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Premium member Presentation Transcript Search Engines & Search Engine Marketing : Search Engines & Search Engine Marketing Search Engine : Search Engine Search Engines as per definition are information retrieval system designed to help find information stored on a computer system. What is a Web Search Engine? : What is a Web Search Engine? A tool designed to search for information on the World Wide Web. Search results are usually presented in lists and are called hits. Information may consist of web pages, images, information and other types of files Some top search engines (usage for all purposes) : Some top search engines (usage for all purposes) Google Bing (Microsoft’s new search engine) Yahoo Altavista Cuil (pronounced as cool) AOL Search (Now powered by Google) Live Search And many others How does a web search engine work? : How does a web search engine work? A Search Engine contains three parts: 1) Web Crawling First part is the spider which is also called the crawler or bot. This spider part visits a web page, reads it, and then follows links to other pages within the site. This process is often referred to as crawling or spidering. Crawling of a website is done on a very regular basis, frequency of which is determined by the frequency with which website adds the content. It can vary from once in a month to several times in a day. The spiders visit a website following links from other website or website submission it received. Slide 6: 2) Indexing The content that spider finds is sent to its database or index as it is popularly known. This index is like a huge book that contains a copy of web page or cache, that the spider finds out. It also stores the structure and the way pages are linked to each other. This information would be updated every time there is a change in content or linking. There could be interval between spidering and indexing which varies from site to site and engine to engine. But until indexed, the web page would not be available for the search terms. Slide 7: 3) Searching Third part of a search engine is search engine software that works behind the interface when we use a search engine. This software will sift (filter) through the trillions of indexed pages to match the search query that user has asked. The pages are ranked by search engines and the search results are based on this ranking and relevance to search term. This is how a search engine determines what order shall be listed for a particular search. Global Search Engine Market Share : Global Search Engine Market Share [Source: comScore] Search Engine Marketing : Search Engine Marketing Search Engine Marketing definition: A form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages. According to IMRB report 2007, 60% of the users do not read beyond the first two pages to look for the required information. Thus it is very important for a marketer to mark his presence in the first few results itself to attract the target audience. Search Engine Marketing methods : Search Engine Marketing methods Search Engine Optimization (SEO): A process of improving the volume or quality of traffic to a web site from search engines via "natural“ search results. It involves editing its content and HTML coding to improve its relevance to specific keywords. Paid Placement (pay per click): Advertisers pay their host only when their ad is clicked. Also known as sponsored links. Paid inclusion: The search engine company charges fees related to inclusion of websites in their search index. Notable exception is Google. It displays the links on the right side of the window and they are known as sponsored links. Advantages of Search Engine Marketing : Advantages of Search Engine Marketing Visibility: Enhancing visibility in domestic as well as International markets. Quicker turnaround time: Online Internet user will click on an advertisement usually when he/she is looking out for that particular service/ product so this lead could be converted into a customer. Effective outreach: The ad appears only when the user types in a query for the desired product/service thus the reach is more concentrated to the people who need it. High ROI: A marketer is charged only for the advertisements which are clicked. They have to buy out keywords and it is up to them which keywords to buy. Search Engine Marketing Industry: Global Scenario : Search Engine Marketing Industry: Global Scenario [Source: SEMPO survey, Dec-2008] Growth factors : Growth factors Increased emphasis on branding value of search Aggressive marketing strategies by Search Engine companies. Extensive branding exercises luring the advertisers and also internet users. SME focus on search: Helps SMEs go to gain visibility amongst large enterprises. Growth of niche and local search Advent of search engines providing information of local areas. Rising cost per click Increasing expenditure in SEM Increase in demand for online advertising Increase in number of Internet users has increased demand for online advertising Emergence of India as a preferred destination for SEM Outsourcing : Emergence of India as a preferred destination for SEM Outsourcing Benefits of outsourcing to India Low cost service Lower labor costs helps lowering overall cost. Professional expertise Large talent pool of IT experts in India Directed focus By outsourcing SEM to other companies, organizations could focus on their main objectives and core competencies. Slide 15: Less capital-intensive No need for capital expenditure on infrastructure as well manpower training and recruitment as it is responsibility of organization that has been selected for outsourcing. Commercial