One of the more enjoyable things we get to do on the ‘Digital Marketing Inner Circle” is interview interesting people I meet and get to know by being involved with the industry. This interview is with Motoko Hunt, Founder and Japanese Search Marketing Strategist. Born and raised in Japan, Motoko is now the chair of SEMPO Asia and has been the co-chair of SEMPO Japan since 2005.  She’s been active in this industry for at least ten years and seen a lot of changes happen.  Over the years she has found her niche in Japanese Search Marketing, including SEO and Paid campaign. I was fortunate to be able to take of her time and posed a number of questions to her.

Q: How did you become involved in the search industry?

Back in mid 90’s, I used to localize US companies websites and handing their online marketing such as site registrations, banner ads and press releases targeting Japanese market. As the market shifted and technology advanced, I started to focus on the SEO/SEM, and established AJPR in 1998.

Q: How can you use search to benefit smaller clients?

Apart from the budget size and maybe the manpower, the great thing about the search marketing is that it’s a fair game to everyone regardless of the company size. The search marketing can expand their market reach (from local to nationwide or even worldwide), improve the communication with their existing and potential clients, and help business owners to make an efficient and smarter decisions on investment. I believe that the search is the most effective marketing tool for your money, if you execute it right.

Q: Do you think it’s more difficult to keep up with industry trends in search marketing than it was a year ago? Why or why not?

I don’t think it’s more difficult, but I think that the type of the changes in trends are different in recent years compared to what we experienced in past. Up until a few years ago, the trends were mostly about the engines and the search. Now, integration of the different marketing outlets (web, search, social media, press releases, off line ads, etc) became more important than ever. It’s not just about SEO or Paid campaigns anymore. It’s like, “Ok, we have some experiences with the search marketing, and know how it can benefit us. Now it’s the time to coordinate it with other marketing outlets to create a campaign that will really benefit the business.”

Q: Tell us about a successful search marketing campaign that you’ve run…what made it work? What made it fun? How did it benefit the client?

One of the success stories of my clients is that they increased the conversion rate from the website by 130% within 6 months after the campaign started. We optimized the site to rank within top 3 in both Yahoo Japan and Google Japan with 95% of their target keywords, improved the landing page content and the internal linking. The fun part was being able to show the great results in ranking, increasing number of accesses to the site from search, and the conversion rate to the client to make them happy and to feel that they made the right choice to invest in the search marketing.

Q: How important is it to be “visible” in the industry these days?

Very important even if you are only targeting the local market. Various survey results show that most people search the web to obtain the information about the services or products that they plan to purchase. More visible you are in search, better chance you have to interact with the potential customers to influence their buying decision. Even in the markets where people still transact off-line, they do research online. I think visibility in the industry is very important.  Many potential customers tend to gravitate to “industry experts” they see at the various conferences.  Even more important is to have your thought leadership represented with blogs and articles.

Q: How does link building fit into social media? Does PPC fit in at all with what you do?

I don’t like using social media as a link building platform to improve your PR. When people use it to build links, it often leads to link spam, and destroy the user experience. If the users don’t like what they experienced there, they won’t come back, and it would defeats the whole purpose of “social media”. The links to your site/pages in social media really become valuable when the links are put on the page content such as blog body from a relevant site, and not in the comment section. The paid campaign could bring some successes through both keyword match and the content match on social media sites. Be selective with which social media sites to run your content match campaign.

Q: Have you used any “questionable” techniques in search marketing?

Nope. I don’t chase the algorithm, either.

Q: What industry trend leaves you cold and why?

Not a particular trend, but when a new trend comes in town, many people stop what they were doing and start to chase that new trend. It frustrates me. New trend simply means there is one more thing that you may need to consider. Those companies have successful website and the paid campaign know the importance of covering the basics and of having a solid project goal.

Q: What is the best part of your workday and why?

End of the day? LOL. One of the best part of my workday is to reporting the improved results to the clients. SEO and SEM are continuous efforts as the market changes and your competitors always improving their sites and campaigns, it’s very important to be able to bring the continuous improvements to all aspects of the success measurements such as ranking, conversion rates, and saving client’s money.

Q: What advice would you give to young women trying to make a name for themselves in SEO right now?

