SEARCH ENGINE

MARKETING

Why Search Engine Marketing

(SEM)?

As a way for traffic building to companys

webpage.
Building awareness
Optimizing online promotions
Some terms

Cost per thousand impression (CPM)

Click through rate (CTR)
Conversion rate (CR)
Click stream (CS)

Cost per Thousand Impression

(CPM)

Cost per thousand (CPM) is a marketing term

referring to the cost of a media vehicle reaching 1,000
members of an audience. The M in CPM is the Roman
numeral for 1,000.
CPM = (Cost / Number of impressions)*1000
Let's say that you have 465,000 impressions that you're
selling for $19,530. What is the CPM? If you said $42,
you got it right.
If I have $16,400 to spend and the CPM is $64, how
many ad impressions can I buy?
Cost per thousand (CPM) is important because it is used
to compare the cost effectiveness of different media
vehicles.

Click Through Rate (CTR)

A ratio showing how often people who see your ad end

up clicking it.
CTR can be used to gauge how well your keywords and
ads are performing.
This number is the percentage of people who view your
ad (impressions) and then actually go on to click the ad
(clicks). The formula for CTR looks like this:
(Total Clicks on Ad) / (Total Impressions) *100 =
Click Through Rate
An ad that is displayed 1,000 times and receives 10
clicks has a click-through rate of 1 percent.
The CTR can be an indicator of how relevant an ad is to
the searcher or to the audience targeted.

Conversion Rate(CR)

The average number of conversions per ad click,

shown as a percentage.
Conversion rates are calculated by simply taking the
number of conversions and dividing that by the
number of total ad clicks that can be tracked to a
conversion during the same time period.
The typical e-commerce conversion rate lies between
2% and 3%, which means that around 98% of the
visitors leave your website without purchasing a
product.

Clickstream Analysis

On a Web site, clickstream analysis (sometimes

called clickstream analytics) is the process of collecting,
analyzing, and reporting aggregate data about which
pages visitors visit in what order - which are the
result of the succession of mouse clicks each visitor
makes (that is, the clickstream)
There are two levels of clickstream analysis: traffic
analysis and e-commerce analysis.
Traffic analysis operates at the server level by collecting
clickstream data related to the path the user takes
when navigating through the site.
Traffic analysis tracks how many pages are served to
the user, how long it takes pages to load, how often the
user hits the browser's back or stop button, and how
much data is transmitted before a user moves on.

Clickstream Analysis

E-commerce-based analysis uses clickstream data to

determine the effectiveness of the site as a channel-tomarket by quantifying the user's behavior while on the
Web site.
It is used to keep track of what pages the user lingers
on, what the user puts in or takes out of their shopping
cart, and what items the user purchases.
What is the most efficient path for a site visitor to
research a product, and then buy it?
What products do visitors tend to buy together, and
what are they most likely to buy in the future?
Where should I spend resources on fixing or enhancing
the user experience on my website?

Bounce Rate

Bounce Rate is the percentage of single-page sessions

(i.e. sessions in which the person left your site from the
entrance page without interacting with the page).

Bounce Rate Vs Exit Rate

To understand the difference between Exit Rate

and Bounce Rate for a particular page, keep the
following points in mind:

For all page views to the page, Exit Rate is the

percentagethat werethe last in the session.
For all sessions that startwith the page, Bounce
Rate is the percentagethat were the only one
of the session.
Bounce Rate for a page is based only on
sessions that start with that page.

Bounce Rate Vs Exit Rate

Your site has pages A through C, and only one session per day
exists, with the following page view order:

Monday: Page A > Page B > Page C

Tuesday: Page B > Page A > Page C
Wednesday: Page A > exit
Consider that a bounce is the notion of a session with only one
interaction from the user, and the session-centric analysis answers
a simple yes/no question: "Did this session contain more than
one pageview?" If the answer to that question is "no," then it's
important to consider which page was involved in the bounce. If
the answer is "yes," then it only matters that the initial page in the
session lead to other pageviews. For that reason, bounce rate for a
page is only meaningful when it initiates the session.

Bounce Rate Vs Exit Rate

Now let's extend this example to explore the Exit rate

and Bounce rate metrics for a series of single-session
days on your site.
Monday: Page B > Page A > Page C
Tuesday: Page B > Exit
Wednesday: Page A > Page C > Page B
Thursday: Page C > Exit
Friday: Page B > Page C > Page A

Bounce Rate Vs Exit Rate

The % Exit and Bounce Rate calculations are:

Exit Rate:
Page A: 33% (3 of 5 sessions included Page A)
Page B: 50% (4 of 5 sessions included Page B)
Page C: 50% (4 of 5 sessions included Page C)
Bounce Rate:
Page A: 0% (one session began with Page A, but that was not a
single-page session, so it has no Bounce Rate)
Page B: 33% (Bounce Rate is less than Exit Rate, because 3
sessions started with Page B, with one leading to a bounce)
Page C: 100% (one session started with Page C, and it lead to a
bounce)

The Difficult Battle for Web

Traffic

1.

2.

