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What To Expect

From This Report.
This report is a first of its kind. Never That's probably more than there are on
before in India or indeed in any other all TV channels. Consider these And What Not To.
geography in the world that we know of numbers - over 1 billion searches a
has anybody used technology to this month, over 300 million searches with
extent to discern knowledge about the ads on them, almost 5 million clicks on
search engine marketing business. ads every month. Search marketing has
come of age in India.
The first thing to say is that this report
is an estimate. We did not get any data Some highlights: Rs. 230 crores of ad
from the search engines (who are spend on this media is aimed at
famously quiet about disclosing their Indians alone. Of this, about a third,
numbers anyway) or the advertisers over Rs. 70 crores is spent by Indian
(who like to be just as quiet). What we companies. For an industry that barely
did was analyse all data that was in the got off the ground a couple of years
public domain by running searches, ago, it's a huge leap.
noting the presence of ads by
advertisers, assigning a value to those There are three types of spending on
ads from experience, and making some search: 1. Indian companies spending
rather involved calculations. In effect we in India. 2. Overseas companies
did the online equivalent of what a spending in India and 3. Indian
TV Ad Index or media auditor does. companies spending overseas. We've
restricted ourselves to the first two
We checked the results against some categories and this report is about
real-life data, and we’re comfortable Indian companies aiming at Indians.
with the findings.
We also defined ‘Indian company
There is more than one reason why spending in India’ not as a company of
these are just estimates. Apart from the Indian origin, but as a one with
reluctance of the engines and the operations here. Our assumption is that
advertisers to talk numbers, there is the there is local involvement in all spend
issue of mathematical approximation. aimed here. Hence, eBay.in counts as a
We are aware of the extent of local company while eBay.au, also
assumptions here, and have tried to advertising to Indian surfers, does not.
restrict their effect to a minimum.
A note of thanks. An enterprise of this
Third, most search practitioners will scale wouldn't have been possible
know that if you've been advertising for without the help of some very smart
a while, you have the benefit of ‘history’ people. A big hand to Dr. V. Vinay,
where you get a higher rank for the price Pinstorm's technology guru (with flowing
you pay compared to what a new locks to match) who wrote much of the
entrant would pay today. Our prices code and algorithms to make these
reflect what today's costs are as calculations possible. A doff of the hat
opposed to what you paid when you got to Akshay Surve, Ansoo Gupta, Hanisha
in. If you feel your spend here is Vaswani, Harish TM, Indrojit Chaudhuri,
overstated, that's probably the reason. Milan Zaveri, Netra Parikh, Nikhil Sheth,
Ratan KK and Reshma Nayak - some of
The best way to use this report is to the other Pinstormers who temporarily
not be fixated on absolute numbers, gave up sleep and sanity to make this
but on relative comparisons. That's report happen. And to the redoubtable
where there are lessons to be learned. Subho Ray of the IAMAI, Doc, here’s to
making history together!
But first look at the industry! It's grown
from nowhere to have over 40,000
advertisers targeting Indian web users. – Mahesh Murthy, CEO, Pinstorm

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Methodology:
How This Report
Google is one of the more secretive 5. We then used the same keywords,
Was Created companies on the planet. Till and ran them in the search engine's
September 2006, it was the primary traffic estimator. We obtained an
search engine that allowed pay-per-click estimation of clicks, figured an
advertising to marketers aiming at estimation of cost and also an
Indian audiences. It was an uphill task estimation of search volume through
to find the scope and scale of the Indian a unique process.
search advertising industry, given that
there was little help forthcoming from 6. We applied some interesting
the source. mathematical functions to estimate
what each advertiser was paying in
Things on the Internet however can be each position for their ad on that
seen and measure, so that's exactly keyword.
what Pinstorm did. To clarify again, none
of the numbers here are in any way 7. We then collated over 2 million lines
provided by or a representation from of data, and presented it in a form
Google or any other search engine. that made sense to us ordinary
These are all estimates derived from mortals, and not just to Ph.D.s in
publicly-available data. Computer Science.

Further, this report represents a 8. We checked out the data against our
snapshot in time: August 2006. If your own experience. We called a couple
campaigns ended or started after this of other advertisers and litmus-tested
date, you won’t find them represented it by them. Each said, “hmm, that
here. We’ve taken data for this month doesn’t sound too wrong”.
and extrapolated for the year.
So, here we are, many nights, many
Specifically, here's what we did: cups of Barista coffee, Punjab Sweet
House samosas and Snack Shack sali
1. Pinstorm created a “long tail” of over botis, many lines of code and charts on
461,000 keywords across various Excel later.
industry segments that were relevant
to Indian web users. Ladies and Gentlemen, the report.