I’ll give the same advice that I give to my son and daughter. Whatever you decide to do, work hard and study hard to become very good at what you do. There’s no short cut. Networking definitely helps especially in this industry, but if you don’t have the knowledge and the skills, you won’t go much far. Believe in yourself, motivate yourself and push yourself. You are your best cheerleader!  A blog is often a great way to start making a name for yourself.  If your ideas resonate with people they will follow you and the more you are followed the greater your exposure.

Dr Mathew McDougall from SinoTech Group (www.sinotechgroup.com.cn) was speaking at the SMX about Search Marketing in China. At the event, the talk was focused on the positive growth in Internet users in China. Collectively, the speakers were promoting that it is now right for marketers to take the plunge and launch digital campaigns in China (search, social etc) The various speakers outlined  positives and negatives for search marketers in China. These positives and negitives were nicely consolidated by Chris Sherman in his post on Search Engine Land. (Listed below for convienience).

Positives:

• China is of the largest markets in the world, with the most online users of any country (~250 million and counting)
• Increasing use of search engines by Chinese internet users
• Comparatively inexpensive options for search marketers in relation to other markets in the world
• Relative lack of sophisticated competition; relative ease of capturing top positions in both organic and paid search result listings

Negatives:

• Relative complexity of Chinese language (and multiple dialects) requires sophisticated knowledge and/or strong partnership with local marketing experts
• Lack of transparency on the part of market leader Baidu requires good relationships with company reps or agencies with good connections
• Lack of maturity in E-commerce poses challenges for direct-response or retail oriented search marketers

In the presentation by Dr McDougall, he spoke about companies now establishing search marketing campaigns in China and increasing looking to expand their budgets and the number of keywords being managed. He used a case study to highlight how one consumer electronics brand is now doing campaigns that have tens of thousands of keywords and there for needs tools and technologies to establish, bid, manage and monitor results/campaigns.

Overall, a great indication that search marketing is alive and well in China. If anyone else was at the event then would be interested in your views and comments.

Digital adspend in China will overtake both newspaper and outdoor advertising by the end of this year, with the gap set to widen in 2009, according to figures from GroupM.

The media group’s ‘This year, next year’ forecast predicts that the combined spend for internet and other digital advertising (principally mobile and LCD screens) will reach $3.6 billion this year, and $5.2 billion in 2009. In contrast newspaper adspend is projected to show steady, if modest, growth from US$3.2 billion in 2007 to $3.6 billion in 2009.

The adspend for out of home, meanwhile, is expected to reach $3.1 billion in 2008, growing slightly to $3.9 billion by the end of 2009.

The boom in digital advertising is partly responsible for the declining share of total media occupied by television. While TV will remain the dominant medium in terms of advertising dollars (projected to rake in almost US$20 billion in 2008 and $23 billion in 2009), its share of total media is set to decline, from 65 per cent in 2007, to 63 per cent in 2008 and 61 per cent in 2009.

Source: www.brandrepublic.asia

I read with interest the story on Venture Beat that said yet another U.S. web company was struggling. They sited the quitting of the MySpace China chief executive Luo Chuan as evidence of a failing company.  The general view of why MySpace had difficultly in building a market precence in China and I suggest it comes down to fundermentally not getting the localisation right…. MySpace provided translations of its English-based site into other languages and it invested in building out teams to focus on promoting and selling ads in China. But it appears that this “localization” didn’t go so far as to let regional managers make significant changes to the translated versions.

This is in contrast to Facebook and hi5 who let users recommend their own translations, which helps ensure that things like popular colloquialisms make it in. They also polish those version with the help of professional translators. 

Friendster has focused on translating the site into Asian languages, to help it solidify its market share in the region (most recently, it introduced a mobile version of traditional Chinese). It boasts millions of ethnic Chinese users in other parts of Asia, but it’s not clear if that’s translated to more users in China.

In sum, given MySpace’s existing localization strategy and the trouble it and other U.S. companies have in reaching Chinese users, it seems to me that MySpace could have done well to try and do more with localising MySpace.

Luo Chuan is said to have left to join a Chinese based video startup.

Yahoo is opening up its search engine vault and letting third parties develop customized Web searches using its own technology. Build your Own Search Service (BOSS) encourages start-ups, Web developers and anyone else to build and launch Web-scale search products that take advantage of the Yahoo Search index. Yahoo is giving the keys to its crawling and indexing capabilities along with ranking and relevancy algorithms to developers in the hopes to increase its own search market share while encouraging the next step in search engine functionality.