benefits Outsourcers are able to delegate work without having outsourcing agency on the payroll of the company Momentum in work done The outsourced work is done on a contractual basis and thus the time required for doing SEM work is quite less, if outsourced, in contrast to executing it in-house. SWOT of Indian SEM Industry : SWOT of Indian SEM Industry Strengths Lower Cost Adequate manpower in IT Ahead of alternate outsourcing hubs Google has introduced a certificate program called Google Advertising Professional and India has more number of GAP professionals than other outsourcing hubs. Slide 17: Weaknesses Higher training requirement SEM work requires a lot of training as the activities require deep understanding of business-specific context. Organizations tend to invest less amount of time in training. Paucity of GAP qualified manpower The number of GAP qualified manpower is not increasing as per the demand and there is continuous shortage of skilled professionals. Slide 18: Opportunities Growth of Indian economy Despite the economic downturn the Indian economy is expected to grow at a fair enough rate. India’s GDP is likely to overtake certain developed economies like France and Germany by 2015 (Source: Goldman Sachs reports) Young India 30% of India’s population will be between 25-44 years of age in 2020. Thus this young and energetic manpower resource offers a huge potential to cater to the outsourced work. (Source: Goldman Sachs reports) Slide 19: Growth in IT/telecom infrastructure The growth in the IT/Telecom infrastructure has facilitated good band connectivity with the rest of the world. Upward swing in the tele-density and internet penetration. Thus companies into outsourcing can connect to the clients without much difficulty and at cheaper rates. Growth in Internet as a media As per FICCI’s reports, Internet advertising is expected to show the highest growth at 43% by 2011 of all the media segments. This opens for huge opportunities for the companies to outsource their work to Indian companies. Slide 20: Threats Apprehensions of Data security With few instances of data leakage in BPOs, organizations doubt the integrity of Indians and thus fear in outsourcing their work to India. Threat of loosing expertise Organizations who wish to outsource fear of loosing their expertise to India. They fear that they can loose their client base and team more easily to Indian companies if the latter set up a competitive company. American Government’s policies against outsourcing. Erratic behavior of exchange rates Exchange rate between US $ and INR have been irregular lately. Thus any long-term predictions regarding economic relationships between domestic and foreign organizations are tough to chart. Search Engine Marketing Industry in India : Search Engine Marketing Industry in India Comparison of Internet and SEM growth in India [Source: I-Cube 2008] Growth Expected : Growth Expected Source: SEMPO Reasons for growth in SEM in India : Reasons for growth in SEM in India Increase in Internet user base With mere 4.9 Million claimed Internet users in 2000, the base has grown to around 50 Million in 2010. Increase in search For any information search online search engines are used thus there is tremendous increase in demand for online search. Increase in awareness Google’s initiatives and SEM workshops like Search Camp has lead to increase in awareness level of SEM. Increase in sectors employing SEM tactics The benefits of SEM have attracted various organizations to use it to increase their visibility. Clientele for the Industry in India : Clientele for the Industry in India Of the total client base, the domestic clients account for almost 75% of the total clientele and 25% are international clients. The countries who outsource their SEM work to India are, primarily, South East Asia (Malaysia, China, and Singapore), USA, UK, Spain and Middle East (UAE, Saudi Arabia). All clients are not influential in driving the organization’s revenues. ‘80-20 rule’ is applied here, i.e., 80% of the revenues come from 20% of the clients. The portfolio of domestic clients majorly comprises verticals from BFSI (banking, financial services and insurance), travel, major portals and education Issues in SEM industry in India : Issues in SEM industry in India The industry which looks so promising and shows high growth prospects, demands intake of huge manpower to cope up with the growing demand of SEM outsourcing among Indian organizations. The industry is short of this manpower not only at the junior level but also at the middle and senior level management. According to I-Cube 2008, the shortage at junior manager level is 150 %,at middle manager level is 100 % and at senior manager level is 100 %. Lack of awareness among marketers about potential of this dynamic medium of advertising. No concrete research work carried out to support the effectiveness and reliability of this method of marketing. The Future of SEM in India : The Future of SEM in India It is yet to achieve its full potential given the expansion expected in search and the Internet user base in India. Expectation of transformation of Internet medium to a dynamic form. Agencies such as online ad networks may assert their existence. More number of organizations across various sectors expected to spend more on SEM. Methods of online advertising would be changed by SEM. At present, search engines are capable of understanding just the textual language. With the advent of newer technologies, it is very likely that search engines will be able to understand pictures and visual data. Slide 27: Thank You You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.