Value and Scarcity

Online content, attention, and the DiamondWater paradox
Novelty no longer generate traffic
Spending on traffic building
Organic Search Engine Optimization: spending to
ensure that search engines rank a site highly relevant
in the relevant search criteria & searches
organically find the listing & the site.
Search Engine Marketing (SEM): technology
spending to make onsite search more effective (PPC
advertising)

The Difficult Battle for Web

Traffic

The Difficult Battle for Web

Traffic

Sources of Web Traffic

1.
2.
3.

Web Traffic Plan: combination of strategic &

tactical choices a company makes to build an
active user base.
Branding Choices
Affiliate Program
Online Promotion
i.
ii.
iii.
iv.

4.

Banner Advertising
Mass Media Advertising
WOM
Publicity

Search Engine

Traffic Volume and Quality

Typical Visit Pattern

Wine glass plot tool: web visualization tool that

presents the average visit pattern of website
visitors, either from all visitors or for a target
demographic segment of customers.

Star-field tool: spotting problems of over- and

under-exposure of individual product items or
desirable actions.

Wine Glass Pattern

Wine Glass Pattern

Traffic Volume and Pattern

Suppose a typical customer pass through following four

stages before making a purchase:
Shown ads
Visit websites
Compare products
Add to wish list / kept in cart
Make purchase.
The percentage of customers passing through these stages
are as follows:
Shown ads (100%)
Visit websites (25 %)
Compare products (10 %)
Add to wish list / kept in cart (5%)
Make a purchase (1%).
What could be the source of problem for such a low buying
rate?

Traffic Volume and Pattern

Suppose a typical customer pass through following four

stages before making a purchase:
Shown ads
Visit websites
Compare products
Add to wish list / kept in cart
Make purchase.
The percentage of customers passing through these stages
are as follows:
Shown ads (100%)
Visit websites (90 %)
Compare products (50 %)
Add to wish list / kept in cart (10 %)
Make a purchase (5 %).
What could be the source of problem for such a low buying
rate?

Star-field tool

Size of the box represents sales performance

Width: Product Price

Height: Product margin

Star-field tool

Traffic Volume and Pattern

Typical Visit Pattern

Wine glass plot tool

Star-field tool

Cost Per Action (CPA): No. of visitors that make a

particular stage (the action) divided by the cost of the
campaign. E.g Cost per Impression, CPM, CTR, CR etc.

Cost-per Action

Cost per Action

Suppose a typical customer pass through following four

stages before making a purchase:
Shown ads
Visit websites
Compare products
Add to wish list / kept in cart
Make purchase.
The percentage of customers passing through these
stages are as follows: Shown ads (100%),Visit websites
(25 %),Compare products (10 %) Add to wish list / kept
in cart (5%) Make a purchase (1%).
Assuming cost per action to be same across stages,
i) which stage reflects the most efficient performance in
terms of per rupee spent?
ii) which stage reflects the least efficient performance in
terms of per rupee spent? (D) A

Cost per Action

IF CPM = $ 10.00, CTR = 2%, CR = 5%, then calculate

cost per buyer.

IF CPM = $ 10.00, CTR = 2%, CR = 5%, then calculate

cost per impression.

IF CPM = $ 10.00, CTR = 2%, CR = 5%, then calculate

cost per click-through.

Web Visibility and Competitive

Analysis

Website Traffic

One of the companies that provide details on website

traffic : Alexa.com
Provides data on various parameters related to daily
traffic(site popularity) viz. daily page views per
visitors, time spend on the website and bounce rate.
Upstream Sites: websites visited by people just
before coming to the concerned website.
Downstream Sites: websites visited by people just
after exiting the concerned website.

Traffic Building Goals

Maximize Profit

Customer lifetime value (CLV) vs. unified visit value (UVV)

CLV: discounted net present value of the expected profits
from a new customer.
UVV: full expected benefits arising from a customer visit to a
website including branding and purchase benefits.
For a new firms, largest impact of UVV comprise of prob.
(new customer acquisition) * CLV.
For established firms, UVV largest impact through long term
branding.
Spend on traffic building sources that maximize the
difference between CLV (UVV) and online customer
acquisition cost.
Spent on traffic sources that maximize the difference
between unified visit value and cost per visit.

Minimize Cost-per Action

A certain no. of new visitors

A certain no. of new registered users
providing email address
A certain no. of visitors enquiring about a
product
A certain no. of new customers
A certain no. of returning customers

Maximize Actions

Online promotional / engagement activities

Online / social networks site polls / quizzes

Search Engine Optimization

Site Optimization (Search Engine Optimization)

The power of Above the Fold

Search Engine Awareness
Use Meta-Tags to Flag Important Concepts
Structure website Content
Keyword

Cultivate External Links

Inline

density

links

Approach

White-hat techniques
Black-hat techniques

Keyword Advertising
Evaluation

Step 1: Identify possible keywords

Step 2: Expand the list

E.g. Google AdWords keyword planner tool

Step 3: Testing keywords

Review weblogs
Keyword length (1/2/3/4 words)

Keywords and their corresponding CTRs and CRs

Step 4: Bid, trim and track

Bid-based listing
CTR based listing

HEAT MAP - WEBSITE

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