The document discusses internet marketing strategies like search engine marketing (SEM). It summarizes that SEM involves generating keywords, writing targeted ad copies, and determining the best performing combinations of ads and landing pages. Successfully matching keywords, ads, and pages can increase returns. However, manually optimizing large portfolios is difficult, so most campaigns rely on averages, hurting performance over time through cascading effects on quality scores, positions, volumes, and returns. The key is optimizing each combination separately.

1. Internet Marketing
Dr. Ahmet Bulut, Faculty at Ist. Şehir. Univ.
Merve Sargın, Consultant at Deloitte

2. Internet Marketing
• Search Engine Marketing (SEM)
• Display Advertising

3. Search Engine Marketing

4. Search Engine Marketing
Paid
Search Ad

5. Search Engine Marketing
Paid
Search Ad

6. Display Advertising

7. Display Advertising
Display
Ad

8. Search Engine Marketing
• SEM can be summarized in three simple steps:
• I. Generation of keywords and bidding on these
keywords.
• II. Writing an ad copy for that keyword or group of
keywords that will show up as text on sponsored links
section.
• III. Determination of what pages will convert best with
which ad copy and reporting on that keyword
performance.

9. I. Generation of keywords
• Keyword
• Brand + Keyword
• Color + Brand + Keyword
• Gender + Keyword
• ...

10. I. Generation of keywords
• Shoes
• Mens Shoes
• Womens Shoes
• Puma Shoes
• Nike Shoes
• Red Puma Shoes
• ...

11. II. What is an Adcopy?

12. II. What is an Adcopy?
this is an adcopy

13. II. What is an Adcopy?
this is an adcopy

14. II. What is an Adcopy?
this is an adcopy

15. II. What is an Adcopy?

16. III. Landing Page - 1

17. III. Landing Page - 2

18. So, we have
Keyword1, Keyword2, ..., KeywordK
Adcopy1, Adcopy2, ..., AdcopyM
LandingPage1, LandingPage2, ..., LandingPageN

19. Which one performs better?
Keyword1, Keyword2, ..., KeywordK
Adcopy1, Adcopy2, ..., AdcopyM
LandingPage1, LandingPage2, ..., LandingPageN

20. Which one performs better?
Keyword1, Keyword2, ..., KeywordK
Adcopy1, Adcopy2, ..., AdcopyM
LandingPage1, LandingPage2, ..., LandingPageN

21. Which one performs better?
Keyword1, Keyword2, ..., KeywordK
Adcopy1, Adcopy2, ..., AdcopyM
LandingPage1, LandingPage2, ..., LandingPageN

22. performs better in terms of:
• Click Through Rate (CTR)
• Average Bid
• Average Placement
• Site Engagement
• Conversion Rate (CR)

23. performs better in terms of:
• Click Through Rate (CTR)
• The ratio of the number of users that click on the ad
to the number of total users that has seen the ad.
• Average Bid
• Average Placement
• Site Engagement
• Conversion Rate (CR)

24. performs better in terms of:
• Click Through Rate (CTR)
• Average Bid
• The average bid price paid per visitor (user that
clicks on the ad).
• Average Placement
• Site Engagement
• Conversion Rate (CR)

25. performs better in terms of:
• Click Through Rate (CTR)
• Average Bid
• Average Placement
• Average position of the ad over time.
• Site Engagement
• Conversion Rate (CR)

26. performs better in terms of:
• Click Through Rate (CTR)
• Average Bid
• Average Placement
• Site Engagement
• How much time visitors spend on our site, and etc.
• Conversion Rate (CR)

27. performs better in terms of:
• Click Through Rate (CTR)
• Average Bid
• Average Placement
• Site Engagement
• Conversion Rate (CR)
• The ratio of the visitors that buys/signups/... on our
site to the total visitors.

28. Traditional SEM Strategy
• Most commercially available software
applications focused on solutions for bid
management and reporting.
• The challenge has been seen as automating the
bidding on thousands (if not millions) of
keywords and reporting to illustrate how those
bids have performed.

29. Successful SEM Strategy
• 1. Write an ad copy that speaks directly to a query
keyword, because it has got a higher of chance of
getting clicked.
• 2. Prepare a landing page that is relevant to the ad
copy and search query combination, because
visitors are more likely to convert when they
arrive on a landing page that is highly relevant to
both their query and the ad copy.

30. Successful SEM Strategy
• 3. Success on steps 1&2 results in an increase in
campaign Return on Investment (ROI).
Higher ROI enables advertiser to bid even higher and
results in an increase in campaign volume.

31. SEM Dynamics
• It first starts with quality and then converges onto
quantity. This seemingly viable strategy has a
common pitfall.

32. SEM Dynamics - Case
• A marketer M manually places keywords (Ks)
into ad groups (AGs). M writes an ad copy that is
targeted specifically for a keyword K in Ks.
• A landing page is manually crafted and
specifically targets K.
• In a campaign that covers thousands of
keywords, M can achieve relevance for a very
small set of keywords at best.

33. Case Scenario
Ad Copy
Ad Group
K1
K71
K19
K8 K35

34. SEM Dynamics - Case
• Given constrained resources and manpower,
achieving relevance at scale across their entire
keyword portfolio seems undoable.
• The rest will be averaged out such that most
campaigns will be served through best average ad
copies and most users will land on best average
landing pages.

35. Bad Case Scenario
• The results of an average campaign performance
have cascading bad effects on the campaigns
overall success and its long-term sustainability for
the future. conversion.

36. Bad Case Scenario
• Less than optimal relevance results in a less than
optimal quality score (QS).
• A lower QS results in diminished average
position in sponsored links ranking.
• Less than optimal position decreases the overall
campaign volume.

37. Causal Relationships
Average
QS ROI Volume
Position

38. Causal Relationships
Average
QS ROI Volume Acquisition
Cost

39. Bad Case Scenario
• Once the volume decreases, it converts into lower
CTR and lower landing page conversion.
• Altogether, this means a lower ROI across the
entire campaign.
• When the ROI is low, the advertiser cannot adopt
an aggressive bidding strategy in order to scale
the volume on her campaign.

40. Bad Case Scenario
• The diminished average position translates into
paying more in order acquire the same users.
• Increase in acquisition cost forces the advertiser
1. to decrease the bids
2. to deactivate lower performing keywords
to be able to maintain the target profit margins or
cost per acquisition (CPA) goals for the campaign
set at the beginning of the campaign.

41. Bad Case Scenario
• Naturally, the campaign volume shrinks even
more over time until the campaign is shut down
completely.

42. Which one performs better?
Keyword1, Keyword2, ..., KeywordK
Adcopy1, Adcopy2, ..., AdcopyM
LandingPage1, LandingPage2, ..., LandingPageN

43. The answer is:
• Optimize each combination separately.
• That is our job.