Truly, Madly, Deeply Engaged

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OCMC 2008 Sales Presentation Background
Information The Canadian Internet Landscape Why
Yahoo! Canada? Breaking Down Search Innovations
in Display Advertising Integrating Search Media
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The Canadian Internet Landscape
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75 of Canadian are Online and Loving It
The Canadian Online Audience Grew 6 from
2006-2007
78 of Canadian Adult Internet Users state "the
Internet is an essential part of life today
Source comScore Media Metrix Canada, All
Locations, Aug. 06 - Aug. 07 Over the age of
5 years old (source Census 2006)
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Canadians of all Ages are Online
Source comScore Media Metrix Canada, November
07, All Locations Source Statistics Canada, July
04 Census
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Canadians Are Heavy Online Users
76 of Canadians have access to the Internet 65
have Access from Home 80 with Access at Home
have broadband 59 connected to the Internet in
the Past Week 39 spent 11 Hours Online in the
Past Week
Source ComQuest Research, CyberTtrends June 2007
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What are Canadians doing Online?
E-Mail General browsing Weather or road
conditions Travel Info or making travel
arrangements Viewing news or sports Searching for
medical or health-related info Window
shopping Researching community events Playing
games Chatting or Instant Messaging Obtaining /
saving music (free or paid downloads) Listing to
Internet radio Research investments Downloading
or watching TV or a movie

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Canadians Interests are Diverse
YOY Growth of Canadian Unique Visits by Online
Category
1 comScore / Growth Rate Jan 08
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Canadians Are Spending Less Time with Old Media
Source Cybertrends Pulse of the Internet Report
March 2007
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Online is the New Trusted Source
Source Yahoo Internal Research 2007
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Canadians Continue to Spend Online
By 2009 average spend per Canadian consumer
online will be 1,295
Source eMarketer December 2007
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Online Marketing is Growing
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• Why Yahoo! Canada?

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Yahoo.com

• The most trafficked internet destination in the
  world!
• 70 worldwide reach
• 500 million global monthly users
• Worldwide, 1 in every 8 minutes on the Internet
  is spent on
• Yahoo!
• Over 30 world properties in 15 languages
• 260 minutes per visitor per month globally
• 143 billion total global monthly page views
• 164 million average global daily network reach

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Yahoo! Canada

• 16 million unique visitors to Yahoo! Canada
  every month1
• 2 million Canadian visitors a day to the Yahoo!
  Canada Front Page
• 2.4 million Canadians tune into Yahoo! Music
  blasts each month2
• Yahoo! Finance is the 1 Finance site in the
  News/Research category with
• nearly twice as many visitors as its closest
  competitor3
• Canadians spend more times on Yahoo! Sports than
  its closest competitor4

• comScore Media Metrix Canada, All Locations,
  Yahoo! Sites, Q3 2007 Average
• comScore Media Metrix Canada, All Locations,
  Yahoo! Music, Q3 2007 Average
• comScore Media Metrix Canada, All Locations,
  Yahoo! Finance, Q3 2007 Average
• comScore Media Metrix Canada, All Locations,
  Yahoo! Sports, Q3 2007 Average

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Breaking Down Search
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Search vs. Traditional Advertising
Search
Traditional
YOU
YOU
Your customers are searching for you Online
media is a more interactive way to reach your
audience.
Traditional media is a passive way to reach your
target audience
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Canadians First StopSearch Engines

• 85 million search engine queries a day in Canada
• 77 of all Internet traffic is generated from
  Internet search engines
• 93 of online user use search engines to find
  websites
• 99 of Internet searchers do not search beyond
  the top 30 results.
• Over 60 of searchers use at least two different
  search engines
• Top 10 positions receive 78 more traffic than
  those in positions 11-30

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How to Leverage Search Engines
Search Engine Marketing (SEM)
Search Engine Optimization (SEO)
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How does Search Marketing Work?
A potential customer types in the keyword car
dealerships in the search browser.
The advertisers ad appears in the search results
page.
The advertiser pays only when theirs ad is
clicked. This method is called Pay-Per-Click.
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Paid vs. Organic
Paid Listings
Organic Listings
1. Fast to activate- A campaign can be up and
running, driving visitors to your web site in a
matter of hours.
1. Takes longer to optimize. May also take a
lengthy amount of time to be indexed
2. Flexible and efficient in changing ad copy to
work with existing website and new campaigns.
Promotions special offers
2. Most likely requires a change to the website
which can be inefficient and costly.
3. Does not guarantee placement
3. Guaranteed placement and the advertiser only
pays when the ad is clicked on.
More Control
Use both - Users are 28 more likely to click on
a search ad if an Organic listing for the same
brand or product is present on the page
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Search Terminology

• Pay-Per-Click (PPC) online pricing model in
  which advertisers pay only when their ads are
  clicks. The clicking redirects searchers to a
  specified landing page on the advertisers web
  site
• Keyword Word or phrase that relates to the
  advertisers product/ services. When prospective
  customers look for information related to your
  keywords, your ads may be displayed.
• Bid - The maximum dollar amount an advertiser is
  willing to pay each time a searcher clicks on an
  ad
• Conversion A conversion is typically a sale,
  newsletter sign-up, product registration, price
  quote or any other type of lead-generation
  activity

