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Google’s Search Market Share Fallen Behind in Asia? Not Exactly.

July 30th, 2010

Don’t call it a comeback, but Google might actually be gaining a lot of ground in the Asian market very soon. Yes, the Far East (the focus of Reform’s International Search Review series so far) – where only a few months ago Google left China, Yahoo dominated Japan and few people in Korea even used Google at any point – has changed drastically.

Yahoo Japan has about a 57% share of the market there, while Google’s share is just over 35%. Microsoft has a share of about 3%. But with Yahoo and Bing merging results elsewhere and Yahoo Japan being independently owned to some extent (unlike in other markets, the Yahoo Japan branch is actually majority owned by Softbank). As a result, they’ve opted to go with Google instead of Bing for its results, on both the SEO and PPC side. Microsoft quickly protested, citing that Google will suddenly have close to a 95% share of the 3rd largest search market after the US & China, thus monopolising it in a similar way to Microsoft’s dominance of the PC market until recently.

As for China, Google is back to work in the market that they shocked many people with by threatening to leave earlier this year. Only a couple months ago, Baidu was pulling away with a clear lead in one of the fastest growing markets (and potentially largest) in the world.

But earlier this month, Google managed to work out a deal where operations in China could resume through 2012, and the google.cn domain no longer redirected to Hong Kong. But the relationship has been short lived, as while http://www.google.cn/ is back, trying a query as of July 30th takes you to Hong Kong once more. So, the comeback is still a work in progress there. In fact, you can take a quick look at day to day status via http://www.google.com/prc/report.html#hl=en

Google has also cut ties with two of the twenty five “authorized advertising agents” in China, which account for most of the paid search spend within China.
Moving over to Korea, where Google’s market share is even lower (under 5%), they’ve worked on a new strategy – going away from search and moving towards mobile and even TV. Working on partnerships with local companies, Google has shown progress in the mobile market there (which rivals such as Naver were late to enter) and are working with companies such as LG and Samsung on integrating search with other forms of media, such as TV, where Samsung is potentially working on launching a Google TV that would run on Google’s Android Operating System.

Still, contrary to what some people felt a few months ago, Google hasn’t given up on Asia yet. And the search market in countries like China, Japan and Korea is still ready for new competition. Find out more about these markets and more via our market research pieces:

Search Marketing in China

Search Marketing in Korea

Search Marketing in Russia

Search Marketing in India – Coming Soon.

The integration of search with other marketing channels

July 16th, 2010

Integrating search with other marketing channels has been a hot topic for many years now.

We’ve seen paid & natural reporting interfaces developed by technology providers, studies that correlate uplifts in performance in PPC with TV activity, and path to conversion analysis which shows that ATL activity also generates interest in generic search terms, not just brand. These are all significant steps forward and very useful for making investment decisions, but are based on budget justification, rather than guiding us in creating a more coherent and user-focused strategy.

So what can we do to align our marketing strategies, so that we are presenting the consumer with a consistent message that provides them with exactly what they’re looking for? The answer is to think about it from the consumer’s perspective.

In search, the results page acts as a point of confluence: it is the meeting point for the efforts of many marketing channels. A searcher could have been influenced to search by PR, a television or radio ad, a mail drop, an email, word of mouth, or any other form of marketing. It is therefore crucial for a search marketer to understand some key things about this results page:

  1. What results pages are searchers viewing (i.e. what search terms are they using)?
  2. What type of content are they looking for?
  3. What options are they currently presented with?
  4. What is the best way to get this content ranking?

This isn’t a reactive process, though. By the time a piece or PR has generated a spike in search volume the opportunity will be lost. The key to success in integration is therefore proactive communication; ensuring that the search team are aware of the ATL strategy and are anticipating search volume and optimising for it with the right kind of content before the event.

It’s not just about being there, it’s about being there with the content that the user will be most responsive to to make sure that you have what the user is searching for. This requires bringing together multiple stakeholders and possibly drawing on multiple budget lines.

With marketers from different channels often being very different in terms of personality and skill sets,  it’s not always an easy win. But in terms of efficiency and capitalising on the full investment that you are making in your marketing budget it is absolutely crucial. Search is also particularly cruel in that not only is there an opportunity cost of not pro-actively aligning your strategies , you will be feeding traffic to competitors who are ranking on those pages already!

Blog post by Graham Everitt, Search Consultant at Reform

Who searches for who?

