Covario and Semphonic Announce New Solution to Improve Transparency of Search Marketing Performance for Large Advertisers
New Offering is Expanded Version of Covario’s Paid Search Insight Solution, Which Delivers Holistic View Into Paid Search Performance for Large Advertisers
Date: 1/23/2008
La Jolla , CA Covario Inc., (formerly SEMDirector, Inc.), leader in interactive marketing analytics, today announced in conjunction with its annual event, INFLECTIONPoint, to be held January 24-25 in La Jolla, Calif., that the company has enhanced its Paid Search Insight™ technology for use in managing interactive channel programs. The expansion of Covario’s Paid Search Insight technology makes this offering the industry’s first solution that allows advertisers to manage and track the performance of the financing they provide to their downstream distribution partners. The solution is delivered as part of the Marketing Action Platform™, Covario’s platform for tracking performance of all forms of interactive media.
Research shows that spending on interactive media, particularly search and display advertising, has been growing at 22 percent per year for the past five years and now constitutes approximately 20 percent of all advertising spending in the United States at $10 billion. Of this, Covario estimates that approximately $1 billion to $1.2 billion is spent on reimbursement programs for channel partners. These programs, which incent a partner to place an advertisement with an advertiser’s product as part of the online offer, are becoming increasingly popular, particularly with component manufacturers, financial services companies and consumer electronics companies. In 2006 and 2007, Covario’s own clients have been increasing spending on channel partner programs by more than 50 percent.
One example is Tektronix, the leader in test, measurement and monitoring equipment. “Tektronix began its channel SEM program last year and the results have been very strong,” said Tomas Berghall, director of marketing at Tektronix. “Our direct measurable ROI on our paid search channel program has been over 150 percent since the program inception. We estimate that there is additional value from offline sales as well, and these are not included in the direct return.”
With the increasing popularity of channel programs in various vertical industries, Covario has expanded the capabilities of its Paid Search Insight solution to help organizations track this spending in order to measure program success. The technology will also allow advertisers to audit channel partners to ensure that the qualifications for reimbursement are met. The system is currently enabled to measure performance for direct paid search programs and will be further extended in scope to include display advertising programs later in 2008.
“Given the rise in spending on channel programs, we believe that monitoring the effectiveness of the channel will be key to organizations that have aspects of their distribution networks that are non-direct to consumers,” said Dema Zlotin, founder and vice president of strategic services at Covario. “In these situations, interactive channel programs provide a highly measurable way to ensure that those partners who do have a direct connection with end consumers are presenting the advertisers’ goods and services rather than those of competitors.”
Covario’s Paid Search Insight is part of the Covario Marketing Action Platform™, which provides marketing executives, managers and agencies with a consolidated view of search marketing activities across the distributed enterprise. Covario Marketing Action Platform automates the gathering of search engine, Web analytics and other sales and marketing data to provide a consistent business view of information that includes budget and purchase order allocations, customer engagement and return on ad spend (ROAS). With Covario Marketing Action Platform, online marketing managers can easily monitor and assess the performance of the most complex enterprise search marketing ecosystem, as well as have real-time access to the information necessary to make informed business decisions.
Covario has also published a white paper titled “Changing the Channel,” which discusses the process, metrics and impact of establishing interactive channel programs for large advertisers. The white paper is available upon request by contacting Covario.
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About Covario, Inc.
Covario, Inc., formerly known as SEMDirector, is the leader in interactive marketing analytics (IMA) software. The Covario portfolio provides global organizations with robust interactive and search marketing analytics solutions for display advertising, paid search advertising and organic search engine optimization across the enterprise and throughout the channel. Covario enables complex and distributed organizations to control brand integrity, ensure budget transparency and deliver quantifiable results across business units, distribution channels and languages.
Headquartered in San Diego, Covario’s growing customer list include some of the world’s best known brands in high tech manufacturing, financial services, electronics, media & publishing and consumer packaged goods, such as Intel, Procter & Gamble, Hewlett-Packard, Lenovo and AIG / AIU among others.
For more information on the Covario call 858. 397.1500