SEM & Open Search
SEM & Open Search
Luong Vinh Tuoc
SVP, Search Yahoo Inc.
HCMC July 23, 2008
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Agenda
• SEM Presentation in Vung Tau
– Search & Advertizing Industry Trends
– Samples of Vietnam Queries Worldwide
– What is SEM (paid) vs SEO (organic)?
• Y! Open Search
– Search Monkey
– Build your Own Search Service (BOSS)
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Search Industry Trends
Search engines have emerged as de facto mediators of Web traffic
75% of all U.S. online users (non-unique) are
search users…
… and search use is growing faster
than Internet use itself…
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Search Industry Trends
Search is the dominant traffic source for even the strongest online brands
Amazon ~67%
Expedia ~ 47%
Monster
~46%
Gap ~ 48%
Target
~ 56%
Petco
~ 48%
% of Traffic From Search: Leading E-Commerce Sites
% of Traffic From Search: Leading Multi-channel Retailers (Internet)
Source: comScore Media Metrix
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Online Shopping Trends
Web search remains top customer acquisition tool for Online Retailers
% of New Customers for Online Retailers / Marketing Spend Mix
Source: The State of Retailing Online, Forrester Research
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Online Advertising
Source: IAB, Emarketer
Search Engine Marketing will keep its 40% share
of online advertising as the category grows
$ in Billions
Search Advertising as % of Internet Advertising (2007–20011E)
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Why is Search Advertising so Effective?
• It is “intent” driven!!!
• User query signifies “intent”
• User most receptive to ad at “time” of intent
• Advertiser paids only when user clicks (PPC)
• Most cost effective and best ROI
– As little as 30 cents to acquire a customer
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Top 6 Countries – Intl Vistiors to Vietnam
Intl visitors to VN Jan-May 2008 2078954
China 352175
South Korea 221385
United States 195113
Japan 169640
Taiwan 141609
Australia 104651
Source:
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Yahoo Search Logs
VN Travel Related Queries Weekly Average
China 3387
South Korea 3283
United States 27267
Japan 9268
Taiwan 7214
Australia 1486
Annualized: 1.5M queries in the U.S.
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Sample Queries – Yahoo U.S. Logs
• Vietnam airline cathay pacific
• Vietnam Da Lat
• Vietnam ha long bay pictures
• Vietnam tour
• Vietnam Tourist Authority
• Hotel Hanoi Vietnam
• Timetable of Vietnam airline
• Beach location Vietnam
• Grand hotel Hanoi
• Hotels Vung Tau
• Vietnam Cambodia tour
• Vietnam flight
• Nha Trang tour
• Cheap flights to Vietnam
• Sunflower hotel Saigon
• Sapa hotel Vietnam
• Vietnam airline Australia
• Vesna hotel Hanoi
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Other Countries Sample Queries
• From TW:
– 越南航空公司時刻表
time table of Vietnam airline
– 越南旅行
travel to Vietnam
– 胡志明市酒店
hotel in HCM
• From CN:
– 越南住宿
lodging in Vietnam
– 越南宾馆酒店名录
listing of hotels in Vietnam
– 越南家庭宾馆住宿
hostel (or B&B) in Vietnam
• From Korea:
– 나트랑여행
Nha Trang tour
– 하노이 여행 정보
Hanoi tour information
• From Japan:
– ゼニスホテル
hotel in Hanoi city
• From Thai:
– บริษัททัวรเวียดนามไหนดี which tour operator to Vietnam is good?
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Most SMBs are Still not Participating
• < 50% have a Website
• < 1% are Selling Online
• < 1% are Marketing Online
• TAKE ADVANTAGE of the INTERNET and
SEARCH ENGINES !!!!
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Internet = Enormous Opportunity
• Three Step Process for Online Success
• Step 1: Establish a highly effective web presence
• Step 2: Drive traffic to that presence
• Step 3: Continuously refine
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Drive Traffic with SEO and SEM
• SEO – Search Engine Optimization (Organic)
– Takes a lot of effort, complex with longer timeline for
ROI
• SEM – Search Engine Marketing (Paid)
– Not as complex and quicker ROI
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Paid Search vs. Organic Search
PAID
PAID
ORGANIC
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S E Marketing vs S E Optimization
Search Engine Marketing
Search
Engine
Marketing
Search Engine
Optimization
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Search Engine Optimization
• What is SEO?
• Search Engine Optimization (SEO) involves
designing or changing a website to naturally
rank for targeted search phrases across major
search engines
• What are the SEO levers?
• Crawlability
• Keyword Targeting
• Link Popularity
• Site Architecture
• URL Structure
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SEM at Yahoo!
• What is SEM?
– Acquiring customers by placing keyword-based ads
on search engines in a bidded auction model
• What are the SEM levers?
– Bid Management
– Creative Optimization
– Landing Page Optimization
– Quality Score
– Keyword Expansion
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Where Are You?
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