It is interesting to see the Australian Telco, Telstra Corp Ltd (ASX: TLS.ax) , Australia’s largest telephone firm, continue to expand its presence in the Chinese online advertising market with majority stakes in two Internet businesses.

Telstra said it had taken 55 percent stakes in auto site operator Norstar Media and in Autohome/PCPop, which operates an auto site and digital device site.

Telstra said the acquisitions, in addition to its SouFun real estate Web site, will give the firm a strong strategic position in the internet advertising market. Chief Executive Sol Trujillo told Reuters in February he was on the lookout for more online acquisitions in China.

Trujillo said in a statement on Friday the two acquisitions cost less than half the $254 million it paid for a 51 percent stake in SouFun in 2006.

SouFun, China’s top real estate and home furnishing Web site, is managed by Telstra’s directories and online advertising business Sensis.

“Telstra now owns majority interests in three of the leading Chinese companies operating in the three key online advertising industry segments: real estate, auto and digital services,” Trujillo said.

Telstra said online advertising revenues in the Chinese auto segment are predicted to rise from $230 million this year to more than $690 million in 2012. ($1=A$1.05)

Given this Telco’s has deep pockets I am guessing that they are looking for more Chinese vertical web properties.

In a new filing with the SEC, Yahoo spells out the terms of the search-advertising agreement it announced yesterday with Google. Most of the filing fleshes out known details about the agreement. But it also discloses something Jerry Yang and Sue Decker didn’t want to talk about yesterday. The deal includes an $83 million escape clause for Google:

Google may terminate the Services Agreement if, after ten months after the Services are first launched, and each month thereafter, the gross revenues recognized by Google under the Services Agreement are less than $83,333,333 for the four prior calendar months.

In other words, Google has a minimum guarantee of serving at least $83 million worth of ads through Yahoo on a rolling 4-month basis, or else it can walk away. That’s a pretty tiny threshold, considering that Yahoo’s quarterly U.S. revenues are $1.3 billion. The amount comes to about one percent of Yahoo’s total projected revenues for 2008. (When Yahoo president Sue Decker was asked about minimum guarantees yesterday during a conference call, she wouldn’t comment).

Google also negotiated a $250 million kill fee if the agreement is terminated within two years because of a “change in control” of Yahoo (i.e., a sale). Curiously, if Yahoo is acquired by Microsoft, it doesn’t have to pay the fee. Thus, this single clause means that anyone other than Microsoft might have to pay up to $250 million more to buy Yahoo.

If the Services Agreement is terminated by either party within 24 months of the Effective Date as a result of a Change in Control of Yahoo! (other than a Change in Control triggered only by Microsoft …), Yahoo! is required to pay to Google the sum of $250,000,000

The agreement also explains Yahoo’s discretion in deciding how, when, and where to display Google ads. It also goes into how the deal is structured. There are two portions. Google is to pay Yahoo both a variable and fixed percentage of the gross revenues it generates through the deal. The variable percentage is based on monthly targets, presumably on top of a fixed percentage. The actual percentages of the revenue split was not disclosed:

Under the Services Agreement, Yahoo! has sole discretion to choose which search queries to send to Google and is not obligated to send any minimum number of search queries. Yahoo! also has sole discretion to decide on which pages to display ads provided by Google through its AFC Services. In addition, the Services Agreement is non-exclusive, and expressly provides that Yahoo! is not prevented from implementing any other advertising, promotion or marketing service or monetization method, including any that are the same as or substantially similar in nature to the Services or displaying comparable advertisements. Yahoo! also has sole discretion with respect to the placement and location of ads generated from the Services, the number of ads requested and the formatting of ads. Additionally, Yahoo! may serve its own ads or third-party ads alongside Google ads.

Google will pay Yahoo! a percentage of the gross revenues generated from AFS Services on the Yahoo! Properties, with such percentage adjusting based on specified monthly gross revenue thresholds, and with respect to the Yahoo! Partner Properties will pay a similar percentage of gross revenues less a separate specified percentage. Google will also pay Yahoo! a fixed percentage of gross revenues generated from AFC Services on the Yahoo! Properties and a fixed percentage of gross revenues for AFC Services on Yahoo! Partner Properties.