Canaccord Genuity: Search Engine Strategies NY Highlights

Canaccord Genuity: Search Engine Strategies NY Highlights

Canaccord analyst, Heath Terry, attended the annual Search Engine Strategies New York conference over the past three days and attended presentations by Google (Nasdaq: GOOG), Yahoo! (Nasdaq: YHOO), Microsoft (Nasdaq: MSFT), comScore (Nasdaq: SCOR), iCrossing, Vizion, ClickEquations, Levelwing, and Marin Software.

Terry said, "2010 a big year for paid search evolution at Google - New trends in paid search are becoming more prominent in 2011. New ad formats such as Sitelinks, product extensions, and comparisons, which are now only available in the UK, are increasing in prominence. 10% of queries conducted have at least one new ad format, according to Google’s Dan Friedman. Google’s Sitelinks ad format provides on average a 30% increase in click-through rate for twoline ads. Monetization models are being increasingly driven by cost-per-action (CPA), not costper-click (CPC). Forms of audience targeting are developing, including retargeting. Google’s DoubleClick Search V3, in beta testing and expected to launch later this year, allows advertisers with budgets of at least $100,000 to manage large accounts (1 million keywords) across multiple platforms in an efficient manner."

"Google Mobile developing - Google estimates that mobile searches have increased 500% in the last two years, and currently one of every three mobile searches is local in nature. Google’s expects click-to-call enhancements to improve its locals business and noted a conversion is 10x more likely from a call versus an ordinary search. Still, mobile CPCs are roughly a third of desktop CPCs. Mobile e-commerce is not as far along, largely due to issues with mobile payments, according to Google’s Jessie Marmon Haines."

"2020 Internet market projections provided by Google - Google projects that global internet users will total 5 billion in 2020 (vs. 1.9 billion today). It also estimates global mobile subscribers will total 20 billion (vs. 5 billion today) and the amount of digitally transmitted information globally will reach 800 exabytes vs. 53 zettabytes today, implying a 162% CAGR."

"Results of Yahoo!/Bing Search study surprising. Counter to much of the discussion around the relationship, Marin Software’s study on the impact of Yahoo!/Bing’s search alliance suggests Yahoo!/Microsoft is bridging the competitive gap that exists with Google. The study examined 800 North American clients from August through December 2010. Post-transition, the alliance increased paid search impressions 4% and click share 2%. Alliance conversion rates jumped 12% though CPC dropped to 20% below the industry. Trends in January and February are “holding up directionally.”"

"Search will not be replaced by social - Panelists unanimously agreed that social networks will not replace search engines, at least during the next five to 10 years. In February, over 10 billion and 3.5 billion searches were conducted on Google and YouTube, respectively, versus over 500 million on Facebook."

"Microsoft’s adCenter trumps Google’s AdWords, according to panel - Panelists commented that Microsoft’s adCenter had a proper publisher performance report, unlike Google AdWords, and targeted effectively demographically, unlike AdWords. adCenter also diagnosed problems more effectively."

Canaccord has a BUY rating on GOOG and HOLD recommedation on YHOO

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