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IN ASSOCIATION WITH

Search Marketing Fact Pack | Advertising Age | 3

SEARCH
MARKETING
DATA ON ENGINES, KEYWORDS, SITES AND STUDIES
IT SOLVES A BASIC MARKETING need: connecting potential buyers to sellers. But until the
recent past, search marketing has lived a low-profile life in the media and advertising
world.
Today, however, it’s hard to ignore the stats: About 80% of internet traffic begins
at a search engine, according to Harris Interactive, and DoubleClick reports 41% of
web users use search for simple navigation, typing a query to find a brand rather than
typing a URL directly into their browser.
And how the business has grown: the latest figures from Forrester indicate search
marketing will be a $7 billion business this year.
While it may not be as flashy as TV, search is one of the best ways to extend the
life of a 30-second spot. Ignoring it is a stumble few marketers can afford, which is
why Advertising Age has compiled its first comprehensive Fact Pack devoted to
search marketing.
Sure, Ad Age has been covering search since its early days, you know, 1995 or so,
when Google was still a glimmer in Larry and Sergey’s eyes and the big news was
that the Lycos search engine decided to put ads on its site. But this special supplement
expands our promise of providing marketers with the best, most comprehensive data
and ideas to help them do their jobs smarter and more efficiently.
For example, on Page 38 we detail 12 search engine optimization strategies for
2007—you should know that adding tags, wikis and RSS to the content on your site
can do wonders for your web site’s search rankings. Or track the life of a search on
Page 30 with a case study of the term “HDTV.” Or check out the cool eye-tracking
study detailed on Page 40 to see what search marketers mean when they talk about
the “Golden Triangle.”
Additionally, Ad Age presents its first ranking ever of search advertising agencies.
That ranking, based on estimated revenue generated by SEM/SEO operations, pres-
ents the top 20 agencies, which you’ll find on Pages 48 and 49. Of course, if you’re
already lost with all this talk of SEM and SEO, you might want to skim the glossary
on Page 45 first.
We should point out that search marketing, as with all digital media and technolo-
gies, is a hot topic and thus covered by several different trade groups, research com-
panies and publications. Some methodologies and totals may vary slightly but taken
in full, this Fact Pack should provide a good picture of where search is now and where
it’s headed.
–Abbey Klaassen
4 | Advertising Age | Search Marketing Fact Pack

CONTENTS
Overview
The interactive channels marketers are using, and plan to use 6
The engines
Google, Yahoo, MSN, AOL and Ask lead the way 8
Categories and keywords
Top terms and the leading sites by category 20
Top search terms
Hitwise’s top 50 overall search terms, Nielsen’s top 50 retail terms 28
A sample search
Looking for HDTV; top bidders and destination sites 30
What words cost
Top terms and the leading sites by category 32
Search sells
Preferred tactics; conversion rates by tactic 34
Search engine optimization tips
From an interview with 360i’s David Berkowitz 38
Eye tracking
Enquiro’s Golden Triangle and the Google Effect 40
Local search
Leading engines by share, top terms, selected markets and local spending 42
Mobile
M:Metrics’ top engines by share and mobile search use trends over time 44
Click fraud
SEMPO’s study of advertiser and agency reaction 46
Agencies
Top 20 agencies by SEM/SEO revenue 48
Miscellaneous
Reaching YouTube; How users click 50
6 | Advertising Age | Search Marketing Fact Pack

OVERVIEW
U.S. SEARCH MARKETING SPENDING TO 2010
Source: Forrester Report “U.S. Online Marketing Forecast: 2005 To 2010,” May 2, 2005. Paid inclusion is
the amount spent on submitting pages to paid directories (like Froogle, Yahoo Shopping) for cataloging.
Paid search is the amount spent on paid search media on search engines. Contextual listings is the
amount spent buying contextual ads across content sites in different search engine or aggregator net-
works. Agency fees is the amount of money paid to interactive agencies or search marketing vendors
for help managing the above three buys.
DIGITAL MARKETING SPENDING IN MILLIONS OF DOLLARS
CHANNEL 2006 2007 2008 2009 2010
Paid inclusion $321 $366 $408 $447 $485
Agency fees 691 813 946 1,092 1,258
Contextual listings 1,181 1,426 1,665 1,881 2,089
Paid search 4,873 5,682 6,444 7,113 7,740
Total 7,067 8,287 9,463 10,533 11,571

U.S. PAID SEARCH AD SPENDING AS % OF ONLINE


Source: eMarketer (September 2006) using as benchmarks U.S. online advertising spending projections
against the Interactive Advertising Bureau-PricewaterhouseCoopers data for which the last full year
was 2005. Spending in 2005 was 41.0% of all online spending, a 33.6% increase over 2004.
PAID SEARCH AS PERCENT OF ALL ONLINE AD DOLLARS
2006 2007 2008 2009 2010
Forecast % of total 42.5 42.0 41.0 40.5 40.8
Forecast % growth 31.4 13.7 14.7 8.4 7.4

TOTAL DAILY & ANNUAL UNIQUE SEARCHES


Source: Data from Piper Jaffray & Co., January 2006, via eMarketer. Unique searches in millions.
TOTAL UNIQUE SEARCHES
2006 2007 2008 2009 2010
U.S.
Daily 363 405 447 488 528
% chg. vs. prior yr. 12.6 11.6 10.4 9.2 8.1
Annual 132,459 147,825 163,265 178,266 192,665
WORLDWIDE
Daily 1,065 1,263 1,464 1,669 1,871
% chg. vs. prior yr. 20.4 18.6 16.0 14.0 12.0
Annual 388,689 460,906 534,542 609,360 682,751
8 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 9

SEARCH SITES BY SHARE OF SITE VISITS


SEARCH ENGINES Source: Hitwise data for the week ending Sept. 30, 2006. Hitwise collects internet usage information
through partnerships with ISPs and opt-in panels to monitor more than 10 million users in the U.S. and
more than 25 million worldwide.
SHARE OF 6.5 BILLION SEARCHES RANK NAME DOMAIN SHARE
Source: comScore qSearch, a division of comScore Networks. Percent change based on the share of 1 Google www.google.com 47.68%
searches in August 2005. The overall volume of searches increased 28% since August 2005. *Change
is the difference in share points from year to year (August versus August). Profiles of the top five sites 2 Yahoo Search search.yahoo.com 16.68
run through Page 18.
3 MSN Search search.msn.com 10.13
PERCENT OF SEARCHES
AUG. ‘06 JULY ‘06 AUG. ‘05 CHANGE* 4 Google Image Search images.google.com 5.27

5 Ask.com www.ask.com 2.81


1 Google sites 44.1% 43.7% 37.3% 6.8
6 Yahoo Image Search images.search.yahoo.com 1.57
2 Yahoo sites 28.7 28.8 29.7 -1.0
7 AOL Search www.aolsearch.com 1.50
3 MSN-Microsoft sites 12.5 12.8 15.8 -3.3
8 My Web Search www.mywebsearch.com 1.15
4 Time Warner network 5.6 5.9 9.6 -4.0
9 Dogpile www.dogpile.com 0.69
5 Ask network 5.5 5.4 6.0 -0.5
10 ToSeekA www.toseeka.com 0.51
All other 3.6 3.4 1.6 2.0

SEARCH ENGINE PREFERENCE


All other 3.6% Source: Harris Interactive commissioned by iCrossing June 2005 via eMarketer. Engines preferred by
Google 44.1% U.S. adult internet users who use one search engine exclusively.
Ask 5.5% RANK NAME PERCENT

1 Google 13.0%
Time
2 AOL 11.0
Warner 5.6%
3 MSN 10.0

4 Yahoo/Overture 7.0

5 Ask 2.4

MSN 12.5% SEARCH ENGINE USE BY GENDER


Source: Hitwise data for four weeks ending Sept. 30, 2006
RANK NAME MALE FEMALE
Yahoo 28.7% 1 www.google.com 53.16% 46.84%

2 search.yahoo.com 49.75 50.25

3 search.msn.com 46.64 53.36


4 www.ask.com 45.19 54.81

5 www.aolsearch.com 41.09 58.91


10 | Advertising Age | Search Marketing Fact Pack

GOOGLE GAINS ANOTHER ANGLE


UP TO NOW, virtually all Google’s rev- HEADQUARTERS Mountain View, Calif.
enue has come from text-based search
DOMAIN google.com
advertising via its automated, low-cost
online signup process called AdWords. U.S. market share by searches: 44.1%*
AdWords lets advertisers implement ad
campaigns on Google properties, and via Average visitor minutes per month: 32.3*
AdSense, on the Google Network of FINANCIALS 2005 2004 % CHG
partners and affiliates who share rev-
Revenue $6.14 $3.19 92.5
enue in Google search results. Now Net income 1.47 0.40 267.2
Google is poised to add display and video U.S. revenue 3.76 2.12 77.3
ad streams by monetizing YouTube, the Non-U.S. revenue 2.38 1.07 122.6
free online video-sharing community it Notes: Dollars in billions for fiscal years ended Dec. 31.
is set to buy for $1.65 billion.
Acquisitions and ad partnerships have REVENUE BREAKOUT 2005 2004 % CHG
been integral to Google’s growth. The Total $6.14 $3.19 92.5
potential now extends to YouTube, billed Advertising 6.07 3.14 93.0
Licensing & other revenue 0.07 0.05 60.1
by some as Google’s door to Madison
Notes: Dollars in billions. Of the $6.07 bil ad total, $3.38 bil (up
Ave. because it gives Google control of
112.5%) is from Google’s own web sites, and $2.69 billion (up
video, precisely the inventory most 72.9%) is from the Google Network: Through its AdSense pro-
sought by many marketers. Earlier this gram, Google enables other web sites (its network) to deliver
year, Google got the search ad business AdWords ads that are relevant to the search results or the con-
from AOL by investing $1 billion in the tent of their pages. Google shares in such revenue generated
Time Warner unit, and from News from ads shown by a member of the “network.”
Corp.’s Fox Interactive Media in an
AD SPENDING 2005 2004 % CHG
exclusive $900 million multi-year deal
that also includes MySpace. U.S. $8.1 $4.6 76.1
Worldwide ad costs 104.3 37.7 176.7
Google agreed to supply ads on
Notes: Dollars in millions. U.S. spending is measured media
eBay’s international auction sites (Yahoo
from TNS Media Intelligence. Worldwide ad costs is from
has eBay domestic sites), and signed a $1
Google’s 10-K and includes measured and unmeasured forms of
billion multi-year deal with Dell to place advertising.
the Google search bar on new PC
screens. WORKFORCE 2005 2004 % CHG
Google has kept competitors on edge Employees 5,680 3,021 88.0
by launching a multitude of services. Top execs: Eric E. Schmidt, chmn & CEO; Larry Page, co-founder
Even Yahoo gives Google “innovative” & pres-prods; Sergey Brin, co-founder & pres-tech
points for its social networking site Top marketing execs: Omid Kordestani, sr VP-global sls & bus
Orkut, and for Google Earth and devel; Tim Armstrong, VP-sales & opers
Notes: Employee numbers are actual. All of Google’s full-time
Writely, a web-based processor. Now that
employees are equity holders.
video syndication is set to ramp up,
Google is well positioned with its product AGENCIES
troika: YouTube, the online community Google has no AOR. “Project” agencies have included Eleven, Goodby,
Blogger (a previous acquisition), and Silverstein & Partners, StrawberryFrog, Crispin Porter & Bogusky.
Google Network ad dispenser AdSense. *Source: comScore for share (Aug. ‘06), minutes (Feb. ‘06).
12 | Advertising Age | Search Marketing Fact Pack