2. We ran searches on these keywords.

3. We noted every single ad that was
displayed, by every single advertiser,
in every single position, across all
these 461,000 keywords.

4. At the end of this effort, we had
counted over 2 million ads placed by
over 41,000 advertisers. Now we
knew which advertiser had bought
what keywords and what positions
they were on.

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Search Marketing:
The Big Picture
Searches by Indians every month Over 1 billion

Searches by Indians that result in sponsored links
shown, every month 308 million

Total clicks on sponsored links by Indian users
in a month Over 4.8 million

Number of advertisers targeting Indian web users: Over 40,000

Total annualized spend by all advertisers
targeting Indian users Rs. 236 crores (US$52m)

Total annualized spend by Indian advertisers
targeting Indian users Rs. 72 crores (US$16m)

Most amount spent by one advertiser Rs.9.7 crores (US$2.2 m)

All brands that spend more than
Rs. 10 lakhs a year in India 291

Indian brands that spend more than
Rs. 10 lakhs a year in India 90

Average number of keywords bought by a brand 42

Most keywords bought by a brand 89,377

Most clicks bought by a brand in a month 599,968

Average cost per click paid by advertiser in India Rs. 16.20 ($0.36)
Thee IAMAI estimates
that there were 37m
Highest cost per click paid by advertiser in India Rs. 266 ($5.92) internet users in India in
September 2006.
Average search campaign click-through rate 0.62%
This is expected to grow
to 42m by March 2007
and 52m by March
2008.

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Search Marketing:
The Key Players
Top Indian Search Buyers aiming at an Indian audience (by estimated spend)
In India
Advertiser Est. annualised spend

Naukri + 99acres + Jeevansathi INR 97,506,504
eBay* INR 92,726,532
Monster + JobsAhead INR 64,736,496
Google** INR 58,402,620
Yahoo INR 32,077,782
Citibank INR 27,201,096
HP INR 25,266,816
Worldspace INR 20,778,120
Shaadi + Fropper INR 15,130,962
Dell INR 12,803,346

* Includes spends by affiliates on behalf of eBay.
** The spend if Google were to pay for its own publicity

Indian search marketers targeting Indian audiences

Est. annualised spend, in Rs. crores

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Search Marketing:
The Key Sectors
Sectors among top 292 advertisers Est. annualised spend

Automotive INR 10,321,020
Banking, Financial Services INR 145,039,410
Dating, Matrimonial INR 31,681,530
Education INR 24,571,674
General online INR 227,842,308
Jobs INR 175,270,878
Media INR 41,113,170
Made-for-Adsense INR 155,725,416
NGO INR 11,697,696
Property INR 25,517,916
Retail, e-commerce INR 189,679,644
Technology INR 116,153,190
Travel INR 173,650,230

Search Engine Marketing
world wide cross the
US$ 10 bn mark in 2006
and is on its way to hit
US$ 23 bn by 2010.

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Sector: Banking &
Financial Services
Top Indian advertisers Est. annualised spend
Citibank INR 27,201,096
HSBC INR 11,978,280
ICICI Bank INR 9,216,828
ICICI Direct INR 7,631,820
SITM India INR 7,058,826
Sharekhan INR 6,413,742
ICICI Lombard INR 3,947,778
Tata Mutual Fund INR 3,443,472
IDBI Paisa Builder INR 3,089,016
HDFC Bank INR 1,927,152
HDFC Insurance INR 1,072,440

Est. annualised spend, in Rs.

Delhi is more expensive
than Bangalore, which is
more expensive than
Mumbai. But only in
search marketing terms.

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Share of spend,
share of searches,
Banking & Financial Services
share of clicks
Tata Mutual Funds

ICICI Bank Credit Cards
ICICI Lombard
ICICI Bank

Sharekhan

SITM India

ICICI Direct

HSBC

Citibank

Citifinancials

Keyword Portfolio

07
Sector: Banking &
Financial Services Est. Click Through Rates (%)

How does one reach
share traders?
Sharekhan advertises in Est. Cost Per Click (Rs.)
Gujarati on English
search results.

