1. The now and future of SEM Bill Hunt President, Back Azimuth Consulting Board Member Search Engine Marketing Professionals Organization (SEMPO) IMS Summit October 8 th, 2009

2. SEM Today

3. Worldwide Advertising Spending By Media, 2009 & 2013

4. Source: eMarketer,US Online Advertising Spending,Report, October 2008 $3.85b (38%) $10.78b (42%) U.S. Online Advertising Spending Total Dollars in Billions by Format, 2001 - 2012 * Projected PAST $19.65b (47%) FUTURE $0.25b (3%)

5. Source: Search Engine Marketing Professional Organization survey of SEM agencies and advertisers, Nov 08-Jan 09. Global Results. Advertisers n=229 SEMPO Survey: Advertisers Plan to Increase Spending on Search Ads Moderately in 2009

6. Search is the Most Effective Source: Forbes

7. Expected Allocations next 6 Months Source: Forbes

8. Why Search Marketing will Grow The global recession will force companies to evaluate more cost effective means of marketing Companies are starting to understand the “direct to the consumer” benefits of Search Marketing. Digital asset optimization will gain awareness allowing companies to leverage video and social media sites more effectively Evolution of digital marketing is enabling an awakening to the benefits of search marketing and social media

9. The Future

10. “We’re moving away from the current mass marketing model, away from push and toward pull.” - A.G. Lafley, CEO, The Procter & Gamble Co.

11. Consumer Intent “Understanding the Searcher”

12. Intent Modeling Overview 23 Transform large amounts of unstructured keyword research data into semantic maps of customer interest 1 Prioritized keywords aligned to business goals and customer interest Informed messaging strategies and creative content Optimized information architecture and website content

13. The Searcher’s intent Auto Insurance (3.8m) Quotes (47%) Price (27%) Functionality (6%) Vendors (11%) Cheap auto insurance Auto cheap insurance Discount auto insurance Compare auto insurance Auto insurance quote Auto cheap insurance quote Auto insurance plan quote Free online auto insurance quote Auto insurance online Online auto insurance Insurance auto auction Auto insurance company Progressive auto insurance All state auto insurance Geico auto insurance

14. Brand Engagement & Consumer Need “Stain Removal” 100,000+ related searches

15. Digital Asset Optimization

16. “Maximize Intersection Points”

17. Leverage Searcher Stimuli Drive to Search Social & Word of Mouth Mass Media Need or Wants Motivating people to seek out “more information”

18. Search Wiki Real-time Twitter results Store locater Organic results Today… Better answers, faster Video Results Including stock quotes, and site links Local Results

19. It’s an always on network out there.

20. Brands need a new model to be successful With the consumer in control, success will be built on creating a connection.

21. Thank You! Bill Hunt President, Back Azimuth Consulting Board of Directors, SEMPO email: bill@whunt.combill@whunt.com Twitter: @billhunt Blog: www.whunt.com