SERVICES PILE UP FOR YAHOO


THE COMMUNITY BUILT by the leading HEADQUARTERS Sunnyvale, Calif.
online information portal/search engine
DOMAIN yahoo.com
Yahoo has always been its strong point
vis-a-vis its competition. Some 400 mil- U.S. market share by searches: 28.7%*
lion users are attracted to its web sites
ladened with news and entertainment, Average visitor minutes per month: 244.9*
search and online shopping, and a FINANCIALS 2005 2004 % CHG
plethora of individual services–e-mail,
Revenue $5.26 $3.57 47.1
message boards, personalized web pages. Net income 1.90 0.84 125.9
Other search engines, particularly U.S. revenue 3.67 2.65 38.2
Google, continue to threaten Yahoo’s Non-U.S. revenue 1.59 0.92 72.6
space. To protect its base, Yahoo like oth- Notes: Dollars in billions for fiscal years ended Dec. 31.
ers has turned inquisitive. In need of a
REVENUE BREAKOUT 2005 2004 % CHG
strong social network, it spent the sum-
Total $5.26 $3.57 47.1
mer negotiating with Facebook, a site
Advertising 4.59 3.13 46.9
built around college students. Those
Fees 0.66 0.45 48.4
talks have cooled. Given the fact growth
is limited for regular internet searches, Notes: Dollars in billions. Advertising is what Yahoo refers to as
social search is seen as taking search to a marketing services and is generated from display of textual,
new level. In 2005, Yahoo bought Flickr, rich media ads, display of text-based links to an advertiser's
a photo-sharing website, and del.icio.us, web site, listing-based services and commerce-based transac-
a web service for social bookmarking. tions. Fees include revenue from a variety of consumer and
Yahoo draws more than 87% of its business fee-based services. Yahoo created a stir in October
revenue from advertising, a mix of search when it reported a lower than expected third-quarter profit due
and display, including rich media, video declining auto and financial services ads. At the time, Yahoo
and targeting. Through Yahoo Publisher said it expected an ad boost next year when it launches an
Network, search ads are seen on Yahoo’s improved ad platform codenamed Panama—a paid listing model
and other publishers’ web sites. akin to Google's AdWords where clickthroughs impact ranking.
Partnerships and new services are AD SPENDING 2005 2004 % CHG
diversifying that revenue. Yahoo and
U.S. $36.8 $55.1 -33.2
Microsoft connected their instant mes- Worldwide ad costs 201.0 160.0 25.6
saging platforms this year, thereby gen- Notes: Dollars in millions. U.S. spending is measured media
erating a community of 275 million from TNS Media Intelligence. Worldwide ad costs is from
users. Yahoo also entered in partnership Yahoo’s 10-K and includes measured and unmeasured forms of
with China’s largest e-commerce firm, advertising.
Alibaba.com. Other partnerships: AT&T
WORKFORCE 2005 2004 % CHG
and Verizon for DSL.
Employees 9,800 7,600 28.9
This year, Yahoo brought Yahoo Go
Top exec: Terry S. Semel, chmn & CEO
TV to market. It enables users to view Top marketing exec: Cammie Dunaway, chief mktg officer
and manage PC-based content on their
TV sets. And for podcasts and user-gen- AGENCIES
erated audio recordings, Yahoo has added Soho Square, OgilvyOne Worldwide. Media: MindShare Worldwide
search and directory functionality. *Source: comScore for share (Aug. ‘06), minutes (Feb. ‘06).
14 | Advertising Age | Search Marketing Fact Pack

MSN PLAYS UP TARGETING


MSN’S CACHET IS ITS TARGETING abilities. HEADQUARTERS Redmond, Wash.
Its adCenter program, launched in 2005,
DOMAIN MSN.com
combines registration data with audience
profiling details enabling marketers to U.S. market share by searches: 12.5%*
home in on their target audience. Now
adCenter is set to gain “contextuality” as Average visitor minutes per month: 176.0*
MSN pilots Context Ads, which lets FINANCIALS 2006 2005 % CHG
advertisers place content-targeted ads on
Revenue $44.28 $39.79 11.3
select MSN channels, but eventually will Net income 12.60 12.25 2.8
extend to other publishers' sites in the U.S. revenue 29.73 26.95 10.3
manner of Yahoo Publisher Network Non-U.S. revenue 14.55 12.84 13.3
and Google's AdSense. Notes: Dollars in billions for years ended June 30 for Microsoft.
A perennial third in search market
MSN REVENUE 2006 2005 % CHG
share behind Google and Yahoo, the web
portal MSN provides news, information Total $2.30 $2.33 -1.5
Advertising 1.52 1.39 9.5
and entertainment, shopping and games,
Access 0.50 0.69 -27.6
online info offerings like MSN Search, Subs/transaction services 0.28 0.25 9.5
and communications services such as Notes: Dollars in billions from MSN & Personal Services Group at
message boards, Hotmail (261 million Microsoft. Advertising is search and display advertising from
active accounts) and instant messaging. portals, channels, e-mail, and messaging services. Access is
The portal includes a dial-up Internet MSN narrowband internet access subs (2.1 million in 2006 vs. 2.7
access service (2.1 million subs) and
MSN TV, which enables users to surf the
million in 2005) and 261 million active Hotmail and 243 million
active Messenger accounts). Subs/transactions are generated
Our customers are easier to spot.
web on their TV sets. from online paid services via consumers and partners.
It’s a simple idea in the search industry that far too many
Revenue is derived primarily from AD SPENDING 2006 2005 % CHG overlook. Provide sound, quality strategies that get results. Commit
advertisers on MSN, from consumers U.S. $463.0 $485.5 -4.6 to taking the lead in customer satisfaction by putting people
and partners through subscriptions and Worldwide ad costs 1,230.0 995.0 23.6 first. And deliver client services that help businesses grow
transactions generated from online paid Notes: Dollars in millions and based on Microsoft as a whole.
services, and from MSN narrowband and succeed. It’s the value IMPAQT brings to every relationship.
U.S. spending is Microsoft’s measured media from TNS Media
internet access subscribers. Search rev- Intelligence. Worldwide ad costs is from Microsoft’s 10-K and And how we can help you stand out from the crowd and be recognized.
enue declined in fiscal 2006 due to the includes measured and unmeasured forms of advertising.
transition to adCenter. WORKFORCE 2006 2005 % CHG
MSN just introduced Soapbox in test, Microsoft employees 71,000 61,000 16.4
a video sharing service not unlike Top corp execs: Bill Gates, chmn; Steven A. Ballmer, CEO
YouTube. It has gotten high marks for Corp marketing exec: Brian Kevin Turner, COO, Microsoft
the ease at which users can share videos Online Business Group execs: Steve Berkowitz, sr VP; Yusuf
and find and search for clips. MSN needs To find out more about the company JupiterResearch* recognized for
Mehdi, chief ad strategist
a hit in Soapbox to keep users from Notes: Online Business Group houses ad sales, business develop-
Highest Overall Value for the second year, call 888-WHY-IMPAQT.
migrating to a video-enhanced AOL or ment and marketing for Live, Windows Live and MSN platforms. Or visit us online at impaqt.com.
Google (YouTube). MSN has the search Employees are for Microsoft and worldwide.
ad deal with social-network site AGENCIES Chicago | Minneapolis | Pittsburgh | New York
Facebook, although that site is believed McCann Erickson, San Francisco. Media: Universal McCann
to be a current buyout target of Yahoo. *Source: comScore for share (Aug. ‘06), minutes (Feb. ‘06).
*JupiterResearch SEM Agency Constellation Report, August 2006
16 | Advertising Age | Search Marketing Fact Pack

AOL SHIFTS TO AD-BACKED MODEL


AOL, A TIME WARNER division, is in the HEADQUARTERS (AOL) Dulles, Va.
middle of a radical reorganization begun
DOMAIN AOL.com, Netscape, CompuServe
in August that is converting it from a
profitable but declining internet dial-up U.S. market share by searches: 5.6%*
business to an online destination, partic-
ularly for video and video search, sup- Average visitor minutes per month: 290.5*
ported by internet advertising. AOL
FINANCIALS 2005 2004 % CHG
now offers e-mail and software free.
Revenue $43.65 $42.09 3.7
AOL is expanding services and
Net income 2.91 3.36 -13.6
adding new ones as part of the plan. It is
U.S. revenue 34.47 33.57 2.7
partnering with four major Hollywood Non-U.S. revenue 9.18 8.52 7.8
studios to feed downloadable movies Notes: Dollars in billions for Time Warner for fiscal years ended
through the portal. It introduced a new Dec. 31. Time Warner is based in New York.
version of Winamp, the free media play-
er that attracts a global community of 57 AOL REVENUE 2005 2004 % CHG
million monthly users. AOL is creating a Total $8.28 $8.69 -4.7
wireless division, and is placing renewed Advertising 1.34 1.01 33.1
Subscriptions 6.76 7.48 -9.7
emphasis on services and features for
Other 0.19 0.21 -9.5
cell phones.
Notes: Dollars in billions. Figures are worldwide. AOL’s U.S. rev-
In a move to lure former subscribers,
enue is estimated at $6.32 billion by Ad Age. Advertising is bro-
AOL introduced OpenRide, free desktop ken down into Advertising.com at $259 million, up 167%, and
software that gives users access to a dig- pre-paid search/traditional online at $1.08 billion, up 18.8%. Sub
ital entertainment media center. There revenue comes from 19.5 million U.S. subs in 2005, down 3%,
they can listen to music, view photos and and 6 million subs in Europe, down 1.6%. Other is software pro-
watch video. OpenRide also links e-mail, viding TW's cable segment access to AOL for high-speed inter-
instant messaging, web browsing and net, and sale of modems to consumers for internet access.
search.
AD SPENDING 2005 2004 % CHG
Web search is critical to a business plan
U.S. $2.10 $2.05 2.7
predicated on internet advertising, and
Worldwide ad costs 5.17 4.95 4.4
AOL will need to brand its search perhaps
Notes: Dollars in millions and based on Time Warner as a whole.
better than the “enhanced by Google” tag U.S. spending is Time Warner’s measured media from TNS Media
carried by its brands. AOL, ranks second Intelligence. Worldwide ad costs is from the company’s 10-K and
to Yahoo in online audience, but it only includes measured and unmeasured forms of advertising.
has a 5.6% search market share, according
to comScore Network’s August data. WORKFORCE 2005 2004 % CHG
Google just this year purchased 5% of Employees 87,850 84,900 3.5
AOL, letting Google keep rights to run Top exec: Richard D. Parsons, chmn & CEO, Time Warner
AOL’s ad search operations. The deal Top marketing exec: Joe Redling, CMO & pres-access bus
AOL top exec: Jonathan Miller, chmn & CEO, AOL
makes more AOL content available to
Notes: Total employees for Time Warner and worldwide
Google users and marks that content as
AOL in Google search results—perhaps AGENCIES
just the right mark to boost the AOL AOL’s AOR agency: Hill Holliday
brand. *Source: comScore for share (Aug. ‘06), minutes (Feb. ‘06).
18 | Advertising Age | Search Marketing Fact Pack

