When Search Engines do Search Marketing

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When Search Engines do Search Marketing
Travel
Shopping
Music
Autos
Personals
HotJobs
Domains
Web Hosting
Merchant Services
2
Agenda

• Why does Yahoo! do SEM?
• Different Business, Different Models
• Paid Search, Organic and Affiliate
• Managing Expectations
• Build vs. Buy, or both?

3
Why am I standing here talking?

• The Band broke up in 1985
• Hate Sammy Hagar
• Pursued solo career (Just a Gigolo)
• Got Into Radio
• Couldnt replace Stern
• Yahoo! called.something about Panama

4
No Really, why am I standing here talking?

• Agency guy from way back
• Paid Inclusion
• P4P
• SEO
• Affiliate marketing
• Search within Advertising
• Yahoo has been doing SEM for a while in many
  Business Units
• Need a central perspective
• Efficiencies
• Best Practices
• Scale

5
Why SEM?

• Everyone knows SEM is the best way to acquire
  customers, even if you are a Search Engine
• Yahoo! has extensive Search Marketing campaigns
  across the organization that include paid search,
  SEO, and Affiliate Marketing

6
SEM Coverage Across the Organization

• Yahoo! is engaged in Search Marketing for a large
  number of properties, such as
• Personals
• Small Business
• Web Hosting
• Domains
• Retail Services
• Shopping
• Travel
• Autos
• Broadband
• Music
• Yahoo! Search Marketing
• News
• Finance
• Answers
• Local
• Messenger

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Paid Search, SEO and Affiliate

• Holy Trinity of Performance Marketing
• Paid Search Yahoo! advertises on millions of
  keywords across multiple search engines for all
  business units
• SEO Yahoo! maintains SEO guidelines enforced on
  all BUs who spend cash on performance marketing
• Affiliate Yahoo! has a corporate affiliate
  marketing program that works closely with SEO,
  SEM.
• Managing SEM/SEO policies for Affiliate program
  is important

8
Different Business Models, Different Businesses

• Subscription
• Personals
• Music
• Broadband
• Conversion
• Messenger
• Transactional
• YSM
• Domains
• Lead Generation
• Autos
• Shopping
• Travel
• CPM Revenue
• Media

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Many Models, One Method

• LTV optimization
• What is the lifetime value of a conversion?
• Subscription
• Referral
• CPM/CPC Revenue
• What is the net present value (NPV) of that
  lifetime revenue stream?
• What is the acceptable profit margin on NPV?
• Monthly Scorecard for all Business Units,
  Channels

10
Managing Centralize vs. Decentralize

• Business owners know their business
• Search Engine Marketers know SEM
• Managing the tradeoffs
• Adding Centralized Resources
• Maximize efficiency and scale
• Maintain business knowledge
• Manage against a single standard
• Allow budget mobility to incentivize stakeholders
• Between Channels
• Between Business Units

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In-House vs. Outsourced

• Yahoo! uses a blend of in-house SEM Management
  and agency assistance to execute SEM across the
  organization
• SEM Infrastructure exists within Yahoo!
• Yahoo! will continue to leverage agency
  relationships to gain industry expertise, time to
  market
• Yahoo! has built, and will continue to build,
  strategic pieces of SEM infrastructure

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Thank You
David Roth Director, Search Engine Marketing