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Campaign Structure
Campaign
Bedroom Event
Ad Group
Storage
Wardrobe, Storage, Drawers, Shelves, Closet
Organizers
Keywords
Bedroom Storage Get your bedroom organized from
a single wardrobe to complete solutions.
www.ikea.ca
Ad
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Organize the Campaign
Basic Campaign
More Structured Campaign
Campaign Ad Groups Keywords
Campaign Ad Groups Keywords
Campaign 1
Campaign 1
Top Keywords
Kitchen countertops Kitchen cabinets Kitchen
storage Refrigerator Dining room table
Kitchen
Kitchen countertops Kitchen cabinets Kitchen
storage Refrigerator Dining room table
Bedroom
Wardrobe Mirrors Beds Cushions Curtains
Other
Wardrobe Mirrors Beds Desks Work chairs Clocks
Desks Work Chairs Clocks Shelving Bookcase
Workspace
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Keyword Generation

• Analyze your site
• Best place to look for relevant keywords
• Use the buying cycle
• Customers perform searches at every stage of the
  buying cycle.
• Select niche keywords
• Niche keywords have little or no competition.

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Campaign Best Practices

• Group your keywords
• By attribute such as product type, product
  category, offer or geographic region
• Decide on your bid
• For each group of keywords
• Communicate a core message
• Create specific ads for each group of keywords
• This can help improve the relevancy of your ads
• Determine effective landing pages
• Helps increase conversions (purchases or lead
  submissions)
• Place tracking tags on your site
• Evaluate the performance of your campaigns and
  help optimize your results.

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Create the Ad
IKEA.ca - Kitchen Ideas For every taste, theres
an IKEA Kitchen. Find yours today. www.ikea.ca
Title/ Heading
Description
URL

• Set a price for your ad by determining the
  maximum amount willing to be paid if someone
  clicks through to your website.

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Relevancy
sofa beds
More Relevant
Relevant
Stylish Sofa Beds Discover IKEAs selection
of sofa beds, all prices and styles. www.ikea.ca
Wholesale Home Furniture Find all you need to
decorate your home at great prices. www.HomeReser
ve.com
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Ad Ranking

• Ad rank score Max bid X Quality score
• Quality score CTR x Other factors
• Quality score is a relative measure of your ads
  performance
• Click through rate clicks/ impressions

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Developing a Search Engine Strategy

• SEO and SEM work best when used together
• Users are 28 more likely to click on a search ad
  if an Organic listing for the same brand or
  product is present on the page
• Although both SEM and SEO can both be easily
  managed internally, significantly better results
  can be achieved in both areas by leaving it up to
  professionals. Although make sure you are hire
  established SEO/SEM specialists with references

Source Yahoo Panama Average Category click
results Apr 2007
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Content Publisher Network
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Innovations in Display Media
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Buy Smart Media, not Bulk Media
Behavioral Targeting
def. Matching your ads with consumers whose
recent behaviors online suggest that your product
category is relevant to them at this time.
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We Collect Observations

• 70 of all Canadian internet users are on Yahoo!
  monthly
• 1 out of every 8 minutes online in Canada is
  spent on Yahoo! or a Yahoo! partner
• Thats a lot of data!

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Users Consumer DNA Evolves
15 million Yahoo!s each unique
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Our Advanced BT Modeling Delivers
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Smart ads Target the right ads at the right time
to the right users
Behavioural interest Bahamas Vacation
Behavioural interest Consumer Electronics
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Integrating Search and Media
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Integrating Search and Media
UNEXPOSED to online advertising
EXPOSED to online advertising
Examine Differences

• Find Those Exposed To The Advertising

• Offline sales
• Online sales
• Engagement
• (time spent/pages viewed)
• Share of Engagement
• Visitation
• Share of Category Visitation

• For every exposed panelist, find a twin who was
  not exposed to the advertising
• Twins are behaviorally demographically
  identical to our exposed group

• Examine differences in online offline behavior
  between both groups

Each level of ad exposure has its own control
group, as behaviorally, each level of ad exposure
is different
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Integration Drives Sales On and Off line
53 lift in Time on retailer site
the
breakdown
Online
?68
1
As site engagement increases
12 of total revenue spent online
e-commerce revenue
43 lift in overall revenue
?46
to
?37
Dollars per purchaser in-store increases
Offline
6
88 of total revenue spent offline
in-store revenue
UNEXPOSED to online advertising
Search Only
Display Only
Search Display
Lift vs. Control Group
Lift vs. Control Group
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Reframing the Kellogs Brand in 2007
From cereal
to an all-day weight-loss solution
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Know Where the Consumers Are
of U.S. W25-54 who presently control their
diet 28.3MM
of W25-54 on Y! who have started a diet program
in the last 6 months 6.5MM
of Y! Weight Mgmt Groups 18,972
of photos tagged Diet in Flickr - 16,196
of W25-54 on Y! Health in a month 2MM
of monthly searches on Y! for Diet - 576,738
of monthly Y! searches for Diet Healthy
-18,651
of questions pertaining to Losing Weight on
Y! Answers - 22,361
Sources comScore Media Metrix, December 2006
AIM, Summer Release 2006 and Internal Yahoo!
Data, MRI Spring 2006
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Create A Complete Integrated Brand Experience
Kelloggs Special K TV Spots, Print Ads Cereal
Boxes direct consumers to Yahoo to search for
Special K.
Offline
Y! Front Page
Search
Yahoo! Health Community
Once a user searches on Yahoo, we can follow that
user throughout the Yahoo! network and deliver
them targeted display advertising using Smart Ads
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Driving Traffic to the Web
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Leverage the Search Engines
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High Visibility on Sponsored Health Content
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Building a Community


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Online Drives Sales Offline
Source Forrester Research/Shop.org