Guess where I DIDN’T buy my furniture?

Every brand needs to be on the defensive, especially within the search results. More on this topic to come.

At the end of the day, Search has become synonymous with everyday life. I can’t even count how many times I’ve heard the word Google used as a noun, adjective, and verb in pop culture; on the radio, in TV shows and in movies. Whether you search via your PC, laptop, PDA, or cell phone, Search is engrained in our behaviors. The growth rate of Paid Search adoption might slow down, but we certainly are no where close to throwing in the towel!

Is this a good or bad thing? Let’s review:

The Advantages
One can look at this move as a way to standardize text length across multiple Paid Search platforms. Google and MSN have chosen the shorter length, and with the Yahoo move to a similar character length, the homogenization of these programs is underway. Marketers may have an easier time managing their text ads; however, this might not be the scenario in every campaign; see Disadvantages.

Search marketers that have homed in on their sweet spot with consumers using Google’s AdWords program could breathe easily with the knowledge that they can transition their current ad text in their Google program over to Yahoo. After rigorous rounds of copy testing, marketers have exhausted what works and what does not work, given the character limitations within Google’s system. However, as mentioned above, transferring Google copy directly over to Yahoo might work in the short term to avoid any truncation in ad copy.

The Disadvantages
So, what are the disadvantages? For one, it’s important to understand that Google’s and Yahoo’s audiences are different, and that ad copy created on Google might not work at its peak within Yahoo. In instances such as these, using a Search firm knowledgeable in understanding these engines idiosyncrasies, and what creative works best when targeted to the Yahoo audience.

Another point to keep in mind is that limitations on text do severely restrict the creativity, call to action, promotional nature, location, or offline action within these ads. I happened to stumble across a discussion board that talked about a test in which Google was conducting on a longer version of their copy. Here’s a screen shot of what was witnessed:

By comparison, here’s a screen shot from a Yahoo search for New York weather:

Upon fact-checking with the friendly folks over at Google, I was told that this test, more or less, has been put on hold. However, what I find to be interesting is that if Google wanted to test it in the first place, there is definitely some validity to the longer creative copy model that allows advertisers to pre-qualify at a more finite level prior to the click occurring. In addition, who wouldn’t want to have this type of creative control? They have this ability in display advertising, why not search?

In my opinion, testing various character lengths would greatly contribute to the overall effectiveness of your Search campaign. We in this industry have been preaching advertiser control for years now. This is just another area in a long laundry-list of wants and needs in which creating, testing and optimizing will provide an avenue for advertisers to have more control over creativity and bottom line results.
Do you agree to text ad cropping? What are your thoughts?

If you’re like me, you’ve taken to blissfully glazing over every Google article, thinking, “It just can’t possibly get any bigger than this.” But then you realize, oh yes it can. And it will. In 2005 alone, Google introduced updates to their AdWords and AdSense pay-per-click system, launched Google Analytics, launched their API, Google News, Google Maps, Google Talk, Google Satellite, Personalized Search, Google Base, IPO heaven and a $127 billion market cap. Oh, and by the way, they bought a stake in AOL, too.

How did they do it? Simple: Innovative technology.

When I first started out in this industry, Google was just a tiny ripple in the big Search ocean, dominated by the likes of AltaVista, Excite and Lycos. I recently pulled up a press release from August 1999 and found the following quote:

“Our mission is to provide the best search experience on the web,” added Sergey Brin, Google president and co-founder. “Everything we do is focused on delivering the highest quality search results through significant advancements in interface design, relevancy, and scalability.”

Even in 1999, their mission was clear and concise: to provide the best search experience on the Web. With their clean and simplistic design, searchers gravitated toward Google for what it was, a pure-play search engine without the ancillary messaging suffocating the reasons for which visitors came to the site in the first place. And time and time again they achieved better results than their peers. Their methodology for spidering, scanning, indexing and ranking results always produced the most relevant results compared to the competition. In fact, I’d credit Google with our lack of attention span when it comes to search. We EXPECT the RIGHT results to be at the top of the page—and that’s because of Google. Their technology far surpassed the likes of the big competition at the time, and within a short while, market share eroded and once faithful followers of the old engine regime migrated over to the bigger, faster, more relevant search engine: Google.

But here’s the curious thing. In the process of building their reputation as the search engine of record, Google also built much more. When I think of Google these days, frankly, I don’t think of them as a search engine. I think of them as a technology company using search as a conduit to simplify life—to categorize, classify and provide the world with an easier way of finding information. Every other search company to date has failed to provide this as a means to an ever-changing lifestyle. And that is why Google continues to dominate.

I once read that technology is a great equalizer, but I find that it’s just as true that it’s a great divider, as well. Those companies that fail to grasp what technology can do will be forced to constantly play catch-up, or worse, become extinct. Google was founded on the basic fundamentals of innovative technology, and we see this is every application that they have launched. Look at the products released in this year alone and you’ll see that it’s true.

Google is an incubator of innovative technology backed by a solid brand. It will be interesting to see how Google matures over the next 12 months and what roads that they take to continue building their empire. Whether it is through portal growth like MSN or Yahoo, software application development like Microsoft, or through an emerging marketplace such as eBay, rest assured that we will be in for another Google-packed, press release filled year.

As much as I cringe when I hear the “got burned” response, the “in-house, but looking to outsource” response prompted me to think more closely about why many companies are beginning to look outside of their offices for professional help when it comes to Search. Below are a few of my many thoughts on what may be causing this.

In-House Resources
Search Marketing involves an intricate level of knowledge across multiple disciplines such as marketing, copywriting, technology, creative, development and Web analytics. Management of SEM campaigns has very quickly become too much to handle in-house without the aid and support of an outside firm.

While most firms I talked to mentioned that they are still handling these services within their companies, on average, they are only employing one or two people to manage this daunting task. Meanwhile, many Search companies offer teams with collective knowledge and expertise generally 5 to 6 years deep, both within the Search space and across multiple industries. The clear benefit of partnering with a firm is that you are ultimately receiving consistent feedback, knowledge, training, and guidance on how to best plan and execute your Search campaign.