08
Keyword Coverage

Citifinancials Both HSBC
1710 720 520

Citifinancials Both ICICI Bank
2124 288 1021

How many keywords are
enough? You can never
have too many keywords.
Search engines recently
announced that almost
half of their search
queries have never been
asked before - you need
to keep adding to your
pile of keywords, just to
keep up to date.

ICICI Bank Both Sharekhan
1379 1241 4451

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Sector: Travel
Top Indian Advertisers : Estimated annualised spend (Rs.)

Over 85% of all
individual travel now
starts first from the trip
to the web. Est. Click Through Rates (%)

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Sector: Travel
Est. Cost Per Click (Rs.)

Travel sites routinely buy
and deploy over 3 million
keywords each on search
marketing campaigns.

Keyword Portfolio

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A report by IAMAI and Pinstorm
Keyword Coverage

Makemytrip Both Yahoo Travel
16332 7064 16308

Long phrases convert
better. Someone looking
for “Sea view hotel room
in Bombay” is making a
more precise and less
expensive request with
somebody just asking for
a “hotel room”
Makemytrip Both Indiatimes
22973 423 Holidays
437

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A report by IAMAI and Pinstorm
Sector: Jobs
Top Indian Advertisers : Estimated annualised spend (Rs. in Lacs)

Its not just job portals
that use search
marketing. Companies
now directly reach out to
candidates by using
search engines.
Est. Click Through Rates (%)

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Sector: Jobs
Est. Cost Per Click (Rs.)

Keyword Portfolio
(in thousands)

14
Keyword Coverage

Naukri Both Monster
26272 38648 25242

An interesting way to find
candidates using search
is by using keywords that
reflect their passions.
Putting an ad on the
keyword ‘fraunhofer
codec’ is likely to net you
and audio engineer.

Naukri Both Yahoo Jobs
50563 14357 2603

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Sector:
Technology Top Indian Advertisers : Estimated annualised spend (Rs.)

Why are tech companies
such big ad buyers on
the web? Because their
consumers first go online
to do some research
before they make a
purchase decision.

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A report by IAMAI and Pinstorm
Sector:
Est. Cost Per Click (Rs.) Technology

Today’s marketers don't
ask “Can I reach my
customer?” They ask
HP Both Dell instead “Can i be found
7387 1582 5685 when my customer is
searching for me?”

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A report by IAMAI and Pinstorm
Sector: Retail
Top Indian Advertisers : Estimated annualised spend (Rs. in Lacs)

Est. Cost Per Click (Rs.)

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A report by IAMAI and Pinstorm
Sector: Retail
Pinstorm Search Maximiser Index

What is Pinstorm Search
Maximiser Index?

Our way of measuring if a
campaign is over / under
performing. To do this, we
compare the clients’ share of
eBay Both Future Bazaar spend with his share of
50312 254 searches. For eg if Client X has
316
a share of spend of 20% and a
share of searches of 10% then
the campaign is likely to get a
score of -1 to 0. If however,
the campaign is more than
pulling its own weight and has
a 20% share of spend against
30% share of searches, this
will give the campaign a
positive PSMI value of 0 to +1.
An average performing
campaign scores a zero.
eBay Both Fabmall Under performing ones get
49932 380 1304 scores close to -1.
Outstanding ones score close
to +1.

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A report by IAMAI and Pinstorm
Sector: Dating &
Matrimony Top Indian Advertisers : Estimated annualised spend (Rs.)

Think of the web as a
singles bar of the 21st
century. A far safer place
to meet your match. Pinstorm Search Maximiser Index

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Sector: Dating &
Matrimony

Shaadi Both JeevanSaathi
1838 8676 18081

Marriage is big business
online. The new
generation of Indians is
turning to the net to find
their spouses
themselves.

Shaadi Both Bharat
4575 5939 Matrimony
5022

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Sector: General
Advertisers Top Indian Advertisers : Estimated annualised spend (Rs.)