ASK TOUTS A PURER SEARCH WHY ADVERTISE TO COMPANIES


WHO WANT TO MARKET IN CHINA?
ASK IS THE SEARCH engine that truly HEADQUARTERS (ASK) Oakland, Calif. $8.8 Trillion GDP, 1.3 Billion consumers and the 2008 Olympics in Beijing for starters
focuses on search. Formerly the publicly
DOMAINS ask, excite, iWon, myWay, evite.com
held company Ask Jeeves, it is now part
of IAC Search & Media, its corporate U.S. market share by searches: 5.5%*
home under IAC/InterActiveCorp,
which acquired Ask and its multiple por- Average visitor minutes per month: 19.9%*
tals in July 2005. The IAC division offers
FINANCIALS 2005 2004 % CHG
country-specific Ask sites in the U.S.,
Revenue $5.75 $4.19 37.4
U.K., Germany, Italy, Japan, The
Net income 0.87 0.87 0.0
Netherlands and Spain, and also operates U.S. revenue 4.95 3.54 39.9
Ask For Kids, portals Excite.com, Non-U.S. revenue 0.80 0.65 23.8
MyWay.com, iWon.com and Evite, a Notes: Dollars in billions for IAC/InterActiveCorp for fiscal years
website offering free online invitation
services.
ended Dec. 31. IAC/InterActiveCorp is based in New York. The edge marketers need to build their brands in China
IAC SEARCH REVENUE 2005 2004 % CHG With usable data, stats and intelligence on China’s economy, media and
A redesigned site was launched in consumers, the China Fact Pack is the year-round resource marketers will
February as part of the rebranding of Ask Total $0.49 $0.29 66.3
Advertising 0.49 0.29 66.3
use to better understand China and build their brands in the world’s 2nd-
from Ask Jeeves. In an Ask search, con- largest economy.
Notes: Dollars in billions for the IAC Search & Media segment of
tent comes before ads and includes relat-
the parent and estimated by Ad Age. The segment is basically
ed links that the user might not have
considered. Ask uses the Teoma algo-
Ask properties and CitySearch. Figures are shown pro forma as Distribution
if Ask properties were owned for two consecutive years. Ask
rithm, now known as ExpertRank, which ONLINE available for 12 months to AdAge.com’s 95,000 weekly unique users
Jeeves, predecessor to Ask, was acquired May 6, 2004.
clusters searches by topic communities. PRINT distributed with March 12th issue of Ad Age to all 56,000 subscribers
As an example, in a search for “global AD SPENDING 2005 2004 % CHG
warming” the user is asked to expand the U.S. $174.8 $146.7 19.1 Subscribe to Ad Age and get your copy of the China Fact Pack:
search to “greenhouse effect.” Worldwide ad costs 395.3 224.4 76.2 adage.com/subscribe • Tel: 888.288.5900
Ask initially was set apart from other Notes: Dollars in millions and based on IAC/InterActiveCorp as a
search engines that popularized keyword whole. U.S. spending is IAC/InterActiveCorp’s measured media Advertise your own capabilities to help marketers build their brands in China:
from TNS Media Intelligence. Worldwide ad costs is from the Suzanne Hermalyn, Director, Business Development • Tel: 508.497.8688 •
search. Its search technology allowed
company’s 10-K and includes measured and unmeasured forms shermalyn@crain.com
users to pose questions in everyday, nat-
of advertising.
ural language (English). But as keywords
became the standard, Ask lost users to WORKFORCE 2005 2004 % CHG
Google and others. Employees 28,000 26,000 7.7
Ask has since joined the keyword Top exec: Barry Diller, chmn & CEO, IAC/InterActiveCorp
search club but still strives to be intuitive Top marketing exec: Greg Ott, VP-mktg
and user-friendly. Ask top exec: Jim Lanzone, CEO
IAC Search & Media draws most of its Notes: Employees for IAC/InterActiveCorp and worldwide
revenue from a paid listing supply AGENCIES
agreement with Google, which expires in Ask.com moved its creative account this fall from TBWA/Chiat/Day
December 2007. Paid listings appear on to Crispin Porter & Bogusky. At the same time, Mullen’s MediaHUB
search results generated on Ask web beat out OMD, San Francisco, for the Ask media business, thereby
sites in response to keywords selected by consolidating Ask with its other IAC business, Match.com and
advertisers with which Google has LendingTree.com, also part of the review. Fact Packs Industry Rankings Surveys Online Data Center
entered into contracts. *Source: comScore for share (Aug. ‘06), minutes (Feb. ‘06).
© 2006 Crain Communications Inc.
20 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 21

SHOPPING & CLASSIFIED


CATEGORIES
RANK SITE DOMAIN SHARE
1 eBay www.ebay.com 19.6
2 eBay Motors www.ebaymotors.com 3.6

& KEYWORDS
3 Amazon.com www.amazon.com 3.4
4 Craig’s List www.craigslist.org 1.6
5 Walmart www.walmart.com 1.5
6 Target www.target.com 1.1
TOP TERMS AND DOMAINS 7 NetFlix.com www.netflix.com 0.9

Source: Ad Age asked Hitwise to rank the top search terms driving traffic to domains on the most heav- 8 BestBuy.com www.bestbuy.com 0.7
ily advertised “traditional media” categories according to TNS Media Intelligence. Ad Age ran a ranking 9 Dell USA www.dell.com 0.7
of the categories in the 100 Leading National Advertisers Special Report (AA, June 26.) The category 10 BizRate www.bizrate.com 0.6
rankings run through Page 27. The top terms shown are those driving traffic to the category. The
domains are the top web sites in the category, regardless of how users accessed the site. TOP 8 TERMS DRIVING TRAFFIC SHARE TERM SHARE
ebay 1.46 target 0.30
TOP CATEGORIES REACHED BY SEARCH craigslist 0.61 amazon 0.27

Source: Hitwise data for the week of Sept. 30, 2006. Hitwise collects internet usage information walmart 0.41 halloween costumes 0.27
through partnerships with ISPs and opt-in panels to monitor more than 10 million users in the U.S. and ebay.com 0.33 amazon.com 0.25
more than 25 million worldwide. This table shows that 43.19% of all traffic on health & medical sites
came from search engines. On all sites, 20.07% came from search engines.
PERCENT OF TRAFFIC (VISITS)
RANK CATEGORY FROM SEARCH ENGINES

1
2
Health and medical
Education
43.19%
40.76
Search markr eting gets
3 Food and beverage 37.76 potential customers
4 Government 31.14
5 Community 30.11 to your door.
d
6 Travel 28.63
7
8
Music
Shopping & classified
27.74
25.23
Then what?
T
9 21.90
10
Aviation
Automotive 21.32
k™
Introducing After The Click
11 Lifestyle 21.00
12 News and media 19.34
13 Entertainment 18.25
14 Gambling 15.97
15 Businesss and finance 14.24
16 Computers and internet 10.79
www.aftertheclick.com
17 Sports 7.89
All categories 20.07
22 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 23

TOP SITES BY SHARE OF VISITS BY CATEGORY TOP SITES BY SHARE OF VISITS BY CATEGORY
Source: Hitwise data for Sept. 2006. Share for search terms below is of all search traffic to the category. Source: Hitwise data for Sept. 2006. Share for search terms below is of all search traffic to the category.

