Intouch Spring/Summer 2008
Online search becomes irresistible
As the world’s advertisers prepare to spend more online than they do on TV, 3i’s latest media sector report turns the spotlight on the Web’s most powerful tool – search.
With its pay-for-placement and pay-for-performance model, search is irresistible to many advertisers. In 2007, search spending in theUnited States alone climbed 27% to reach almost US$9bn, with three quarters of that estimated to have gone to Google.
3i spoke to a range of leading figures in the online – and offline – world to explore their views on key topics: why search has seen explosive growth, what this means for companies selling online, and which trends will shape the format’s future direction.
We talked to senior figures from Yahoo! and Google, as well as independent thought leaders like John Battelle, author of seminal 2005 book The Search. You can share their thoughts through podcasts and articles at http://media.3i.com.
In the meantime, here are short tasters of just two of the hotly-debated issues.
Nick Hynes is a pioneer in search marketing. From May 2004 to December 2007, Nick was CEO of the IMW Group, which includes The Search Works (www.thesearchworks.com), Europe’s largest agency dedicated to search marketing services.
“For some clients, The Search Works manages up to a million key words that are entered into search engines. Many travel clients, such as First Choice Holidays, have tens of thousands of products. And when a consumer searches for a villa on Rhodes, they're not interested in hearing about a holiday in Barbados. It's our job to ensure that whenever they search for a product the First Choice option is near the top of the list.
“For tens of thousands of products, working 24 hours a day, seven days a week, that's a huge mathematical load. To do it, you need technology. A big difference from most forms of marketing is that technology is absolutely crucial. If you've got it, and have the skill to know what really works, you can achieve huge returns on investment – far in excess of anything else you can do in the world of marketing.”
Matching format to purpose
With an emphasis on social activity, mobile search finally looks like taking off after years of unfulfilled hopes. Meanwhile directories are proving surprisingly tenacious in their grip on the market for local goods and services.
Steve Ives is the CEO of Taptu (www.taptu.com), a 3i-backed business that is delivering the
possibilities of mobile search.
“While the PC has evolved to become a social device, the mobile phone is a supersocial device. Mobile phones will become the optimum way of accessing social networks because they are always with you and are less subject to workplace usage rules.
“Users will search for content and information that has social significance or lends social currency. When they find a phone number, they will want to dial that number. When they find a song, they will want to download a preview and play it, and share that result with friends.”
Peter Buxton has worked in the world of directories for 30 years, initially with ITT World Directories and, since 1995, as a consultant (www.buxton-independent.com).
“My company, Yellow Pages Today, is involved in a twice-a-year research study across the seven main countries of Europe. One question is, "When you're looking for local goods and services, where do you look first?" The last study showed that 46% of adults would first search in printed Yellow Pages. That compares, for example, with only 18% who would first look in a search engine.
“Online or offline, Yellow Pages is the 100% source – a key advantage nobody else can offer.”