Meet the Search Ad Networks Doug Stotland Microsoft adCenter

1
Meet the Search Ad NetworksDoug
StotlandMicrosoft adCenter

• SES San Jose
• August 8, 2006

2
The 7 Minute Microsoft adCenter Abs Agenda

• adCenter Update
• Rising CPCs and the BRG
• Results to Date
• Wrap Up

3
Microsoft adCenter Update

• Since SES San Jose 05
• 10/8/05 France and Singapore Launch
• 10/18/05 US pilot begins
• 10/26/05 White Sox win World Series
• 5/4/06 US launch
• 8/7/06 Firefox 5.1 support
• Up Next
• (Summer 06) UK pilot
• (Fall 06) Contend ads in adCenter

4
Rising CPCs and the BRG

• CPCs increase
• Why is that?
• Increasing demand from new advertisers and bigger
  budgets
• Irrational behavior
• Increasing ROI
• The Big ROI Gap (BRG) gets Bigger

ROI
Knowledge
Technology Innovation
ROI
Market Changes
ROI
ROI
5
The BRG Market Changes

• Adapt and adopt as the market changes
• May 2006
• adCenter Launches
• 40 MM users, 2B searches/month
• Access to high converting, high spending audience
  moves from Yahoo to adCenter

Conversion Rate
Market Changes
ROI
ROI
Notes Compete defines Conversion as a session
where the conversion funnel was completed
(purchasing retail item, purchasing travel) MSN
scored 3rd in Financial Services, the only other
category studied
6
The BRG Technology and Innovation

• Capitalize on innovations coming to market to
• Learn about your customers and target more
  precisely
• Improve CTR which increases volume and lowers
  your CPCs
• Increase post-click conversions

Technology Innovation
ROI
ROI
7
The BRG Knowledge and Skill

• Build knowledge and work with ringers
• SEM agencies
• Conferences, training, blogs, etc.
• Good marketing beats less good marketing
• Hiring

ROI
Knowledge
ROI
8
Whos on the Business End of the BRG?

• Adapt and adopt as the market changes
• Capitalize on innovations coming to market
• Build your capabilities

ROI
The BRG
The Business End of the BRG
ROI
9
Why adCenterMeasurable Conversion Powerful
Audience Intelligence

• Compete Inc. ranks MSN first in conversion rates
  in Retail, Consumer Electronics and Travel
  categories

Conversion Rate
Audience Targeting
Notes Compete defines Conversion as a session
where the conversion funnel was completed
(purchasing retail item, purchasing travel) MSN
scored 3rd in Financial Services, the only other
category studied
10
Why adCenterWhats Working for our Clients
The ROAS comparison for June for our biggest
client, expressed as revenue per ad dollar spent,
is 2.85 for AdWords, 5.53 for Yahoo, and 8.13
for Microsoft adCenter. Needless to say, were
going to increase our investment in Microsoft
adCenter right away. David Szetela , President
CEO, Clix Marketing, www.clixmarketing.com
The efficiency gained from Microsoft adCenter
allowed Move.com to be more aggressive with its
acquisition strategy, resulting in more
conversions across the entire campaign. Frank
Lee, VP, Account Management Partner Relations,
The Search Agency

• The campaign has been an overwhelming success.
  We have seen conversion rates up to two times as
  high as other major search engines, including
  Google, all at lower bid prices. At this point,
  we want to spend as much money with Microsoft
  adCenter as we can because it simply works as
  well or better than anything else out there.
• -- David Rodnitzky, Senior Director of Marketing
  Adteractive

MSN achieved an excellent rate of return on the
amount we spent. Register.com looks forward to
growing our paid search campaign with MSN as the
engine expands. -- Craig Cooperman, Director,
Advertising Partner Marketing at Register.com.
11
Success Story Home Décor Case Study
Campaign results on Microsoft adCenter earned
significant ROI, exceeding acquisition cost goals
and outperforming Yahoo! The addition of
Microsoft adCenter to the advertising mix, and
its ability to deliver strong ROI has contributed
to an increase in HDPI's overall search marketing
spend With Microsoft adCenter serving 100 of
MSN Search traffic, HDPI anticipates gaining even
more flexibility to reallocate its search budget
to better performing search engines
"Our goal is to maximize ROAS without
cannibalizing revenue growth. The acquisition
cost on Microsoft adCenter is so low that it
allows us to increase our maximum CPA goals on
other engines and still remain below our campaign
cost threshold.
- Christal Condon
Director,
Online Marketing
"The net result is we are able to drive more
volume and convert more visitors at a reduced
cost. Microsoft adCenter has greatly enhanced our
ROI."
- Christal Condon
Director, Online
Marketing
Source Market Forecast, Retail, 2005-2009,
JupiterResearch. 2005.
12
Wrap Up

• Getting started with adCenter adCenter.microsoft.
  com
• Learn more
• Booth at SES Expo
• Varnished advertising.msn.com/adcenter
• Unvarnished forums.searchenginewatch.com and
  www.webmasterworld.com
• adCenter blog blogs.msdn.com/adcenter
• doug.stotland_at_microsoft.com