July 9th, 2010

In a world dominated by social media and the Facebook generation, brands are – naturally enough – focused on making sure they are in front of people.  Search techniques are sophisticated and complex.  Billions in revenue has flowed into Google.

Behind all this activity, however, lies a huge shift in how we use media.  Profound in its consequences, the shift from the broadcast age of ‘the big shout’ to the digitally enabled, always-on narrowcast ‘big conversation’ is with us.  Even a cursory consideration of what is going down points to huge changes in the way any brand needs to reach out to customers and encourage their purchasing behaviour.

Much search activity is driven by ‘big shout’ thinking: testosterone-fuelled, high energy masculine ‘make them buy this’ thinking.  But if we accept that we live in a world of a ‘big conversation’ where power is flowing to the savvy, demanding consumer then we must be ready to earn respect through how we behave as much as how we succeed in getting in front of people.  We must tell the story of our brand with passion and honesty.  We must allow our customers to participate, and listen to them with skill, attention and deep understanding.

As any author will tell you, good stories demand an innate, even intimate understanding of the audience.  Then the story can be told with passion and intrigue.  The audience can participate, question and feel that they are receiving special attention – that they are party to a little magic.  Brands have to learn this skill.  Rather than so much emphasis on the ‘shout’ perhaps we will see more time, energy and resource devoted to the ‘listen’ part of the conversation.  Who is saying what, to whom, and are they being listened to?  Who is influential, and who is merely shouting into a bucket?  Search can be used to answer these questions, too.

Might we see the telescope of traditional search being turned around?  Isn’t it about time the skills of effective search are harnessed by brands to listen to and interpret what is being said about them?  And wouldn’t that put a premium on intelligent search practitioners?

Blog post by Mary Keane-Dawson, non-Executive Director of Reform

The SEO community starts to test social media search optimisation strategies

July 2nd, 2010

When we think of search we think of external search i.e. search engines like Google that act as windows onto the web. From these windows we can find and access news, videos, social media forums, maps – as well as a wealth of branded content and information about businesses, products & services.

But of course people search elsewhere on the web. After email communication search is the primary web behaviour. And there is another kind of search engine: internal or enterprise search. In the US in March of 2010 Facebook’s internal search engine, for example, saw its usage soar by 48% to total 2.7% of all US searches carried out on the Web in that month. OK, so compared to Google’s 64% share of the US search market that might not seem to impressive. Still, that’s a whole lotta searching going on – and mostly for people’s names.

As brands and businesses start to saturate social media properties like Facebook, SEOs are already trying to fathom what the ranking factors are, so that they can lend their services to help brands become more visible in social media search. This article by Marty Weintraub entitled “Facebook SEO Ranking Factors, 2010 Study Results” suggests that criteria such as the Facebook Suggest Box, inserting generic keywords into name fields, population of the Interests field, encouraging as many Fans and “Likes”, might become the focus of SEO test strategies.

However, as Weintraub points out it’s early days in terms of cracking the social media search algorithms. But that won’t stop the more innovative and curious SEOs from having a go!

Blog post by Amanda Davie, Managing Director of Reform

Is it an art or is it a science?

June 25th, 2010

Albert –László Barabási is probably not well known in the world of search and that is not necessarily surprising as he is a physicist living in Boston, USA. But he is a physicist with a difference, who employs detailed scientific modelling to help understand social behavioural patterns.

In his research he maps the daily movements of millions of mobile phone users over many months. His latest study of a random 50,000 person subset has concluded that 93% of human mobility patterns are predictable. If he is right, and there is no reason to believe otherwise, that is a big number – in fact that is a huge number.

At this point he seems to be most excited about the prospect for using his ‘data burst’ analytics to model the spread of viruses or road traffic engineering. From a marketers point of view these individual and collective physical travel habits will be of interest, but people’s virtual travel habits are likely to prove even more interesting.

With Google and Facebook representing the most travelled sites online, the brands that can best analyse the ‘data bursts’ of search and social media activity will be best able to ensure that their products and services lie in wait as each consumer makes the next click with their mouse.

But better still, a little bit of reverse engineering will actually inform brands as to the moves that their competitors are most likely to make. This is where the art of pursuing means reversion or trend acceptance will force the data analysts to take a back seat as the business tacticians plot their course.

