ReachLocal Australia CEO Steve Power's presentation on making the most from online advertising for the SME Tech Summit, Sydney, 1 December 2009

1. How to make the most from online advertising Detailed insights into how to get results SME Technology Summit 2009 Steven R. Power Chief Executive Officer Tuesday 1st December 2009 1

4. What does ReachLocal do?2

5. The internet has changed the way consumers search for your business Search is the #1 resource used by consumers looking for a local business Over 80% of local searchers follow up offline via a phone call or in-store visit Over 200,000,000 people searching online Search is the #1 resource used by consumers looking for a local business Over 80% of local searchers follow up offline via a phone call or a physical visit Over 10,000,000 people searching online 3 Source: Pew Internet & American Life Project, comScore

6. Who’s searching for your services? 4 Source: Google Aust. 2009 (1) Neilsen/NetRatings 2005-2006 (2)

7. Understand the purchasing funnel Display Search 5

8. Where consumers find you online 6

9. Organic vs. sponsored results Search Engine Optimisation Search Engine Advertising 7

11. Who’s going to respond to the sales enquiries; online, email, phone calls

12. Do you have an answering machine?

13. Can your processes and infrastructure scale?

14. How will you fulfill the additional orders?

15. How will you handle overflow?

16. Systems

17. Staff

18. When do people shop online?

19. Welcome to 24/7

20. It’s a good idea to prepare before you start doing Search Engine Advertising

21. Case Study: Auto Lift Garage Doors8

23. Branding and awareness

24. Reduce marketing costs

25. Increase sales

26. Are you trying to generate qualified enquiries?

27. How many leads do you want?

28. What does a good enquiry look like?

29. How many can you handle?

30. What’s a lead worth to you?

31. Are you trying to focus on a particular product or service?

32. Do you want to focus on a specific high margin line?

33. Is there anything suppliers in your industry may normally provide that you don’t want to sell?

34. What is a good return on your marketing investment?

35. How do you track and measure it?

36. Case Study: Coral Reef Pools9

37. Work out what success looks like 10

38. Work out what success looks like 11

39. Work out what success looks like 12 Source: Bancorp – Piper Jaffray 2007

40. Define your target audience How far are customers willing to drive? How wide is your service area? Where is your target audience? How many locations do you have and where are they? What types of advertising do you use now? What is your average transaction value? How much business can you support? 13

42. What sort of property do you need to do Search Engine Advertising?

43. Case Study: BMW Precision AutomotiveGeographic Coverage Webpresence Contact & Key Information Easy Navigation Product or Service Key Images Do you have a website? Does it reflect your business today? Is it an information site or a sales site? What is the geographic service area that you want to cover? Do you have local market credibility? Is clear and easy to contact your business? Is it on every page? Does your copy have a call to action? Is your website visually appealing, does it encourage potential buyers? Is it easy to find key information and use the features on your website? What are you trying to sell? Do you want to focus on a specific high margin line? Will separate landing pages be more effective? 14

44. Review your web presence "Once searchers arrive on your landing pages, you have 13.2 seconds to convince visitors that they are on the right site." Gordon Hotchkiss CEO Enquiro Search Solutions, Inc. “With every click your customer has to take to find what they’re looking for, you risk losing 30% of your sales.”M. Locke President Range Online Media 15

46. 87% access search sites, and of those

47. 79% research the purchase of products and services

48. 42% are seeking a local business to buy something offline16

50. Set your budget dependent upon the size of your business and marketing needs

51. What are you currently paying per lead?

52. Do you track it?

53. How much can you afford to pay?

54. How do you calculate ROI

55. Spend on PPC / No. of qualified Leads = Cost per Lead (CPL)

56. CPL / Conversion rate = Cost per Acquisition (CPA)

57. CPA < Available margin on a sale

58. What about lifetime customer value?

59. Use the available online budgeting tools

60. Google AdWords Tools

61. Yahoo Search Marketing Tools

62. Case Study: Balmain Rentals17

64. Google AdWords Keyword Tool

65. Yahoo Search Marketing Keyword Assistant

66. Think like a searcher

67. Broad match terms, but

68. Expensive terms can burn budgets

69. Geo-Concatenation

70. Use doing words

71. Negative keywords

72. Send searchers to the correct landing page

73. Long tail

74. It’s an iterative process

75. Monitor performance and manage your list

76. Understand the value of each keyword in your bid management strategy

77. Case Study: Dentists & Cosmetic Surgeons18

79. Writing clear & concise ads that will attract a user to your ad over competing ads

80. Use your text ad as a filter

81. General tips to remember when creating your ad text

82. Do

83. Focus on who, what, where and why

84. Highlight offers and benefits

85. Use dynamic text to insert searched keywords

86. Use strong performing keywords in the ad title

87. Incorporate the geographic area you service

88. Explain your service

89. Don’t

90. Include company name in ad title (Nb. ok when using dynamic text ads)

91. Use superlatives

92. Include offers not listed on website

93. Use gimmicky language e.g. free, free, free

94. Case Study: Mobile Computer Services19

96. Track your online advertising performance and calculate ROIImpressions Positioning Click through Visits Conversions Sales ROI Regularly review outcomes and incorporate learning’s Is your ad being seen by the right people at the right time? Are you prominently positioned? Position #1 is not always the best How well is your ad performing? Aim for 2.5%+ click through rate What’s happening when people visit your site? Are they staying? What are your conversion rates? Click to event; enquiry, booking, quote, phone call, email, sale Are you tracking the number and value of sales from your campaign? Is the campaign paying for itself? Is it worth increasing your budget? 20

98. Accredited by the Publishers to set up and manage your PPC campaign for you

99. You can focus on running your business…21

100. What does ReachLocal do? ConsumerSearches Online… Clicks Through to Your Site… Sees Your Offer & Contacts You Purchases Offline. Sees Your Ad… Our experts handle all the complex campaign details and optimise daily for best performance. ReachSearch reaches over 97%* of where consumers search online. Our technology tracks all consumer actions as they click through to your site to see where they go and what they do. Our detailed reports show the actions consumers make from your site, including phone calls, web forms, email, and more. ReachSearch provides a proven return on investment with lower cost-per-acquisition than traditional advertising. 22 *Source: Hitwise