RANK SITE AUTOMOTIVE DOMAIN SHARE RANK SITE BUSINESS INFORMATION DOMAIN SHARE
1 eBay Motors www.ebaymotors.com 22.3 1 Yahoo Finance finance.yahoo.com 32.6
2 NASCAR.com www.nascar.com 3.8 2 MSN Money moneycentral.msn.com 12.5
3 AutoTrader.com www.autotrader.com 3.7 3 CNN Money money.cnn.com 4.4
4 Kelley Blue Book www.kbb.com 2.6 4 Market Watch www.marketwatch.com 3.8
5 Cars.com www.cars.com 2.0 5 Entrepreneur.com www.entrepreneur.com 2.6
6 Edmunds www.edmunds.com 1.5 6 Forbes.com www.forbes.com 2.1
7 Yahoo! Autos autos.yahoo.com 1.3 7 Reuters www.reuters.com 2.1
8 MSN Autos autos.msn.com 1.1 8 Internal Revenue Service www.irs.gov 2.0
9 GEICO www.geico.com 1.0 9 Bankrate www.bankrate.com 1.8
10 autobytel.com www.autobytel.com 0.9 10 Bloomberg www.bloomberg.com 1.6

TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE
ebay 1.20 nascar 0.54 better business bureau 0.74 free people search 0.30
kelly blue book 1.08 ebay motors 0.51 irs 0.67 bbb 0.29
used cars 0.63 toyota 0.50 yahoo finance 0.60 akam 0.29
autotrader 0.61 cars.com 0.46 mortgage calculator 0.44 irs.gov 0.26
auto trader 0.54 nascar.com 0.46 ebay 0.38 equifax 0.26

RANK SITE BANKS DOMAIN SHARE RANK SITE STOCKS & SHARES DOMAIN SHARE
1 Bank of America www.bankofamerica.com 7.6 1 Yahoo! Finance finance.yahoo.com 23.9
2 Bank of America Online Banking onlinebanking-nw.bankofamerica.com 7.5 2 MSN Money moneycentral.msn.com 9.2
3 Wells Fargo - Online Banking online.wellsfargo.com 4.2 3 TD AMERITRADE www.tdameritrade.com 5.2
4 Wells Fargo www.wellsfargo.com 4.0 4 Fidelity Investments www.fidelity.com 4.4
5 Chase Online chaseonline.chase.com 3.2 5 CNN Money money.cnn.com 3.2
6 Chase Investment Banking www.chase.com 3.0 6 The Vanguard Group www.vanguard.com 3.0
7 Citi Cards - Online Services www.accountonline.com 2.4 7 E*TRADE www.etrade.com 2.9
8 Capital One USA www.capitalone.com 2.3 8 Market Watch www.marketwatch.com 2.8
9 Wachovia www.wachovia.com 2.3 9 Fidelity Investments - NetBenefits netbenefits.fidelity.com 2.6
10 Washington Mutual - Personal Banking Online onlinebanking.personal.wamu.com 2.2 10 Charles Schwab www.schwab.com 2.6

TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE
bank of america 3.53 www.bankofamerica.com 0.99 scottrade 1.14 ebay 0.63
wells fargo 1.41 wachovia 0.90 fidelity 1.02 fidelity.com 0.59
bankofamerica 1.12 chase 0.88 yahoo finance 0.98 etrade 0.59
wellsfargo.com 1.12 capital one 0.79 ameritrade 0.76 vanguard.com 0.52
bankofamerica.com 1.00 chase.com 0.75 vanguard 0.75 akam 0.46
24 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 25

TOP SITES BY SHARE OF VISITS BY CATEGORY RANK SITE FLOWERS & GIFTS DOMAIN SHARE

Source: Hitwise data for Sept. 2006. Share for search terms below is of all search traffic to the category. 1 Hallmark.com www.hallmark.com 16.7
2 Birthday Alarm www.birthdayalarm.com 7.2
RANK SITE TELECOMMUNICATIONS DOMAIN SHARE
3 The Lakeside Collection www.lakeside.com 5.7
1 Cingular Wireless www.cingular.com 8.8
4 Collections ETC www.collectionsetc.com 5.4
2 Verizon www.verizon.com 8.4
5 DaySpring Cards www.dayspring.com 4.0
3 Verizon Wireless www.verizonwireless.com 6.7
6 Florists’ Transworld Delivery www.ftd.com 3.5
4 Cingular Account Quick Access www.myaccount.cingular.com 6.3
7 1-800-flowers.com www.1800flowers.com 3.3
5 Sprint www.sprint.com 5.3
8 ProFlowers www.proflowers.com 2.0
6 T-Mobile USA www.t-mobile.com 4.9
9 A.C. Moore www.acmoore.com 1.7
7 AT&T att.sbc.com 3.8
10 RedEnvelope Gifts www.redenvelope.com 1.4
8 My T-Mobile my.t-mobile.com 3.6
9 Verizon Wireless - My Account myaccount.verizonwireless.com 3.5 TOP 8 TERMS DRIVING TRAFFIC SHARE TERM SHARE
10 Cingular Wireless - Online Store onlinestore.cingular.com 3.3 flowers 2.38 ftd 0.46
hallmark 1.36 hallmark cards 0.43
TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE
hallmark.com 0.79 gift baskets 0.39
cingular 4.96 sprint 1.39
www.lakeside.com 0.69 things remembered 0.39
verizon 3.92 tmobile 1.25
verizon wireless 2.54 nextel 1.21
t-mobile 1.57 t mobile 1.07
cingular.com 1.54 cingular wireless 1.01

RANK SITE HEALTH & MEDICAL DOMAIN SHARE


rock-solid cash flow
1 TL Sciences www.tlsciences.com 5.3
2 Merck www.merck.com 3.4
3 Lamisil www.lamisil.com 2.1
4 Ambien CR www.ambiencr.com 1.8
5 Tylenol www.tylenol.com 1.7
6 Bausch & Lomb-PureVision www.purevision.com 1.6
7 Pfizer Consumer Healthcare www.pfizerch.com 1.6
8 Cymbalta www.cymbalta.com 1.2
9 RX Generic Drugs www.rxgenericdrugs.com 1.2
10 Purple Pill - Nexium www.purplepill.com 1.1 Partnering with TMPDM will make your life easy. When it comes to media

TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE selection, there’s no guessing. No chaos. Just rock-solid experience that
lexapro 0.90 herpes 0.38 helps us determine the perfect mix of traditional and interactive marketing
cymbalta 0.59 depression 0.37 for your company. Get ready to watch the cash flow.
viagra 0.48 phentermine 0.36
zoloft 0.43 wellbutrin 0.28
pfizer 0.43 merck 0.27
26 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 27

TOP SITES BY SHARE OF VISITS BY CATEGORY TOP SITES BY SHARE OF VISITS BY CATEGORY
Source: Hitwise data for Sept. 2006. Share for search terms below is of all search traffic to the category. Source: Hitwise data for Sept. 2006. Share for search terms below is of all search traffic to the category.

RANK SITE BEAUTY DOMAIN SHARE RANK SITE MOVIES DOMAIN SHARE
1 Avon.com www.avon.com 6.8 1 The Internet Movie Database www.imdb.com 20.3
2 Arbonne www.arbonne.com 6.2 2 NetFlix.com www.netflix.com 12.3
3 Mary Kay www.marykay.com 5.2 3 Yahoo! Movies movies.yahoo.com 7.5
4 Sephora.com www.sephora.com 4.9 4 Blockbuster www.blockbuster.com 6.3
5 Bath and Body Works www.bathandbodyworks.com 3.8 5 MSN Entertainment - Movies movies.msn.com 5.5
6 Lancome USA www.lancome-usa.com 2.6 6 Moviefone.com www.moviefone.com 2.9
7 About Beauty and Health beauty.about.com 2.4 7 Fandango.com www.fandango.com 2.8
8 Makeup Alley www.makeupalley.com 2.1 8 Rotten Tomatoes www.rottentomatoes.com 2.0
9 HairBoutique.com www.hairboutique.com 1.9 9 Movies.com www.movies.com 1.6
10 Procter & Gamble www.pg.com 1.9 10 MovieTickets.com www.movietickets.com 1.3

TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE
hairstyles 3.95 bath and body works 0.67 imdb 1.10 netflix.com 0.24
hair styles 2.09 bare minerals 0.66 netflix 0.99 hollywood video 0.22
avon 1.29 sephora 0.65 movies 0.68 blockbuster.com 0.21
homecoming hairstyles 0.93 short hair styles 0.57 blockbuster 0.64 harry potter 0.19
makeupalley 0.79 arbonne 0.53 fandango 0.35 movie times 0.19

RANK SITE FOOD & BEVERAGES DOMAIN SHARE RANK SITE TRAVEL DOMAIN SHARE
1 Kraft Foods USA www.kraftfoods.com 10.6 1 MapQuest www.mapquest.com 14.6
2 Wrigley’s Candystand www.candystand.com 6.9 2 Yahoo! Maps maps.yahoo.com 4.9
3 BettyCrocker.com www.bettycrocker.com 3.1 3 Expedia.com www.expedia.com 4.8
4 Pizza Hut USA www.pizzahut.com 2.7 4 Travelocity.com www.travelocity.com 2.9
5 Pillsbury www.pillsbury.com 2.3 5 Southwest Airlines www.southwest.com 2.8
6 Boca Java www.bocajava.com 2.2 6 Orbitz www.orbitz.com 2.7
7 Gevalia www.gevalia.com 2.1 7 Cheap Tickets www.cheaptickets.com 2.6
8 Pepsiworld www.pepsi.com 1.8 8 Google Maps maps.google.com 2.1
9 NabiscoWorld.com www.nabiscoworld.com 1.8 9 Yahoo! Travel travel.yahoo.com 1.4
10 Maxwell House www.maxwellhouse.com 1.7 10 Priceline.com www.priceline.com 1.3

TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE TOP 10 TERMS DRIVING TRAFFIC SHARE TERM SHARE
pizza hut 2.06 dominos pizza 0.60 mapquest 4.05 southwest airlines 0.55
starbucks 1.30 www.maxwellhouse.com 0.54 map quest 1.37 expedia 0.55
mcdonalds 0.98 betty crocker 0.54 maps 1.09 travelocity 0.54
subway 0.72 candystand.com 0.52 mapquest.com 0.76 google earth 0.46
candystand 0.65 burger king 0.49 driving directions 0.59 orbitz 0.45
28 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 29

TOP SEARCHES
A PORN-FREE LOOK AT THE TOP 50 TOP 50 RETAIL & PRODUCT SEARCHES
From Hitwise for four weeks ending Sept. 30, 2006. Share is the percent of all terms searched. From Nielsen/NetRatings MegaView Search for the month of August 2006. Searches are in thousands.