Blog post by James Kilpatrick, non-Executive Director of Reform

Search Engine Marketing in Korea – International Search Review Issue 3

June 18th, 2010

Reform continues on its world tour with issue number three of the “International Search Review.” After the first two issues covered China and Russia, this one looks at a search market that many western marketers struggle to decipher. Download a copy of the full “Korea Search Review” issue here.

South Korea (like China and Russia) is another one of the top ten markets in the world when it comes to internet population and is a market that adapted broadband faster than most western markets – to the point where viewing TV via the internet is far from a new thing. TV might also be the last chance for Google to crack this market, as rumours circulate about Samsung and Google partnering on a TV and mobile internet service – and “mobile search” usage being something that Naver may be a step behind on.

Still, Naver and Daum are the main search engines in South Korea, and SEO in this market is much less of a consideration for marketers here. For one, SEO is not nearly as important – taking up only a small portion of a search engine’s results. At the same time, it’s not nearly as advanced either, as engines like Naver opt to fill the results with links to their own sites, along with various different types of PPC and paid placements listings. Users are content with this, showing a brand loyalty that reflects in browser usage too (Internet Explorer has a 98% share in this market), thus making the chance of changing user preference even slimmer.

Yahoo!/Overture Search Marketing provides the only real opportunity for western marketers to partake in PPC here (though local sites are still given some priority), while SEO has little to do with tags, content and link strength, but more to do with saturation such as via social media and user generated content.

South Korea is also a big market when it comes to online communities, such as gaming and social networks. Over 90% of South Koreans in their twenties have accounts in CyWorld (the biggest social network in Korea), while Facebook and MySpace have failed to crack the market at all. CyWorld has also become a place where companies effectively promote products, including via endorsements that fans can integrate with.

Download a copy of the full “South Korea Search Review” issue here

Key findings in the document include:

- Search engine usage: Naver 77%, Daum 11%, Yahoo 5%, Google 2% (source: Nielsen, Jan 2010)

- 37.5 million internet users (source: Internet World Stats)

- 95% broadband penetration (source: Arstechnica, 2009)

- South Korea’s two main search engines Naver and Daum have inspired a lot of recent western search engine innovation, such as Yahoo! Answers and Google Universal Search, though both engines serve search results that are predominantly paid links and their own sites.

- South Korean search users demonstrate a different attitude to those in the west; users in South Korea anticipate that their search engine knows what they are looking for, and will find it for them, where as western searchers are more ‘DIY’ and use search engines as tools to find something for themselves.

- Commercial or paid-for search coverage is prevalent in this market. Natural search plays little or no role in this market.

Reform also works with sites that are looking for a global SEO strategy in markets such as Korea. The England 2018 Bid website at www.england2018bid.com recently expanded content across various markets, including Korea.

Search result in Daum

As a result, we are now a featured result in natural search there (result in Daum search shown above) and the England 2018 site appears for Korean language variations of “world cup”, making it the second most common language for search traffic on the site in June 2010 so far (after English).

To get more details on this and everything else, download a copy of the full issue – and let us know any comments/feedback. Contact us, and we’ll get the next issue out to you before anyone else gets it.

Update – Latest news shows that Daum is closing the gap on Naver, with various sources cited at http://www.koreatimes.co.kr/www/news/tech/2010/07/133_69058.html

Also, at the end of June, Google launched Korean voice search – http://googleresearch.blogspot.com/2010/06/google-launches-korean-voice-search.html

While the reviews on how well Google voice search works on your mobile (don’t try using it anywhere loud for instance, such as outdoors) have been mixed, moves like this at least help to give Google some channel that they have a slight advantage on (Google Korea is pushing mobile co-branding as a way to get in this market), so it is something to keep an eye on.

Blog post by Niall Madden, Director at Reform

Google’s “Search Funnels” reporting represent a massive step on in data visibility

June 3rd, 2010

Google recently rolled out a beta of a conversion funnel reporting system that allows AdWords users using Google Conversion Tracking pixels to track conversions to see beyond the last click. This allows us to improve our understanding of what the consumer journey within search looks like. We can see the average time lag between the last click and conversion, the number of clicks on our ads before someone converts, the ads and keywords that they are interacting with first, and the different keywords and ads they’re interacting with all the way to the last click.