Pinstorm Search Maximiser Index

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A report by IAMAI and Pinstorm
Keyword Coverage

Google Both Yahoo
6052 38 5913

Some of the biggest
advertisers online are
the big portals. Hoping to
attract traffic that stays
with them so that they
don't need to buy paid
search the 2nd time
around.
Yahoo Both Sulekha
5766 79 5872

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A report by IAMAI and Pinstorm
An Introduction
to Search Engines
Contrary to popular belief, Google did Depending on how you've set your
And Ranking not invent the search engine. preferences, you might be seeing
anything from 10 results (most
Search was first deployed by a site common) to 100 results per page.
called Altavista, more to demonstrate
the power of its parent company Results 1-100 of about 19,160,000,000
Digital's computer servers. Now that the
web is estimated to be in excess of 100 So it's really these top 10, 20 or 100
billion pages: more than 16 pages for results that matter to the user. And
each man, woman and child alive, it is every engine uses a different algorithm
essential to have an easy mechanism to or ranking formula to arrive at how to
categorise pages so they can be found pick and rank these top 10 or 100
by users looking for it. results. And their ranking formulae are
closely-guarded secrets.
What a search engine basically does is
to ‘crawl’ or ‘spider’ through the pages From an advertiser's point of view, if you
on a site and note all the words used in market a hotel in Bombay then you
the copy. Search engines are yet to would WANT to be found on the first
understand pictures, though they can page of results. Is this easy?
read and remember tags that are
Are you a high-ranker?
attached to pictures. The engines then
remember the content and location of When businesses figured out that
these pages on the world wide web. revenues depended on being ranked
highly by a search engine, an entire
For instance, a search for ‘hotel room in
industry called search engine
Bombay’ returned 5,750,000 results on
optimization (SEO) was born.
Google, 1,270,000 results on Yahoo
and 228,004 results on MSN in In the early days, it was easy to ‘game’
September 2006. or fool a search engine spider that
indexed your site. You stuffed your
With millions of result pages to choose
pages with words like ‘sex’ and ‘Pamela
from, it is likely any of these engines will
Anderson’ in a small font, in white
have the information you want. The real
against a white background, visible to
issue is however different.
the search engine but not to the user
Forget Page 3. Be on Page 1. and you'd get ranked high when a user
searched for those words.
No human being is likely to sift through
all of these results. In fact, research The engines have since become
indicates that very few go past the first smarter and started downgrading sites
page of results. that try to game them. It's now a cat-
and-mouse game to optimize a site to
So the search results that are critical rank higher in a search engine.
are not the millions spidered but those
that are displayed on the first page.

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A report by IAMAI and Pinstorm
Larry and his rank (Even today, a Page Rank, or PR as it's
referred to is described by Google for
The first breakthrough in ranking came many of the web's sites on a scale of 0
from a researcher at Stanford named to 10. For instance, Indiatimes and
Larry Page. Larry and his partner, Rediff have a PR of 7, Yahoo a PR of 9
Sergey Brin's thesis was about the and Google gives itself a PR of 10.)
concept of “reputation ranking” rating a
web page not by the frequency of words This innovation: reputation ranking -
on the page but by the “reputation” of gave better search results for the end-
the particular site. user. And Google quickly became the
world’s search engine of choice,
In effect they followed the very human displacing giants like Yahoo who had
belief that a person's reputation was started out in search years earlier.
dependent on the reputation of the
people who endorsed him. On the web, This has made it much harder for
Page's and Brin's work was to measure websites to feature on the left-hand side
a site's “reputation” by seeing the or organic side. Especially when a site
reputation of wants to be
those who linked featured for many
to it. which was different search
dependent on terms. To
who linked to continue the
them and so hotel example
forth. In effect, the Marketing
your site's Manager might
reputation, or be lucky to be
“Page Rank” was listed in the
the sum of “organic” results
reputations of other sites that linked to for “luxury hotel Bombay” but might not
you. make the top 100 list for “hotel rooms
Mumbai”. Or vice versa.
For instance, if there were two hotels in
Bombay but one of them was written up For all these reasons, there needed to
about in and had a link from the New be a quicker, more reliable way to get on
York Times site and the other didn't, it to the first page of search results for all
was likely that the former had a higher the terms you want to be on.
Page Rank than the latter and hence
turned up higher in the natural (also
called “organic”) search results.

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A report by IAMAI and Pinstorm
Buy Your Way
To Page 1:
Again, it wasn't Google that pioneered Most accomplished marketers now
Search Engine the placement of ads on search result deploy a combination of both search
Marketing pages. Overture had done so years engine optimization on a few keywords
earlier. and paid search also called Search
Engine Marketing - across the main
The innovation was simple: to allow brief.
advertisers to buy ‘sponsored links’ on
the results pages of words searched by Search Engine Marketing is now a
web users. The links are cleverly US$14 billion business (Rs. 63,000
designed to look like search results and crores). Over 99% of Google's revenues
research shows that many users don't come from selling ads - and it has
distinguish between the ‘results’ on the quickly overtaken online display
left-hand side and the ‘sponsored links’ advertising as the most preferred route
on the right-hand side of the page. for advertisers online.