RANK TERM SHARE RANK TERM SHARE RANK TERM SEARCHES RANK TERM SEARCHES

1 myspace 0.880 26 yellow pages 0.058 1 walmart 2,641 26 macys 555

2 myspace.com 0.530 27 halloween costumes 0.056 2 target 2,096 27 sams club 536

3 ebay 0.290 28 games 0.056 3 home depot 2,006 28 qvc.com 532

4 yahoo 0.230 29 weather 0.054 4 amazon 1,668 29 used cars 529

5 www.myspace.com 0.230 30 amazon 0.052 5 lowes 1,629 30 radio shack 514

6 mapquest 0.230 31 amazon.com 0.049 6 qvc 1,617 31 kohls 503

7 my space 0.180 32 home depot 0.048 7 cingular 1,534 32 toyota 498

8 myspace layouts 0.160 33 best buy 0.047 8 best buy 1,454 33 dogs 476

9 yahoo.com 0.140 34 msn 0.047 9 sears 1,352 34 dell.com 473

10 steve irwin 0.130 35 pogo.com 0.046 10 verizon 1,119 35 dish network 460

11 craigslist 0.120 36 people search 0.046 11 office depot 1,095 36 lowe’s 454

12 dictionary 0.110 37 espn 0.045 12 store fixtures 1,076 37 direct tv 449

13 lyrics 0.082 38 aol.com 0.044 13 german shepherds 949 38 old navy 444

14 walmart 0.081 39 cingular 0.043 14 costco 853 39 petsmart 437

15 map quest 0.077 40 mapquest.com 0.043 15 walgreens 755 40 hp 428

16 google 0.073 41 sears 0.042 16 walmart.com 734 41 ford 427

17 wikipedia 0.072 42 facebook 0.041 17 staples 713 42 girls gone wild 422

18 white pages 0.068 43 lowes 0.041 18 bed bath and beyond 699 43 wal mart 418

19 youtube 0.066 44 limewire 0.040 19 sprint 683 44 cingular.com 418

20 ebay.com 0.065 45 msn.com 0.038 20 kmart 641 45 verizon.com 414

21 maps 0.063 46 runescape 0.037 21 wal-mart 626 46 cingular wireless 413

22 match.com 0.063 47 pogo 0.036 22 ikea 622 47 ipod 400

23 bank of america 0.061 48 you tube 0.035 23 overstock.com 613 48 compusa 392

24 target 0.060 49 aol 0.035 24 target.com 572 49 furniture 386

25 www.yahoo.com 0.060 50 verizon 0.035 25 verizon wireless 556 50 www.walmart.com 367


30 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 31

TOP 10 WEBSITES THAT RECEIVED TRAFFIC


A SAMPLE SEARCH
To illustrate the life of searches for a popular search of the ever-popular high definition TV
FROM THE TERM ‘HDTV’
Source: Hitwise for four weeks ending Sept. 30, 2006. Percent of volume is the share of all traffic that
item, Ad Age asked Hitwise to track searches for sets given that the 30 million HDTV sets in use in went to the site after searching for ‘HDTV’.
‘HDTV ‘. Ad Age also queried Yahoo’s public View the U.S. by the third quarter of 2006 will grow to RANK SITE % VOLUME
Bids tool to come up with the top 15 bids ‘HDTV’ 40 million by year's end, and hit 70 million by the
on Yahoo.com. The findings are likely to be in the end of 2007, according to estimates from HDNet, 1 www.cnet.com 12.26%
mix this coming year for countless Americans in the all-high definition national TV network. 2 search.dlp.com 8.17
3 www.howstuffworks.com 7.49
TOP 15 BIDS FOR THE TERM ‘HDTV’ 4 electronics.howstuffworks.com 6.81

Source: Yahoo’s public View Bids tool for Oct. 11, 2006. Bidders pay only one cent above the next lowest 5 www.wikipedia.org 6.13
bid per click. In Yahoo search, highest bidders always appear on top of search results pages, but Yahoo 6 www.ee.washington.edu 6.13
plans to roll out relevancy rankings in the first quarter of 2007. Bid is the advertisers maximum bid.
7 www.bestbuy.com 5.45
RANK BIDDER/AD TEXT/SITE BID RANK BIDDER/AD TEXT/SITE BID
8 hdtvinfoport.com 4.09
1 HDTV at AOL® $2.02 9 Time Warner HDTV Digital Cable Service $0.72 9 www.circuitcity.com 3.41
Find great deals at AOL® Shopping - shop An ultimate TV experience. Theater-like quality with
conveniently at home and save. wider viewing area, crystal-clear pictures and sur- 10 www.nextag.com 2.72
shopping.aol.com round sound technology. High definition movies,
2 Hitachi Plasma HDTV 2.01 events and programs. Free set-top box.
Experience Hitachi’s HDTV technology in an www.timewarnercable.com
ultra compact design. 10 HDTV Deals in Your Zip 0.58
www.hitachi.us Great selection. Incredible prices.
3 Vikuiti Brighter LCD HDTV 2.00 www.shoplocal.com
Visit Vikuiti.com to compare LCD, plasma and 11 HDTV Televisions - Bargain Prices 0.57
DLP TVs. Shop fast, Buy smart, Shopzilla for HDTV
www.vikuiti.com Televisions and other Televisions and Accessories.
Every product from every store means you get a
4 HP MediaSmart TV 1.00
Bargain Price. Don’t just shop, Shopzilla.
The HP MediaSmart 37” LCD HDTV - TV is per-
www.shopzilla.com
sonal again. Learn more.
www.hp.com 12 New TiVo® HD Series3™ - Official Site 0.50
The only THX-certified HD TV recorder. Get
5 Vizio Electronics - HDTV 1.00
the new TiVo ® HD box today. THE FUTURE OF SEARCH MARKETING
Visio 50” Plasma Monitor $1,999. Where vision tivo.com
meets value. Learn more.
13 HDTV - Time Warner Digital Cable 0.48
6
www.viziotv.com
Comcast Digital Cable - Official Site 0.87
Order Time Warner Digital Cable:DVR, HDTV, Wondering Why Your Customers
On Demand & no contract. Order now for over
Bring HDTV into your home with Comcast 200 channels and parental controls. As low as Can’t Seem to Find You?
Digital Cable. +$39.95/MONTH FOR 3 MONTHS.
www.comcast.com As a Marketing Professional you know that without a properly
www.timewarnercableoffers.com
7 Buy HDTV Stock for $4 0.86 optimized website, your company will be losing potential customers.
14 HDTVs at BestBuy.com 0.46
No Account or Investment Minimums. No Buy high quality televisions at BestBuy.com. But until now, site optimization has been a frustrating and unpredictable
Inactivity Fees. Trade Online. www.bestbuy.com
www.sharebuilder.com process, based primarily on hunches and educated guesswork.
15 DIRECTV Makes It Easy to Get HD 0.40
8 Get HDTV Special Deal 0.82 Official Site. Order DIRECTV today w/ our incredi- That’s why we developed SEMLogicTM which uses semantic analysis,
HDTV for $19.99 a month with free movie ble HD package plus get 250+ digital-quality
artificial intelligence and quantitative analysis to bring a new level of
channels and $100 rebate, call today for free channels w/ superior picture & sound at a great
installation and DVR. value - an ultimate entertainment experience. rigor and certainty to the entire SEO process.
www-dishnetwork.com www.directv.com
1.888.SEMLOGIC [736.5644] www.FortuneInteractive.com
32 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 33

WHAT WORDS
COST OVERALL COST PER CLICK
Source: Data from MarketingSherpa, March 2006, via eMarketer.. Notes: N=3,271 SEM marketers &
TOP BIDS FOR SELECT PAID SEARCH TERMS ON YAHOO agencies and 776 affiliate marketers & merchants. Data are for U.S. paid search ads only.
COST PER CLICK
Source: eMarketer using Yahoo Search Marketing (formerly Overture) to identify high bids for the top
ENGINE 2005 2004 % CHG
five positions as of Jan. 23, 2006 at 2:30pm EST.
Google AdWords $1.61 $1.29 24.8
TOP BIDS BY POSITION
TERM NO. 1 NO. 2 NO. 3 NO. 4 NO. 5 Yahoo/Overture PPC 1.34 1.03 30.1
Hotel $2.00 $1.30 $1.29 $1.20 $1.13 Shopping engines 2.56 1.87 36.9
Car rental 1.50 1.50 1.50 1.49 1.25 2nd tier search properties 0.58 0.00 NA
Computer 8.50 2.01 2.00 1.01 1.00
Bicycle 0.39 0.38 0.28 0.20 0.18 AVERAGE PAY-PER-CLICK TERM COST
Automobile 0.98 0.98 0.97 0.97 0.96 FOR TOP KEY TERMS
1.69 1.68 1.50 0.89 0.88
Viagra
Sopranos 0.88 0.62 0.17 0.11 0.11
AMONG THE TOP FIVE SEARCH ADVERTISING INDUSTRIES
Source: Data from Click Forensics. Top five industries are retail, financial services, health & fitness, tech-
Subaru Forester 1.02 1.02 1.01 1.00 1.00 nology & entertainment.
Real estate San Francisco 2.27 2.16 2.15 2.12 2.11 AVERAGE
Starbucks 0.30 0.21 0.20 0.16 0.14 TIME PERIOD COST
First quarter 2006 $4.75

PERCENT CHANGE FOR SELECT TERMS Second quarter 2006 4.51


Third quarer 2006 3.92
Source: eMarketer using Yahoo Search Marketing (formerly Overture) to identify the percent change on
high bids for select terms as of Jan. 23, 2006 at 2:30pm EST. versus Dec. 2004.

TERM NO. 1 NO. 2


TOP BIDS BY POSITION
NO. 3 NO. 4 NO. 5
BIDDING STRATEGIES
Suggestions from Kevin Lee, executive chairman and co-founder of Did-It, a search agency.
Hotel 13.6% -25.7% 16.2% 9.1% 4.6%
Car rental -18.0 -17.6 -14.8 -14.9 -6.7 1 Fight the irrational need to "Kill the competition whatever it takes."
Computer 142.2 -42.6 17.6 -39.5 -39.8 2 Focus beyond bids and position. Enhance relevance of landing pages, segment your clickstream
Bicycle 30.0 35.7 16.7 -4.8 -10.0 and then you'll be able to afford top position when it counts.
Automobile 11.4 12.6 12.8 19.8 20.0 3 Test your ad creative because after the Yahoo "Panama" launch all the engines will reward good
creative.
Viagra -18.0 12.0 7.9 -35.5 -35.3
4 Test landing pages regularly.
Sopranos 31.3 287.5 13.3 0.0 10.0
5 Go beyond "search sales" to "search marketing" by factoring in offline conversions, lagged
Subaru Forester 8.5 41.7 42.3 42.9 58.7
conversion and the branding that occurs early in the buying funnel.
Real estate San Francisco 116.2 107.7 108.7 107.8 111.0
6 Apply the same best practices in segmentation to your search campaign as you would any
Starbucks -6.3 -32.3 -33.3 -46.7 -30.0 marketing campaign.
34 | Advertising Age | Search Marketing Fact Pack

