Scalable SMB Search Marketing Reducing OPEX Through

Scalable SMB Search Marketing
Reducing OPEX Through Automation
About TSA
The Search Agency – Overview
•  Overview
–  Founded: 2002
–  Headquarters: Los Angeles, CA
–  Deep Experience in Subscription-Based
Business, Continuity and Direct Response,
IYP/Reseller
–  Series A investment in May 2008 - JMI Equity
http://www.jmiequity.com/news-events/article/
the-search-agency-announces-strategicinvestment-from-jmi-equity/
•  Advertising Councils
–  Member of Google, Yahoo! and Microsoft
Advertiser Councils
–  Regular Google Beta partner
–  Yahoo! Elite Technology Partner (1 of 4)
–  One of 3 alpha partners of Facebook Ads API
–  Beta partner on Facebook Exchange (FBX)
•  Services
–  Paid Search/Search Engine Marketing (SEM)
–  Search Engine Optimization (SEO)
–  Landing Page Optimization
–  Conversion Path Optimization
–  Biddable Display Media
–  Search Retargeting
–  Reputation Management
–  Social Media
–  Integrated Online Marketing Strategy
•  Locations
–  Los Angeles, Providence RI, San Francisco,
Baltimore, Tampa, Houston, Toronto CA,
London UK, Bangalore India, Sydney AU,
Tokyo JP
•  Size
–  Largest independent SEM agency in USA
–  Adage estimated revs $25.9M, 27% CAGR
•  Visit　–  US Website: www.thesearchagency.com
–  Blog: www.thesearchagents.com
•  Product Mix (by revenue)
–  Paid Media (Search & Display) – 55%
–  Organic Search – 28%
–  Consumer Experience – 8%
–  Social Media/Mobile – 9%
Proprietary and Confidential
3
AdMax Local
•  Scalable, enterprise solutions for 4 years in EU, USA and APAC
•  Hundreds of thousands of websites created
•  Tens of thousands of SEM campaigns under management
•  OPEX reductions of up to 90% through automation
•  500-1,000 campaigns per account manager
•  Advertiser retention well above competitive benchmarks
•  Newly launched SaaS version greatly reduces integration costs and time to
market
•  “Taking orders for 2013”
Proprietary and Confidential
4
Reducing OPEX Through Automation
“Long Tail” of SME Budgets
–  Labor intensive “Agency” models adopted by
IYPs/resellers cannot scale
–  High labor costs make it difficult for IYPs to
serve all of their customers profitably, limiting
revenue, and creating long term challenges
>$1,000/mth
–  Automation can deliver significant cost
savings for the reseller while creating superior
outcomes for merchants
<$1,000/mth
Proprietary and Confidential
6
“Agency” Platforms
Labor intensive “Agency” Platforms are designed for large national
advertisers and built primarily around ongoing service fees
Labor Intensive
Traffic
Estimation
Keyword
Research
Ad Creation
Account Setup
Landing
Page
Creation
1.  Agency models use labor not
technology as their unique
selling proposition
2.  High spend levels allow labor
costs to be spread across
campaigns
Proprietary and Confidential
Budget
Management
Keyword
optimization
Ad
Optimization
Customer
Reporting
3.  Query volatility and volume
require frequent monitoring and
adjustment
4.  Competitive market segments
require intensive ongoing
analysis and optimization
7
Automated Platform Models
Automated SEM platforms are designed to service thousands of SMBs of
all sizes using technology to replace labor intensive agency models
Highly Automated
Traffic
Estimation
Keyword
Research
Ad Creation
Account Setup
Landing
Page
Creation
Keyword
optimization
Ad
Optimization
Customer
Reporting
3.  Pre-compiled campaigns
function well in less volatile
local market query space
4.  Low levels of competition
foster a marketplace
receptive to automation
1.  Automated platforms reduce
labor costs by 80-90% and
automate serial actions
2.  Automation supports cost
effective management of low
ad spend levels
Proprietary and Confidential
Budget
Management
8
Internal Labor Cost Comparison
“Agency” Platforms
Automated Platforms
@ 2 hrs/account manual campaign
creation = 2000 hrs per month
15 SEM staff to run campaign creation
Campaign
Creation for
1,000 New
Accounts per
month
2 hours per month per account of
optimization/reporting/customer
management (very low) = 2000 hours per
month for every 1,000 accounts
15 SEM staff to manage each 1000
Campaign
Management &
Optimization
per 1,000 Total
Accounts
Automated production eliminates headcount
Exception handling and QA – 3 heads
3 SEM staff to run campaign creation
Automated management eliminates
headcount
Account management/optimization
monitoring
2 SEM staff to manage each 1000
Month
Campaign
Creation
Campaign
Mgmt
Total
Staff
Month
Campaign
Creation
Campaign
Mgmt
Total
Staff
Month 1
15
0
15
Month 1
3
0
3
Month 2
15
15
30
Month 2
3
2
5
Month 3
15
30
45
Month 3
3
4
7
Month 4
15
45
60
Month 4
3
6
9
Month 5
15
60
75
Month 5
3
8
11
Month 6
15
75
90
Month 6
3
10
13
This example could save $25m per year in Internal Labor costs through automation
Proprietary and Confidential
9
Total Cost of Ownership (TCO) Comparison
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
AdMax Local Total Cost of Ownership
Agency-Type Platform Total Cost of Ownership
By automating the processes associated with campaign creation and ongoing
management, a reseller can reduce total cost of ownership by over 80%.