This is pretty exciting. Previously, we could only get this level of understanding by implementing a costly consultancy project with floodlight tags, using DoubleClicks Click Path Analysis product or similar, or by engaging a search technology that includes path to conversion analysis as part of their pricing. OK, so Google’s Search Funnels tool only works for Google and not with Bing and Yahoo, and it doesn’t yet seem to be reporting on content network activity, but considering it’s free it’s a pretty big step on.

The implications for search advertisers, especially the smaller businesses who have previously run CPA focused activity within strict profitability targets, are signficiant. Being able to see which keywords don’t cost in on a CPA metric, but fuel cost efficient conversions on other keywords has huge implications for the volume of conversions you are able to drive, and will completely alter the way that we analyse success. We will now be able to analyse what each search term is contributing to the campaign as a whole, wheras before we could only see part of the story.

Looking at the data in some of our client accounts, we’re already seeing some interesting things. Some of the “keyword click paths” (this shows all of the keywords that a searcher has interacted with before converting) contain repeat searches for the same search term, up to 5 or 6 times before conversion. This clearly highlights the importance of an always on strategy, as if you’re not there for the last search your consumer will most likely end up somewhere else! Another example of something strange is that we’re frequently seeing some paths to conversion that start with a brand search, then converts on a generic search. This could be where above the line advertising is driving searches, and then people are then shopping around for a better offer and returning to the site on a generic term once they’ve done so. This highlights the importance of not only making sure you have full brand visibility when investing in other channels, but ensuring you have the required visiblity on generic terms.

We’re very excited about the potential to dramatically improve investment models using this data, and will be keeping our ears to the ground on what other practitioners are doing with the data. Not only are we excited about the potential it has for improving search performance, but it signals a step forward in the sharing of the rich data that search engines hold with marketeers. Data is the driver of insight and as such innovation – so the more steps search engines take in sharing this data with us, the more and more we’ll be able to do for clients.

Blog post by Graham Everitt, Search Consultant at Reform

Thinking outside the search box.

May 28th, 2010

I’m not going to bang on about how great search is, or about how you should make sure that your site maximises the use of SEO with PPC as part of an integrated strategy involving all types of media. Chances are you hear that all the time anyway if you work with us. However, I will look at some of the things that, for me, make natural search a unique experience – not just in marketing terms but in the way that people approach it, the way their minds work.

Clients are becoming increasingly involved with and interested in SEO, which I think is great. I have no idea why some companies still try and make SEO such a top secret operation. By now everyone on the ‘practitioner’ side ought to know that the best projects are the ones where we can help the client understand how natural search truly works, pushing aside the mystique. Once the client understands and believes in it, they are more likely to make changes. Just as the search algorithms constantly evolve, so does the need to clarify with more depth. We want clients to ask about our recommendations, or suggest recommendations of their own, as we’ll be glad to discuss and explain what we feel works best.

Of course, there is never just one right answer. There are so many factors that influence natural search that it is imperative that we continue to think outside of the box. For example, for one of our clients the biggest influence on their SEO traffic is daily news stories. It is not a news site, but if a subject is not on the news then no one searches for their related terms. Another example is a site which sees increased traffic whenever specific episodes of certain shows are shown on TV. The trick is spotting these trends and attempting to capitalise upon them. We’re not necessarily saying look out for every wave of traffic, but when you see one wave coming in, think about how you might catch the next. A referral from a search engine may not result in a sale right away, but other influences can help you convert it into a sale further down the road.

The worst thing you can do in SEO is think “if I do ‘A’, then ‘B’ will happen immediately”, and it is crucial that agencies and clients communicate to avoid this kind of assumption. When clients understand more about the process, hopefully conversations around SEO will go far beyond the ‘As’ and ‘Bs’, to questions such as the right way to link several sites together, or how to sculpt ‘link juice’, ‘page rank’ or ‘link strength’ within a site. Or on the PPC side, whether to use keywords with ‘free’ in them if you are targeting something that users have to pay for.

If you’re keeping score by the way, the short answers are: you can build some strength by connecting your different sites, but it needs to be done in a way that seems natural; for link strength if you don’t want a link to be followed, it’s not going to improve the other links on your page, in fact it can hurt the site overall as retaining link strength is unnatural; and last but not least, for the PPC question, yes, some of the best ‘paid’ conversions came from ‘free’ keywords.