SEARCH SELLS Now marketers finally have a


tool to understand the rapidly
changing digital media landscape
BEST & WORST PERFORMING ONLINE AD TACTICS With all the new digital media options emerging every day,
Source: Data from MarketingSherpa, January 2006 via eMarketer's Search Marketing I: Spending and
Metrics. "Best" refers to respondents who said the tactic performed "great" and "worst" refers to reaching consumers is more challenging than ever. Ad
respondents who said they were "disappointed" in the tactic's performance. Age’s Digital Fact Pack is loaded with usable data, stats
and intelligence to help marketers understand all the
% RESPONDING % RESPONDING
digital media options, how consumers use them, and
RANK TACTIC BEST WORST
which ones deliver real ROI.
1 Paid search ads 52% 8%
2 E-mail house list 47 9 DISTRIBUTION ONLINE
3 Rich media ads 38 21 available for 12 months to AdAge.
4 Behavioral targeting 36 23
com’s 95,000 weekly unique users
5 Search engine optimization 33 14 PRINT
6 Contextual targeting 31 19 distributed with April 23rd issue of
Ad Age to all 56,000 subscribers
7 Affiliate marketing 29 22
8 Text link ads 23 20 Subscribe to Ad Age and get your copy of the Digital Fact
9 Pop-ups, pop-unders 22 39 Pack: adage.com/adage.com/subscribe • Tel: 888.288.5900
10 Ads in e-mail newsletters 16 34
Advertise your own capabilities to help marketers utilize
11 Banner ads 14 39 digital media to build their brands: Suzanne Hermalyn, Director,
12 E-mail rented lists 10 52 Business Development • Tel: 508.497.8688 • shermalyn@crain.com

U.S. SEARCH MARKETING CONVERSION RATES FOR PAID


SEARCH ADVERTISING VS. SEO BY CAMPAIGN GOALS
Source: Data from MarketingSherpa, March 2006 via eMarketer's Search Marketing: Players and
Problems, April 2006. N=3,271 SEM marketers & agencies and 776 affiliate marketers & merchants.
When gathering registration data was the goal, paid search outperformed SEO; when a service pur-
chase was the goal, SEO performed better.
PERCENT CONVERSION RATE
CAMPAIGN GOALS PAID SEARCH SEO
Registration data 5.7% 5.2%
Specific action taken 4.3 3.9
Delayed e-commerce or service purchase 4.2 6.3
E-commerce product or service purchase 3.8 4.1
Fact Packs Industry Rankings Surveys Online Data Center
Offline conversion 3.6 2.8
Average 3.6 4.2 © 2006 Crain Communications Inc.
36 | Advertising Age | Search Marketing Fact Pack

SEARCH ENGINE MARKETING PROGRAM SUCCESS REAL-TIME NEWS AND ANALYSIS


Source: Data from IntelliSurvey & Radar Research commissioned by SEMPO, Dec. 2005, via
eMarketer's Search Marketing: Spending and Metrics, April 2006. N=553; 72% of respondents are from WHENEVER, WHEREVER, HOWEVER YOU NEED IT
North America. Metrics tracked by search engine advertisers & agencies worldwide. The three metrics
most tracked by search engine advertisers are increased traffic volume to their web sites, conversion
For complete access, subscribe now at adage.com/everywhere2
rates and clickthrough rate. Cost per click is tracked by 55% of advertiser respondents, more than
return on investment, which is tracked by 47%.
PERCENT OF RESPONDENTS
RANK METRIC ALL ADVERTISERS AGENCIES

1 Increased traffic volume 80% 71% 85%

2 Conversion rate 76 65 80

3 Clickthrough rate 69 57 74

4 Return on investment 62 47 70

5 Cost per click 60 55 63

6 CPA 54 39 62

7 Total number of online sales 52 41 57

SEARCH ENGINE USERS MOST INFLUENCED BY SEARCH


ENGINE ADVERTISING FOR PURCHASE DECISIONS BY
SEARCH & PURCHASE CATEGORY
Source: Notes: Data from BIGresearch, Dec. 2005 and iMedia Connection, Feb. 2006 via eMarketer.
Multiple responses allowed. *Includes food, cleaning & beauty.
PERCENT OF RESPONDENTS BY ENGINE
CATEGORY GOOGLE YAHOO MSN AOL ASK ALL

Electronics 30.5% 27.5% 24.9% 23.9% 20.8% 26.7%

Apparel 15.1 17.6 16.1 17.8 14.1 15.1

Grocery* 8.7 11.9 10.4 13.5 11.7 9.9

Home improvement 9.3 11.6 10.2 9.1 10.0 9.6

Cars & trucks 11.4 12.2 12.6 9.3 10.9 10.5

Medicines 6.4 7.7 7.4 7.5 7.6 6.6

Telecom services 10.3 10.1 10.1 9.7 8.5 9.6


Madison+Vine Ad Age Digital AdCritic.com Creativity Advertising Age
Eating out 9.0 10.9 9.7 9.0 8.4 9.1

© 2006 Crain Communications Inc. www.adage.com


38 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 39

6. External link development – get partners/affiliates/vendors linking to you,

WEB SITE in the way you want to be linked


Another example is a media company with 10 stations. They should link to each
other. More obviously, Federated Department Stores should link to all its stores,

OPTIMIZATION using very accessible pages with cross linking.

7. Blog: Get major link juice by squeezing your own corporate or trend blogs for
all they’re worth. Currently, just 6% of the Fortune 500s blog
TOP 12 SEO STRATEGIES FOR 2007 Self-explanatory.
From an interview with David Berkowitz, director of strategic planning at 360i, a New York-based search
marketing agency. Mr. Berkowitz offers these 12 tips for search engine optimization.
8. Tagging: Allow all your content to be tagged so it’s included everywhere tags
are found (del.icio.us, digg, reddit, flickr, Yahoo My Web, etc.)
Encourage your consumers and users of your site to tag your content. Give it
1. Use Google Base, a free version of paid inclusion; optimize feeds for it additional visibility by facilitating the tagging of the data. For example, on every
Try this: In Google, type in “Used cars.” A link above the natural search results story there should be a “digg” link. Major media should be embracing this, so
will offer you a link to “Refine your search to used cars.” Click on the link. The should retailers. Adding to digg can be a huge asset. It drives traffic.
results are a prepared feed with no web link. They were uploaded en masse, and
automatically became part of the Google Base. Google is populating its main
search engine with links to Google Base. Searchers get “hyper-relevant results” 9. Social media optimization: Leverage all the links and marketing value you can
as if to say Google knows some results that are even more relevant than what get from social networks and business networks
our algorithm found. http://base.google.com. It’s in Beta. Exploit the viral nature of your appearances on other sites. Make sure there are
links back to your site. If you’re creating the other sites, enhance the long-term
value of the subsites.
2. Optimize anchor text – the copy within hyperlinks
Make sure the text in the link is relevant, and doesn’t just say “click here.”
Search engines pay more attention to links and their anchor text. 10. Google Co-Op: Become an authority and offer a syndication channel through
this service for limited but valuable natural search rankings
Anyone can declare themselves an expert and create links to their category.
3. Blog PR – get bloggers on board, and if they bite, they’ll link to you Http://google.com/coop (also in Beta) offers a powerful way to get web sites on
Have a blog and have bloggers refer to your site. This is a public relations activ- top of the search results. When users subscribe, if they search in the topic, you’ll
ity. Be front and center in blogger’s minds. come up on top of the natural search rankings, even higher than Google base.

4. mRSS – Media RSS, the syndication vehicle for video 11. Wikis: Host a link-rich wiki and encourage others to share their knowledge in
Make sure your video is RSS capable. You can submit feed to Yahoo. mRSS is the process
likely to become standardized. Metadata attached to it makes it easier to syndi- Create a wiki for your topic for your site. Combine your encyclopedic knowl-
cate. Tags indicate size of file and video. search.yahoo.com/rss edge of your industry with user generated content.

5. Microcontent – tap into the new way search engines are indexing the web 12. Long-tail optimization – optimize around certain valuable long tail keywords
semantically people are using to find you
Defining a piece of content as a review, an overview, contact information or loca- Look at how people are finding your site. Make sure you know what site they
tion allows engines to more easily classify content. There’s more information at came from and what keywords they used to find you. Using that knowledge,
http://microformats.org/, which has a wiki. Items called hcards act just like make sure there’s content like an occasional blog post, writing now and then
vcards, and allow your computer to add someone’s contact information. Yahoo about what you were searched by. Build out on products users were searching
locally uses microformats, so if an item is tagged as a restaurant review, it’s more for when they found you. As searches become more complex, optimize more
likely to appear at the top of local search for dinner. complex combinations of those words.
40 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 41

A COMPARISON OF FIRST SCANS AND FIRST CLICKS


EYE TRACKING Percent of clicks in each area based on the first eye scan on a Google page
Source: Enquiro. This table should be read to say 52.7 percent of searchers who first scanned the top
THE GOLDEN TRIANGLE AND THE GOOGLE EFFECT organic result clicked the top organic result. See notes on facing page. 1 Includes top 4 organic listings; 2
Includes all organic listings lower than 4th place; 3 Includes going to next page, new searches and other
choices such as clicking on image or Froogle.
From a 2006 study by Enquiro Search Solutions, and Yahoo users seem to find what they’re look- AREA OF FIRST CLICK/ TOP ONE TOP SIDE BOTTOM
the diagrams illustrate areas of “intense eye scan ing for faster on Google; Google appears to be AREA OF FIRST SCAN SPONSORED BOX ORGANIC1 SPONSORED ORGANIC2 OTHER3
activity” on the search results pages for Google, perceived as more relevant; Information scent
Yahoo and MSN. The study examines where eyes and thin slicing are likely factors in this; Portal Top sponsored results 25.8 0.0 37.1 6.5 9.6 21.0
anchor and which results users click. pages introduce the eyes to the search results
The Golden Triangle is the brightly colored page in more positions. Gord Hotchkiss, president Google OneBox 11.5 15.4 46.2 3.9 0.0 23.1
area in the search page, where, according to the and CEO of Enquiro and chairman of SEMPO,
research, the odds of being noticed by a searcher says a 2006 edition of the study will be available Top organic result 7.5 1.1 52.7 0.0 18.3 21.5
are significantly better. The smaller the scan area, this fall at http://www.enquiro.com/eyetrackingre- Side sponsored result 0.0 0.0 25.0 75.0 0.0 0.0
the quicker the user found the right result and port.asp.
the more success-
ful the user experi-
ence. As can be
seen, the report
demonstrates a
"Google Effect,"
essentially the idea
that because
Google does a
good job of giving
searchers the
results they want
in the top position,
users have gotten
used to expecting
to find what they
want in the Golden
Triangle.
Among other
things, the study
reports the corre-
lation between the
first areas of eye
fixation and scan
with the first item
clicked by the
searcher (see
chart at right).
Some other pre-
miminary findings
of the study:
“Much more scan-
ning in MSN and
Yahoo than
Google; Even MSN Google Yahoo MSN
42 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 43