Proprietary and Confidential
10
The Practical Benefits of Automation
Stage
Automation Benefit
Campaign
Creation
Using pre-compiled AdWords keyword groups significantly lowers
account creation costs and allows resellers to ramp sales without
adding headcount
Ad Copy &
Landing Page
Creation
Automated ad and landing page creation processes speed set-up,
particularly in multi-campaign accounts
Bid Management
Sophisticated bid and budget management tools allow tens of
thousands of SMBs to be efficiently serviced on a daily basis
Optimization
Highly automated account optimization systems allow tens of
thousands of accounts to be optimized simultaneously, dramatically
lowering costs
Account
Management
Underlying automated systems permit less labor-intensive account
management for tens of thousands of advertisers
Proprietary and Confidential
11
AdMax Local
AdMax Local Work Flow
Sales User Obtains a
Quote for Merchant
Order is Submitted in
the System
Order is Fulfilled/
Verified by Sales User
System Deploys
Campaigns and
Webpages
System Manages
Campaigns and
Reporting
Proprietary and Confidential
13
Sales Person Produces a Quote for a Prospect
Proprietary and Confidential
14
Business Areas/Locations are Added to a Quote
In a typical market, AdMax Local includes:
•  2,000-3,000 Business Areas in Business Taxonomy
•  3,000-4,000 Locations in Geo-taxonomy
•  Hundreds of website templates; 100,000+ Keywords, millions of Ad
combinations, billions of website copy combinations
Proprietary and Confidential
15
System Generates Quote Range for Selections
Proprietary and Confidential
16
User Can Save Quote for Pre-Sales Information
Proprietary and Confidential
17
User Can Add Merchant and Budget Commitment
Proprietary and Confidential
18
Reseller Updates Merchant Information
Proprietary and Confidential
19
Reseller Updates Campaign Information
Proprietary and Confidential
20
Automated SEM Campaign Creation
Proprietary and Confidential
21
Google SEM Experience
Proprietary and Confidential
22
Sample Web and Mobile SEM Landing Pages
Proprietary and Confidential
23
Web Page Details to be Included in the Order
Proprietary and Confidential
24
Order Fulfillment Completed
Proprietary and Confidential
25
Self-Service Settings (Templates)
Settings
Proprietary and Confidential
26
Self-Service Settings (Custom Content)
Proprietary and Confidential
27
Google SEO Experience
Proprietary and Confidential
28
Sample Website and Mobile Homepage
Proprietary and Confidential
29
Self-Service UI - Merchant Dashboard
Proprietary and Confidential
30
Reseller Management Dashboard
Proprietary and Confidential
31
TSA Success Story with Platform for 4+ Years
•  Scalable technology to manage tens of thousands of SMB
advertiser search engine accounts
•  Scalable technology to automate the creation of hundreds
of thousands of lead-generation websites
•  Established processes to optimize advertiser accounts with
reasonable cost to our partners
•  Delivery of high-value traffic from agency best practices at
reasonable cost to advertisers
•  Advertiser retention well above competitive benchmarks
•  Google Preferred Partner
•  Discussing limited APAC partnerships for 2013
Proprietary and Confidential
32
THANK YOU
•  Matt Kain
•  CEO Asia Pacific
[email protected]
•  +61 (0)457 510 701