Pinstorm studies show that between 5% Why is search marketing so hot?
to 40% of users on any search term
typically click on the sponsored links
instead of the ‘organic’ or natural
results. With search volumes reaching
into the billions a month, this is not an
insignificant number.

Sponsored Links Sponsored Links
Tropicana Resort
Relax in peace and tranquility away
from Mumbai’s congested city life.

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A report by IAMAI and Pinstorm
Search Marketing:
The Holy Grail:
Most marketers have a well-defined Unfortunately, your newspaper or TV has
target group. Their media agencies no idea whether you're in the market for
Right Audience,
prepare a media plan to address this a new product now. They show you ads Right Time
group. Given the fragmented nature of regardless of where in the buying cycle
media, no plan can address this group you are. This causes what we call
fully so every plan results in two FREQUENCY WASTAGE - getting the right
inefficiencies: audience at the wrong time.

i. Not reaching a part of the audience Search makes a huge difference here.
you want to reach. First, the ads are targeted only through
the words the users are searching for
ii. Reaching an audience that you did and you can choose the exact set of
not want to reach. search words to have your advertise-
ment appear on. So there is little or no
Both contribute to what we call REACH
reach wastage.
WASTAGE. Search makes its first impact
here. Second, the advertisement is shown
right at the moment and on the page
Think of every search by any web user
that the user is making the search so
an aspect of consumer demand felt by
there is no frequency wastage either.
that user. So if she's looking for ‘fashion
sale’ or ‘apartment in Barcelona’ or ‘Iyer To advertisers, search comes closest to
groom’, these are all representative of delivering the holy grail of targeting:
her needs or demands now. getting only the exact target audience
as determined by their search and
A marketer's dream is to synchronise
demand patterns and getting them only
their advertisements with a consumer's
at the time they're looking for informa-
demand. Let's say you're selling
tion and choices to make a buying
Mercedes Benz. You really don't want to
decision.
target a customer who just bought one
or bought the competition a month ago This is one reason why search has
as they're not likely to be in the market outstripped every other advertising
for a new car now. medium in human history. And why it
continues to grow at 35% a year.

People looking
Reach to buy now
Unreached wastage Frequency
audience Wastage

People looking
to buy now

Zero
wastage
Reached
through search
27
How Search
Marketing
Search engines aggregate audiences clicks a day, and your rival is bidding at
Works: All About that are pin-point addressable by their $1 a click and getting 12 clicks a day,
Clicks And Bids. search patterns at the time they're you are generating $15 a day for Google
searching. while he generates $12 so your ad will
be promoted above his.
Search engines then turn around and
sell these audiences to marketers. The This is further complicated by Google's
most common way is through the ‘click’. automated measurement of ‘landing
A click on your ad on a search result page quality’. Google spiders the page
page takes a user away from the search you intend to send users to and gives a
result and on to your page and this preference to actual fully-built sites with
‘click’ is what you pay for. good PR instead of single-orphan-page
landing sites with just a form. So if your
Search engines charge on a ‘pay-per- landing page is ‘more useful’ to the
click’ basis. user, you get a preference over a ‘blank
page with a form’ that your rival has.
Compared to traditional media, which
charges by the ‘eyeball’ or the viewer, The third differentiator is history or the
search takes it a step further - to charge ‘incumbent advantage’ if you've
by the person who has shown interest in historically been performing at a
your offering by leaving the search particular position, then Google gives
result page and coming to your web site. you an advantage over a Johnny-come-
In the AIDA process search gets beyond lately who has to outspend you on the
‘Awareness’, and to someone who same keywords to even come up to the
shows ‘Interest’. levels you are at.
Now to the ads on a search result page. This process of ‘bidding’ has been a
Typically the first ad gets more clicks boon for search engines getting them
than the second, which gets more than huge revenue growth and it has allowed
the third and so on. companies to get the positions they
want on the search terms they want, by
Instead of setting a flat-fee per click or
simply out-bidding the competition.
per position, the big difference was to
‘free float’ the price per click to a Typically, bidding starts at US$0.05 per
market bidding process. So if Hotel X, click and goes up from there. Per-click
Hotel Y and Hotel Z all wanted their bids of up to US$50 have been seen on
sponsored links to appear on a search some search terms from some
for ‘hotel room in Bombay’, the search geographies.
engine basically says “it's up to you guys
- I'll put whoever offers me most per With this huge range of bids (a 1000x
click on top.” difference between the top and the
bottom of the range) it is important for a
The truth is a little more complex, search advertiser to keep tight control
involving click-through rates and landing on what they're paying for.
page quality, but this explanation is
broadly correct. Because the price for an ad is not set by
the medium but by your competition, it
To make it more accurate, three more is easy to overspend. Hence it is critical
factors play a role in determining your for an advertiser to find search terms
position among the sponsored links. that are relevant to their consumers but
The actual number of clicks you that other advertisers have not
generate is one. For instance if you're discovered yet.
bidding at $0.50 a click and getting 30