LOCAL SEARCH HOW TOP 3 LOCAL KEYWORDS PLAY IN 12 CITIES


SHARE OF LOCAL SEARCHES BY SITE Source: Borrell Associates. The table shows the percent of “local results” on the first results page when
using the keywords in addition to the city name. “Local” advertisers are defined as those giving local
Source: comScore Networks, which defines local searches as those “conducted by consumers on the contact information. The markets were selected by Borrell.
local or directory (Yellow Pages) sections of leading search sites and other searches identified as having
local intent.” PERCENT OF LOCAL RESULTS
REAL ESTATE RESTAURANTS DENTISTS
RANK SITE SHARE CITY GOOGLE YAHOO GOOGLE YAHOO GOOGLE YAHOO
1 Google sites 29.8%
All Chicago 66.7 64.3 81.8 81.8 33.3 58.3
2 Yahoo sites 29.2 other Google
15.0% sites 29.8% San Diego 50.0 64.3 70.0 0.0 44.4 36.4
3 Microsoft sites 12.3
4 Time Warner network 7.1 Verizon Houston 63.6 30.0 55.6 30.0 50.0 72.7
Comms.
5 Verizon Communications 6.6 6.6% Denver 54.5 58.3 66.7 36.4 54.5 54.5
6 YellowPages.com 3.9 Time
Norfolk, Va. 54.5 45.5 37.5 33.3 22.2 20.0
7 Ask network 2.7 Warner
network 7.1% Yahoo Nashville 50.0 41.7 25.0 50.0 22.2 20.0
8 Local.com 1.9 sites 29.2%
Microsft
9 InfoSpace network 1.9 sites 12.3% Des Moines 50.0 54.5 25.0 10.0 22.2 20.0
10 DexOnline.com 1.4
Tampa, Fla. 80.0 50.0 40.0 33.3 33.3 45.5
11 All other 3.2
Toledo, Ohio 54.5 38.5 25.0 57.1 27.3 30.0

Dothan, Ala. 25.0 27.3 50.0 0.0 14.3 55.6


TOP KEYWORDS IN LOCAL SEARCHES Newark, N.J. 40.0 0.0 33.3 37.5 40.0 80.0
Source: Borrell Associates. from a March 2006 report: “Local Advertisers Plow $1 Billion into Search.”
Keywords are used in conjuction with city and local market names. Borrell searches more than 2,100 ads Tyler, Texas 30.0 36.4 50.0 33.3 14.3 20.0
on city-related terms on Google and Yahoo. The high bid was determined using Yahoo’s View Bid tool.

PERCENT HIGHEST
RANK TERM LOCAL HITS LOCAL BID

1 Real Estate 49.6% $5.11 U.S. LOCAL ONLINE AD SPENDING FORECAST BY SEGMENT
2 Restaurants 43.3 0.80 Source: Estimates by JupiterResearch, July 2005, via eMarketer's Search Marketing 1: Spending and
3 Dentists 38.6 5.61 Metrics, April 2006.
4 Computer Repair 38.4 3.17 ADVERTISING SPENDING IN BILLIONS OF DOLLARS
SEGMENT 2006 2007 2008 2009 2010
5 Plumbers 38.4 3.01
6 Lasik 36.2 10.30 Local classifieds $2.6 $2.9 $3.1 $3.4 $3.6
7 DUI Attorney 32.5 38.00
Local search 0.7 0.7 0.8 0.9 0.9
8 Hotels 28.3 1.92
Local display 0.4 0.5 0.6 0.7 0.8
9 Cars 25.8 7.95
10 Mortgages 25.1 14.99 Total 3.7 4.1 4.5 5.0 5.3
44 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 45

MOBILE GLOSSARY
Source: Search Engine Marketing Professional Organization (Sempo)

SHARE OF MOBILE SEARCH BRANDS SEARCH ENGINE MARKETING (SEM): The entire set of techniques and strategies used to direct
more visitors from search engines to marketing web sites, including all of the tactics and
Source: M:Metrics survey of 34,006 U.S. mobile subscribers. Data based on three-month moving aver- strategies defined below.
age for period ending July 2006. Total subscribers are projected and include those who used a mobile PAID PLACEMENT: Text ads targeted to keyword search results on search engines, through programs
device to access a search engine ever in a month. In the pie, other represents 1.4%. such as Google AdWords and Yahoo Search "Precision Match," also sometimes referred to as "Paid
Placement," "Pay-per-Click" (PPC) advertising and Cost-per-Click (CPC) advertising.
RANK SITE SUBSCRIBERS SITE BY PERCENT OF TOTAL CONTEXTUALLY TARGETED TEXT ADS: Text ads targeted to the subject of writings on web pages,
such as news articles and weblogs, using programs such as Google's AdSense and Yahoo
1 Google 4,490,437 Search’s Content Match programs.
Don’t know Google 39.8%
PAID INCLUSION: The practice of paying a fee (fee structures may vary) to search engines and
2 Yahoo 3,839,826 5.1%
similar types of sites (e.g., directories, shopping comparison sites) so that a given web site or
Go2 web pages may be included in the service's directory, although not necessarily in exchange for
3 MSN Mobile/MSNBC 1,086,152 Search 3.8%
a particular position in search listings.
4 AOL Mobile 692,651 AOL 6.1% ORGANIC SEARCH ENGINE OPTIMIZATION (SEO): The practice of using a range of techniques,
including augmenting HTML code, web-page copy editing, site navigation, linking campaigns
5 Go2 Search 433,830 and more, in order to improve how well a site or page gets listed in search engines for partic-
MSN 9.6% ular search topics.
Don’t know 572,149
Yahoo 34.1%
Other 154,752

Total 11,269,797

MOBILE WEB NEWS ACCESS AND SEARCH TRENDS


Source: M:Metrics survey of 34,006 U.S. mobile subscribers. Data based on three-month moving aver-
age for period ending July 2006. Total subscribers are projected and include those who used a mobile
device to access news and information and a search engine ever in a month.
PROJECTED SUBSCRIBERS WHO ACCESSED SEARCH AS
THREE MONTH AVERAGE ENDING NEWS SEARCH % OF NEWS

November 2005 22,819,352 8,135,001 35.6

December 23,978,160 8,933,913 37.3

January 2006 24,525,863 9,179,223 37.4

February 24,318,079 8,938,209 36.8

March 23,974,393 8,423,768 35.1

April 23,618,851 8,174,914 34.6

May 25,112,678 8,437,085 33.6

June 25,582,471 8,685,653 34.0

July 26,669,102 9,076,904 34.0


46 | Advertising Age | Search Marketing Fact Pack

CLICK FRAUD
A SEMPO SURVEY
Source: Data from Search Engine Marketing Professional Organization (Sempo) survey of SEM agencies
& advertisers, Dec. 2005. Click fraud is the practice of generating clicks on ads or links to advertiser
websites in order to boost per-click revenue paid by the advertiser to the search engine and, therefore,
the third party network partners who generated the fraudulent clicks. Although search engines do reg- For Marketing, Advertising & Media News, Insights, Trends & Data
ularly pay make-goods back to advertisers when they discover such practices, litigation can ensue. A
July 2006 legal settlement cost Google $90 million in click fraud make-goods. Advertising Age (adage.com) To advertise: Millie Chiavelli, Advertising Director,
ADVERTISERS Tel: 212.210.0280, mchiavelli@crain.com
LESS THAN 500 MORE THAN 500 Ad Age Digital (adage.com/digital)
ALL EMPLOYEES EMPLOYEES AGENCIES To subscribe or to sign up for newsletters:
Ad Age Daily News E-mail (adage.com) Call 888-288-5900 or go to adage.com/subscribe
In your experience, how much of a problem is click fraud with regard to paid placement?
MediaWorks (adage.com/mediaworks)
Significant problem we have tracked 16.0% 18.0% 9.0% 16.0%
Madison+Vine (madisonandvine.com)
Moderate problem we have tracked 23.0 21.0 29.0 33.0
We have not tracked, but are worried 35.0 34.0 38.0 33.0
Not a significant concern 25.0 27.0 18.0 18.0 For the latest news & reviews of the best creative work in marketing & advertising…
Never heard of it 2.0 0.0 6.0 0.0 Creativity (adcritic.com) To advertise: Adam Gold, Advertising Director,
Note: Advertisers N=122; agencies N=282 Tel: 212.210.0241, agold@crain.com
AdCritic (adcritic.com)
Have you been a victim of click fraud? To advertise in Spark*: Juliette Robin,
Spark* (creativityspark.com)
Yes 42.0 46.0 32.0 51.0 Managing Director, Tel: 212.210.0156,
No 21.0 18.0 27.0 49.0 Creativity E-mail Newsletters jrobin@crain.com

Don’t know 38.0 36.0 36.0 0.0 – TV Edition To subscribe or to sign up for newsletters:
Note: Advertisers N=122; agencies N=282 Call 888-288-5900 or go to adcritic.com
– Print & Design Edition
What type of click fraud did you experience?
– Interactive Edition
Competitive click fraud 53.0 53.0 55.0 41.0
Attempts* to inflate rev. through non-authentic 78.0 78.0 82.0 59.0 Plus…
Note: *By publishers or networks. Advertisers N=51; agencies N=145
Ad Age Group Events – for information on events, go to adage.com/events. To sponsor an event: Millie
Have you received incremental credit from a paid search provider for click fraud? Chiavelli, Advertising Director, Tel: 212.210.0280, mchiavelli@crain.com

Yes 78.0 78.0 82.0 72.0 Ad Age Group Custom Programs – to develop your own branded custom program: Suzanne Hermalyn,
No 22.0 22.0 18.0 29.0 Director, Business Development, Tel: 508.497.8688, shermalyn@crain.com
Note: Advertisers N=51; agencies N=145
Reprints – Dawn Kryston, FosteReprints, Tel: 866.879.9144, x170, dkryston@fosterprints.com
Was credit based on your request, or was the credit engine initiated?

