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Thriving in a difficult climate
An innovative approach to Paid Search charging models
Agenda
•   What you pay your Paid Search Agency to do
•   Paid Search Agency Charging Models
•   How Campaigns are Optimised
•   The Advantages of Value-Based Remuneration
•   The Challenges of Value-Based Remuneration
•   Suggestions on how to Structure Yours
Upload to Engines




Develop Campaign                               Search & Find




                                            Complete Transaction
Pay Service Provider




                       Review Performance
Traditional Charging Model
Media Spend




                 Value-Based Charging Model
Revenue/Profit
Client       Traditional Charging Model     Value-Based Charging Model
         £300.00


         £250.00


         £200.00
Profit




         £150.00


         £100.00


          £50.00


           £0.00
                        1    2       3       4       5      6      7       8      9     10
                                          Search Engine Ranking Position
Agency Risk

Client Risk

Agency Profit

Client Profit

Agency Commitment

Client Commitment
Sales Funnel




               Search Engine




                               Goal Setting




                                              Measurement
Levels of Tracking Sophistication
                 7
                 6
Sophistication




                 5
                 4
                 3
                 2
                 1
                 0
Goal Setting




Profit Share                  Full Support
10




                         Sri Sharma | Managing Director | Net Media Planet

                         T: + 44 (0) 20 3008 8321
                         M: + 44 (0) 79 39507 664
                         E: sri@netmediaplanet.com
                         W: www.netmediaplanet.com
                         Twitter: srisharma




Private & Confidential

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Value Based Charging Models for Paid Search, Net Media Planet , NMA Interactive Summit 2008

  • 1. Thriving in a difficult climate An innovative approach to Paid Search charging models
  • 2. Agenda • What you pay your Paid Search Agency to do • Paid Search Agency Charging Models • How Campaigns are Optimised • The Advantages of Value-Based Remuneration • The Challenges of Value-Based Remuneration • Suggestions on how to Structure Yours
  • 3. Upload to Engines Develop Campaign Search & Find Complete Transaction Pay Service Provider Review Performance
  • 4. Traditional Charging Model Media Spend Value-Based Charging Model Revenue/Profit
  • 5. Client Traditional Charging Model Value-Based Charging Model £300.00 £250.00 £200.00 Profit £150.00 £100.00 £50.00 £0.00 1 2 3 4 5 6 7 8 9 10 Search Engine Ranking Position
  • 6. Agency Risk Client Risk Agency Profit Client Profit Agency Commitment Client Commitment
  • 7. Sales Funnel Search Engine Goal Setting Measurement
  • 8. Levels of Tracking Sophistication 7 6 Sophistication 5 4 3 2 1 0
  • 10. 10 Sri Sharma | Managing Director | Net Media Planet T: + 44 (0) 20 3008 8321 M: + 44 (0) 79 39507 664 E: sri@netmediaplanet.com W: www.netmediaplanet.com Twitter: srisharma Private & Confidential