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Nichola Stotts opening presentation from the Sascon Manchester SEO mini-conference held in Manchester and hosted by Holistic Search founder Peter Young
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The Business of Search
An Insider Perspective on the Search Engine Business and How This Shapes
Our Approach
@NicholaStott
Disclaimer
All figures shown with source credits are drawn from publicly available sources.
All non-credited data is assumed, based on similar published sources and managed client data, and is purely for illustrative purposes only.
We’re Going To Cover...
• Why Me?• Search Business Metrics • Which Metrics Matter Most?– Coverage– CPC– CTR
• The Page One Objective
@NicholaStott
About Nichola
• Founded theMediaFlow 2009• Yahoo! UK head of search partners• Insight to global search metrics• Managed Guardian, ITV, Orange, EU domain,
EU arbitrage etc• Traffic Quality and Pricing Discounts rep
@NicholaStott
The Business of Search
Search Business Metrics
Search Business Metrics
• Searches• Coverage• CPC• CTR
@NicholaStott
@NicholaStott
Search Business Metrics
???
Search Business Metrics
S x Cov x CPC x CTR = $$$$$$$$$$$$$$$$$$$$
@NicholaStott
1000
= RPM
Search Business Metrics
1M x 85% x 0.18 x 15% = £22,950 /RPM - £22.95
If this figure were exact...
“Google Sites Accounts for Two-Thirds of 131 Billion Searches Conducted Worldwide in December” Comscore Global Search Market Growth Report – 2009
@NicholaStott
Search Business Metrics
UK December 2009 = 6,245,000,000*Google share = 90%/1000 = 5,620,500x RPM (£22.95)
= £128,990,475* Comscore Global Search Market Growth Report – 2009
@NicholaStott
Search Business Metrics
@NicholaStott
GBP to USD 31 day average December 09 – 1.62388www.oanda.com
= $209,465,052.54
Google Q4 Earnings 2009
Search Business Metrics
@NicholaStott
October 2009 November 2009 December 2009
$281,267,473.73 $281,267,473.73 $209,465,052.54
Search Business Metrics
@NicholaStott
Which metrics matter most? Which do search engines want to grow?
The Business of Search
Which Metrics Matter Most?
Coverage
Coverage? Imagine a 6% increase...
1M x 90% x 0.18 x 15% = £24,300RPM = £24.30
Would it happen like this?...
@NicholaStott
Search Business Metrics
@NicholaStott
Coverage
@NicholaStott
Additional 6% of covered terms @ 0.05p
1M x 90% x 0.1722 x 15% = £23,247RPM = £23.24
Would it happen like this?...
Coverage
@NicholaStott
Additional 6% of covered terms @ 1% CTR
1M x 90% x 0.1722p x 14.01% = £21,712.70RPM = £21.71
Worse than when we started at £22.95!
The Business of Search
Which Metric Matter Most?CPC?
CPC
CPC? Imagine a 6% increase...
1M x 85% x 0.1908 x 15% = £24,327RPM = £24.33
Would it happen like this?...
@NicholaStott
CPC
CPC controlled by...
Macro-economic factorsSmart Pricing
@NicholaStott
CPC
@NicholaStott
CPC
CPC up 6%, CTR down 1%
1M x 85% x 0.1908 x 14% = £22,705.20RPM = £22.70
Back to square one...
@NicholaStott
The Business of Search
Which Metrics Matter Most?CTR?
CTR
@NicholaStott
CTR
How can we improve CTR without compromising UX/SX?• Improve match technologies• Reduce search abandonment rate• Improve total result relevance
Shift the distribution of all CTR activity to P1
@NicholaStott
The Business of Search
The Page One Objective
The Page One Objective
1M x 85% x 0.225p x 15.5% = £29,643.75
RPM = £29.64
@NicholaStott
@NicholaStott
The Page One Objective
New SERP with greater universal content focus
Mayday, Mayday!
“Yes it has effected the long tail, on poorer quality sites”
“Yes it is a quality win”“Yes it passed all the tests”
(@54 secs)
Google Instant - more impressions, more relevant,
more 1st page action
The Business of Search
Final Point – Just for Fun...
Google Q4 UK Revenue 2010
UK Searches 6,245BN (35% YoY on 2008)Up 25% YoY = 7806BN Google 90% = 7025BN@RPM £29.64 = £208,221,000GBP – USD 30 day average (Sept) = 1.55576$323,941,902.96October, November up 25.5% on December ($406,547,088.21)
= $1,137,036,079.38
@NicholaStott
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