As for the long answers, well that’s another conversation or blog post. Still, here at Reform we like being asked questions, because in the world of search there is always at least one answer…

Blog post by Niall Madden, SEO Director of Reform

The State of Search Marketing Survey – guest comment from Ed Stevenson, MD of Marin Software

May 21st, 2010

Congratulations on your recent State of Search report.  I thought it provided some extremely valuable insight into the big issues facing our industry.

In particular, I was interested in the things that advertisers want to see more of from their agencies. Here’s the full list from the report:

• More insights from performance data, not just impression levels and basic daily reporting
• Better recommendations that can be implemented quickly
• More transparency of data
• More pro-activity overall
• More advice and assistance planning with ATL activity
• Direct access to tools for data without waiting for agency to provide it
• Ability to do more structured testing
• More meaningful (not necessarily more detailed) reporting and analysis
• Better understanding of the client’s company and its products to make PPC campaign changes easier
• More integration between SEO and PPC

What I think shines through here is a growing desire for control: advertisers want more of it; agencies have not always been able to demonstrate they can provide it.

Of course, advertisers have always wanted to know how their search campaigns are performing, but – as the report clearly shows – search spend has increased dramatically both in absolute terms and as a share of the overall marketing mix in recent years. With this growth inevitably comes greater scrutiny and a desire for more intelligence around how search is directly impacting the business.

The report also shows where this appetite for greater control can logically end up – with search being taken in house. Almost a third (32%) of clients are now taking this option and over half considering doing so. Clearly, in some cases this can make very good sense and certainly knowledge of ‘how to do search’ is no longer confined to a small niche of agency specialists – the basics are becoming commoditised.

But I still strongly believe that in many cases agencies can play a vital role in giving an outside perspective and adding creativity to search campaigns that advertisers can benefit from. And in a world where demand for exceptional search talent still outstrips supply, agencies can help clients access the skills of the best people available.  As I’ve written about before on my own blog, I think to succeed agencies need to directly address the issue of control. They need to be more transparent in their reporting. And they need to offer not just information, but insight and intelligence about campaigns and relate that back to the businesses they are serving in a language they understand.

A third of clients already see search as too important to outsource – and they may well be right.  The key to the future of agencies is to develop such a deep understanding of their clients, combined with outstanding creativity, so that an agency relationship no longer feels like outsourcing at all.

Guest blog: Ed Stevenson has worked in the search industry since the early days of AdWords and is now the Managing Director of Marin Software in Europe. Read more about his take on the rapidly expanding world of big search marketing at http://www.bigsearchblog.com.

You can read more about this State of Search Marketing Survey and download the full report here: http://www.reformdigital.com/reform-search-marketing-survey.

The winds of change…

May 14th, 2010

Have you found it strange that so many commentators have been aghast as the new UK government formation has emerged over the last few days? Only a week ago we were off casting our votes at school halls up and down the country – did we realize what momentous change we were about to make at the time? Our vote appears to have delivered a completely new and surprising shape and flavour of government; only time will tell if it will pass the collective taste test.

‘Sense-making’ and ‘sense-guiding’ are how we join up the dots of change, giving meaning to ourselves and others when situations need order. It’s a rather retrospective endeavour, and I’ll give you odds now that future explanations of how our coalition government came to exist will have Gordon’s ‘bigot’ comment woven in somewhere central to the story. We all use it, and as participants in a knowledge-based economy, probably more frequently than most. Our digital world thrives on innovative thinking, surprises, and what can appear like chaos eventually emerging as opportunity. However, the temporal nature of this world throws up anomalies and uncertainties; what is robust and proven today can lost by the wayside tomorrow.

Change is everywhere, and it is no surprise that we seek out some certainties. We need to be able to make informed decisions that can guarantee us at least medium-term stability… don’t we? Whether we are aware of it or not, transformational changes such as our new government are not simply the result of our vote on the day, but a combination of small emergent changes effecting and affecting our environment, social and cultural world views, the economy and even technologies. These changes impact our perception, our ‘sense-making’, of how the shape shifts, with occasionally surprising outcomes.

Reform is in the business of making sense in real time of those incremental changes, whether emergent or planned. We can help realize our clients’ value, potential business development, and increased profitability. Through our process of exploring the business, utilising data, looking at search behaviours and so forth, we develop and deliver planning tools and action plans that enable truly transformational change outcomes, without causing a revolutionary shake down.

Blog post by Mary Keane-Dawson, non-Executive Director of Reform

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