Based on your request 40.0 39.0 44.0 60.0


Engine initiated 60.0 61.0 56.0 41.0 Madison+Vine Ad Age Digital AdCritic.com Creativity Advertising Age
Note: Advertisers N=51; agencies N=145
© 2006 Crain Communications Inc. www.adage.com
48 | Advertising Age | Search Marketing Fact Pack Search Marketing Fact Pack | Advertising Age | 49

ESTIMATED SEM/SEO 2

AGENCIES RANK

10
AGENCY, HEADQUARTERS

Acronym Media New York


REVENUE

10.0
% CHG

125.0
EMPLOYEES

Acronym Media specializes in SEO, paid search, search analytics, link building and international SEM. Its
56
M
ag
th
G
TOP 20 SEARCH ENGINE AGENCIES paid/natural revenue split is 60/40. The agency, which manages 200,000-plus keywords, serves clients SAP, Four
Seasons Hotels, Humana, Sirius Satellite Radio, Register.com, WebMD, Cablevision and Paltalk. The agency has
To
2
Source: Revenue, estimated by Ad Age, is in millions. Returns for ranking are just from search engine three U.S. offices and one in Singapore. Top exec: Anton E. Konikoff, CEO. URL: www.acronym.com
A
marketing and optimization for 2005. Only agencies whose primary discipline is search are included. 11 Search Engine Optimization Inc. Carlsbad, Calif. 7.9 315.0 65 m
SEO Inc., an integrated search engine marketing agency, carries a paid/natural revenue split of 75/25 and has Se
ESTIMATED SEM/SEO
200,000 keywords under management. Clients include Entrepreneur Media, IGN, Beaches and Sandals resorts. un
RANK AGENCY, HEADQUARTERS REVENUE % CHG EMPLOYEES Top exec: Garry Grant, CEO. URL: www.seoinc.com P
1 Performics Chicago $57.0 28.0 230 12 Reprise Media New York 7.1 300.0 56
Performics, the marketing division of New York-based DoubleClick, provides online marketing services (search Reprise Media is a three-office SEM/SEO agency that serves clients FT.com, PeoplePC, Capital One, USA Today,
engine marketing, data feed and affiliate marketing) to large retailers, catalogers and direct marketers that Guess?, Microsoft and Advance Internet. Reprise has a paid/natural revenue split of 70/30. The agency has 30
include AOL, Bose, L.L. Bean, Crate & Barrel, Kohl’s, Countrywide Financial and United Airlines, among others. million-plus keywords under management. Top execs: Peter Hershberg and Joshua Stylman, mng ptnrs. URL:
Top exec: Stuart Frankel, pres. URL: www.performics.com www.reprisemedia.com
2 iCrossing Scottsdale, Ariz. 46.0 100.0 240 13 Oneupweb Lake Lelanau, Mich. 6.5 163.0 40
iCrossing manages 11.2 million keywords. The agency has six offices. Clients include General Motors, Dex, Office Oneupweb, an SEM/SEO agency also involved in podcasting, online media planning, creative services and online
Depot, Omaha Steaks and Colgate-Palmolive. Top exec: Jeffrey Herzog, CEO. URL: www.icrossing.com market research, manages 500,000 keywords and draws most of its revenue from search, the paid/natural rev-
enue split being about 45/55. Clients include Unisys, Maritz, Brooks Running, Lang, 1-800-Got-Junk?, and French
3 iProspect Watertown, Mass. 23.2 59.0 115 Culinary Institute, among others. Top exec: Lisa Wehr, CEO & founder. URL: www.oneupweb.com
iProspect, part of Isobar global network under Aegis-owned Carat, has a paid/natural revenue split of 45/55.
Clients include iVillage and Panasonic. Top exec: Fredrick Marckini, CEO & founder. URL: www.iprospect.com 14 Resolution Media Chicago 6.5 100.0 40
Resolution Media, a unit of Omnicom Group, is involved in search marketing, optimization, search retargeting,
4 SendTec St. Petersburg, Fla. 19.6 44.0 125 web analytics and merchandising consulting. Clients include Bank of America, Chicago Tribune, FedEx, Lowe’s,
SendTec generated 35% of its $56 million in revenue from search work, the rest coming from offline DR TV Universal Orlando Resorts, XM Satellite Radio among others. It manages 5 million keywords. Top exec: Matt
media buying services and online and offline strategic marketing. The agency has three offices. Clients include Spiegel, mg dir. URL: www.resolutionmedia.com
TiVo, BlackBerry, Home Depot, Ubid.com, AAA and Lancome. Top exec: Paul Soltoff, CEO. URL: www.sendtec.com
15 Search Agency Santa Monica, Calif. 5.2 400.0 30
5 360i New York 18.6 33.0 103 Search Agency, with $38 million total billings, has a paid/natural revenue split of 60/40. The shop manages 13
360i, with four U.S. offices, became part of Innovation Interactive, a holding company, in June 2005. 360i has a million keywords. Top exec: David Hughes, CEO. URL: www.thesearchagency.com
paid/natural revenue split of 67/33. Agency clients include Office Depot, Levenger, Saks and JC Penney among
others. It manages 3.8 million keywords. Top exec: Bryan Wiener, pres. URL: www.360i.com 16 Fathom SEO Valley View, Ohio 5.0 100.0 35
Fathom SEO, whose primary emphasis is SEO link-building, serves clients Cleveland Clinic, Career Education
6 Efficient Frontier Mountain View, Calif. 13.6 NA 80 Corp., Sauder Woodworking and Bissell, among others. Top exec: Bill Fox, pres & CEO. URL: www.fathomseo.com
Efficient Frontier handles more than $200 million in annual pay-per-click spending and holds more than 20 mil-
lion keywords under management. The agency also has a London office. Clients include Amazon Services, 17 Outrider St. Louis 4.3 52.0 50
BabyCenter, BuildDirect, E-Loan, Fox Interactive and LendingTree. Top exec: Ellen Siminoff, pres & CEO. URL: Outrider, which bills itself as the first search marketing company (it was founded in 1995), is WPP Group’s desig-
www.efrontier.com nated search marketing agency of GroupM, WPP’s media-buying and planning arm. Outrider manages 50 million
keywords. Clients include Sears, Xerox, Microsoft, Jaguar, Showtime and MetLife among others. Outrider has
7 Avenue A/Razorfish Seattle 11.7 116.0 843* three U.S. shops and offices in 14 countries. Top exec: Chris Copeland, sr ptnr & mng dir. URL: www.outrider.com
Avenue A/Razorfish, a unit of aQuantive, is a broad-based agency with overall revenue of $189.8 million in 2005;
some 28% of U.S. media billings of $418 million in 2005 came from search. The agency has 11 U.S. offices and 18 Red Door Interactive San Diego 3.0 150.0 35
three foreign shops. Clients include AstraZeneca, Best Buy, Alaska Airlines, Disney, Samsung, Mercedes-AMG, Red Door is a search agency also involved in print, offline marketing, signage and packaging. Clients include
Capital One, Starwood Hotels, Dell and Chase among others. Top exec: Clark Kokich, worldwide pres. URL: Buck Knives, Leap Wireless and Souplantation, among others. Top exec: Reid Carr, pres. URL: www.reddoor.biz
www.avenuea-razorfish.com *total for entire agency 19 Enquiro Kelowna, B.C. 1.8 20.0 20
8 Impaqt Bridgeville, Pa. 10.5 110.0 61 Enquiro, an SEM/SEO shop, also is involved in PPC management, reporting, conversion enhancement, usability
Impaqt serves a clientel largely in the retail, travel, B2B, insurance, education, pharmaceutical and finance testing and qualitative user research. Enquiro’s paid/natural revenue is split 35/65. The agency manages 10,000-
industries. Impaqt has a paid/natural revenue split of 45/55. The agency, with three U.S. shops, has more than plus keywords. Clients include LexisNexis, AIG, Apartments Across America and eplans.com, among others. Top
200,000 keywords under management. Top exec: Richard Hagerty, CEO & founder. URL: www.impaqt.com exec: Gord Hotchkiss, pres. URL: www.enquiro.com
9 Did-It Search Marketing Rockville Centre, N.Y. 10.3 106.0 105 20 Kinetic Results Addison, Texas 1.4 NA 8
Did-it is a search marketing and auction-media management agency. Did-It has 22 million keywords under man- Kinetic Results, founded in 2005, had billings of $11.2 million, $9.7 million of that from search. Of the search
agement. Clients include E*Trade Financial, Dun & Bradstreet and Cingular Wireless. Top exec: Bill Wise, CEO. tally, the paid/natural split was 75/25. Kinetic manages 15 million-plus words. Clients include Hilton Hotels,
URL: www.did-it.com Gateway, Compass Bank and Samsung Electronics. Top exec: Kevin M. Ryan, CEO. URL: www.kineticresults.com
50 | Advertising Age | Search Marketing Fact Pack

MISCELLANEOUS
TOP SEARCH TERMS KEYWORD BREAKDOWN
DRIVING TRAFFIC TO From Hitwise for four weeks ending Sept. 30. The
table shows the percentage of successful search
YOUTUBE.COM terms used on the internet - broken down by the
number of search terms in a search phrase.
From Hitwise for four weeks ending Sept. 23,
2006, excluding YouTube branded terms. PERCENT

RANK TERM 1 word 23.44%


2 words 26.25
1 steve irwin death video
3 words 21.02
2 myspace
4 words 13.37
3 shakira
5 words 7.40
4 steve irwin video
6 words 3.89
5 animesuki forums
7 words 2.03
6 videos
8 words+ 2.59
7 steve irwin’s death video
8 lonely girl 15
9 chicken noodle soup RESULTS VIEWED BY U.S. Smart Online Marketers
10 steve irwin
SEARCH ENGINE USERS Know Where to Find the
11 chicken noodle soup dance
12 evolution of dance
BEFORE CLICKING ON ONE— Right Answers.
13 steve irwin stingray video BY PERCENT OF RESPONSES When you need the latest facts, figures and analysis on online marketing
14 faith ford feet Source: iProspect via eMarketer. and advertising, there is one place to find them. No one has more up-to-
15 chicken noodle soup video 2004 2006 date information – from over 2,000 sources around the world – anywhere.
No one provides clearer analysis. And no one makes it easier to access.
16 giantess Only a few 24% 23%
17 giantess / car crushing First page 36 39 For a demonstration of how an eMarketer subscription can help you
18 naruto First two pages 20 19 make smarter, better-informed business decisions for your company –
and your clients’ companies – contact David Iankelevich at 212-763-6037
19 video of steve irwin’s death First three pages 8 9
or sales@emarketer.com.
20 sora & kairi More than three pages 13 10

TO REACH US
By e-mail: This report was compiled by Advertising Age in Chicago. Contact DataCenter@AdAge.com; Postal
mail: Advertising Age , 711 Third Ave., New York, N.Y. 10017; Phone: (212) 210-0100. Subscription and print sin- 800-405-0844
gle copy sales (888) 288-5900; Advertising (212) 210-0159; Library services (312) 649-5476. DataCenter staff: sales@emarketer.com
R. Craig Endicott, Kevin Brown, Scott MacDonald, Maura Wall, Mike Ryan, Maureen Morrison. ® www.emarketer.com

©2006 eMarketer Inc. All rights reserved.