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A report by IAMAI and Pinstorm
On Choosing
Keywords: Don't
‘The Long Tail’ is a phrase that has Y figures that competition is ripe for
emerged in recent consciousness. It those 5 phrases. He figures he doesn't
Be A Fat Head -
talks of the cumulative value of items want to enter into battle with all the Get A Long Tail
that are not on the best-seller or most- others for a top place and is happy with
popular lists. There is evidence to spending $0.50 per click to get a mid-
indicate that music companies make to-low position on these phrases.
more money from numerous non-hits Through this, he gets 1,000 clicks per
than they do from a few hits, for month. But Y also figures that there are
instance. Similar statistics apply to many phrases that may be searched
books, online merchandise - and search less frequently but that are also
keywords. relevant, and he picks 9,000 such
keywords that get him just one click a
Google released an eye-opening month each. Because no one else is
statistic that nearly 50% of all searches bidding on them, he is able to get these
have never been carried out before. This words at the minimum of $0.05 cents a
means the universe of search terms is click.
doubling all the time a classic example
of ‘long tail getting longer’. By doing so, Y gets 10,000 clicks too on
the same ads the same people showing
How is the long tail important when it the same interest on the same ad but Y
comes to search? Let's assume you're has obtained this by spending $500 on
back in the hotel example. Hotels X and the first 1,000 clicks and $450 on the
Y want to be on the results page on a next 9,000 clicks for a total spend of
relevant search. X decides that there $950 to deliver the same results. A
are 5 phrases that are ‘obvious’ and savings of 90%.
important to him and finds that
because others have also bid on the
same phrases, he has to bid at $1 per
click to feature in the top rankings. And,
using this strategy, he gets 10,000
clicks a month, spending US$10,000 in
the process.

The ‘long tail’ of cheaper,
non-obvious words.

The ‘head’ of costlier,
obvious words.

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
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A report by IAMAI and Pinstorm
Doing Search
Right: Catching
There are several problems with the they make more money for less effort by
The Tiger By execution of a ‘long tail’ strategy. The buying one word at $5 a click than for
The Long Tail. first is that it is not easy to come up with buying 100 words for $1 a click or
‘undiscovered gems’ - the keywords that 9,000 words for $0.05 a click.
your competition has not discovered yet.
Some companies, like Pinstorm in India, The traditional advertising system of
Ravenswood in the US and Incubeta in commissions for media spends finds it
South Africa have developed custom hard to keep pace with these demands
tools to generate these search terms from advertisers who want increasingly
and each have in-house keyword lower costs per click in an environment
databases well in excess of 10 million where keyword costs are rising.
keywords.
Some search specialist firms have
Today's key advertisers and search moved to a pay-for-performance model,
specialist agencies realize that the long where they offer a flat price to the client
tail is a necessary ingredient of their for a result after using their technology
search efforts and many of them to arbitrage and buy clicks at a lower
routinely manage keyword portfolios in cost.
excess of 100,000 keywords for each
With all this, search marketing is still a
client. Several global marketers who
young medium. The future will have
operate in multiple languages and / or
video, audio and other innovations; all
across multiple geographies have a
in the same, successful pay-for-
presence on several million keywords.
performance format.
Second, most search agencies aren't
excited about doing long tail work
because it entails much more work to
buy, manage and optimize 9,000 words
compared to doing it for 5 words for no
apparent greater money. In fact,
because most search agencies are
compensated on a commission basis,

THE STATE OF SEARCH ENGINE MARKETING IN INDIA.
30
A report by IAMAI and Pinstorm