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The Business of Search
An Insider Perspective on the Search
Engine Business and How This Shapes
Our Approach
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.
@NicholaStott
Were 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
Search Business Metrics
@NicholaStott
???
Search Business Metrics
S x Cov x CPC x CTR = $$$$$$$$$$$$$$$$$$$$
@NicholaStott
1000
= RPM
Search Business Metrics
1M x 85% x 0.18 x 15% = 贈22,950 /RPM - 贈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 = 5,620,500
x RPM (贈22.95)
= 贈128,990,475
* Comscore Global Search Market Growth Report  2009
@NicholaStott
Search Business Metrics
@NicholaStott
GBP to USD 31 day average December 09  1.62388
www.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% = 贈24,300
RPM = 贈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% = 贈23,247
RPM = 贈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% = 贈21,712.70
RPM = 贈21.71
Worse than when we started at 贈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% = 贈24,327
RPM = 贈24.33
Would it happen like this?...
@NicholaStott
CPC
CPC controlled by...
Macro-economic factors
Smart Pricing
@NicholaStott
CPC
@NicholaStott
CPC
CPC up 6%, CTR down 1%
1M x 85% x 0.1908 x 14% = 贈22,705.20
RPM = 贈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% = 贈29,643.75
RPM = 贈29.64
@NicholaStott
The Page One Objective
@NicholaStott
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 贈29.64 = 贈208,221,000
GBP  USD 30 day average (Sept) = 1.55576
$323,941,902.96
October, November up 25.5% on December ($406,547,088.21)
= $1,137,036,079.38
@NicholaStott

More Related Content

Nichola Stott - Manchester SEO MiniConference

  • 1. The Business of Search An Insider Perspective on the Search Engine Business and How This Shapes Our Approach
  • 2. 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. @NicholaStott
  • 3. Were Going To Cover... Why Me? Search Business Metrics Which Metrics Matter Most? Coverage CPC CTR The Page One Objective @NicholaStott
  • 4. 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
  • 5. The Business of Search Search Business Metrics
  • 6. Search Business Metrics Searches Coverage CPC CTR @NicholaStott
  • 8. Search Business Metrics S x Cov x CPC x CTR = $$$$$$$$$$$$$$$$$$$$ @NicholaStott 1000 = RPM
  • 9. Search Business Metrics 1M x 85% x 0.18 x 15% = 贈22,950 /RPM - 贈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
  • 10. Search Business Metrics UK December 2009 = 6,245,000,000* Google share = 90% /1000 = 5,620,500 x RPM (贈22.95) = 贈128,990,475 * Comscore Global Search Market Growth Report 2009 @NicholaStott
  • 11. Search Business Metrics @NicholaStott GBP to USD 31 day average December 09 1.62388 www.oanda.com = $209,465,052.54 Google Q4 Earnings 2009
  • 12. Search Business Metrics @NicholaStott October 2009 November 2009 December 2009 $281,267,473.73 $281,267,473.73 $209,465,052.54
  • 13. Search Business Metrics @NicholaStott Which metrics matter most? Which do search engines want to grow?
  • 14. The Business of Search Which Metrics Matter Most?
  • 15. Coverage Coverage? Imagine a 6% increase... 1M x 90% x 0.18 x 15% = 贈24,300 RPM = 贈24.30 Would it happen like this?... @NicholaStott
  • 17. Coverage @NicholaStott Additional 6% of covered terms @ 0.05p 1M x 90% x 0.1722 x 15% = 贈23,247 RPM = 贈23.24 Would it happen like this?...
  • 18. Coverage @NicholaStott Additional 6% of covered terms @ 1% CTR 1M x 90% x 0.1722p x 14.01% = 贈21,712.70 RPM = 贈21.71 Worse than when we started at 贈22.95!
  • 19. The Business of Search Which Metric Matter Most? CPC?
  • 20. CPC CPC? Imagine a 6% increase... 1M x 85% x 0.1908 x 15% = 贈24,327 RPM = 贈24.33 Would it happen like this?... @NicholaStott
  • 21. CPC CPC controlled by... Macro-economic factors Smart Pricing @NicholaStott
  • 23. CPC CPC up 6%, CTR down 1% 1M x 85% x 0.1908 x 14% = 贈22,705.20 RPM = 贈22.70 Back to square one... @NicholaStott
  • 24. The Business of Search Which Metrics Matter Most? CTR?
  • 26. 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
  • 27. The Business of Search The Page One Objective
  • 28. The Page One Objective 1M x 85% x 0.225p x 15.5% = 贈29,643.75 RPM = 贈29.64 @NicholaStott
  • 29. The Page One Objective @NicholaStott 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
  • 30. The Business of Search Final Point Just for Fun...
  • 31. Google Q4 UK Revenue 2010 UK Searches 6,245BN (35% YoY on 2008) Up 25% YoY = 7806BN Google 90% = 7025BN @RPM 贈29.64 = 贈208,221,000 GBP USD 30 day average (Sept) = 1.55576 $323,941,902.96 October, November up 25.5% on December ($406,547,088.21) = $1,137,036,079.38 @NicholaStott