New Search Marketing Player Applies Portfolio Theory

  |  June 18, 2004   |  Comments

Ex-Yahoo! exec Siminoff reemerges in the search world.

A new search marketing firm, Efficient Frontier, launched Friday with an innovative technology and approach. The company, headed by ex-Yahoo executive Ellen Siminoff, uses concepts borrowed from financial portfolio management to maximize keyword campaign results.

Though the company can't name its existing clients, it's working with three of the top five brands on the Internet and already has more than 2 million keywords under management. Siminoff, who was senior vice president of small business and entertainment at Yahoo before her departure in 2001, says the company is trying to solve one of the biggest problems in search marketing: how to be efficient at scale. That's why it's going after clients who are spending $40,000 to $50,000 a month on search.

"Search marketing is proving to be incredibly valuable for marketers who want to allocate more of their budgets to it," said Siminoff, who is president and CEO. "The channel is growing in complexity, and we want to help companies continue to realize the full potential of this media."

Efficient Frontier's technology treats a company's keyword set as a portfolio, predicts what the return on investment will be at different bid prices, and allocates the budget accordingly. The company says it will bid "as frequently as necessary to maximize portfolio performance."

"This changes very dynamically because the marketplace changes," said Siminoff. "Your return metrics change, also."

Executives describe it as an algorithm-based approach, distinguishing it from rules-based technologies such as that from aQuantive's Atlas Search. Efficient Frontier handles only the bid management part of search marketing and expects to partner with other agencies that will take care of creative and landing pages.

"I think the biggest competition is people who think they want to do it internally and don't know how complicated it is," Siminoff said. "It's really complicated. I think people don't realize that. Some of them have to fail before they realize how hard it is."

Efficient Frontier has been in research and development mode for about a year, picking up venture funding from Redpoint Ventures and Cambrian Ventures in December 2003.

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!

ABOUT THE AUTHOR

Pamela Parker

Pamela Parker is a former managing editor of ClickZ News, Features, and Experts. She's been covering interactive advertising and marketing since the boom days of 1999, chronicling the dot-com crash and the subsequent rise of the medium. Before working at ClickZ, Parker was associate editor at @NY, a pioneering Web site and e-mail newsletter covering New York new media start-ups. Parker received a master's degree in journalism, with a concentration in new media, from Columbia University's Graduate School of Journalism.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

Resources

Jobs

    • Digital Marketing Analyst
      Digital Marketing Analyst (GovLoop) - Washington D.C.Are you passionate about audience acquisition? Love effective copy and amazingly effective...
    • Product Specialist
      Product Specialist (Agora Inc. ) - BaltimoreDescription: The Product Specialist is hyper-focused on the customer experience and ensures that our...
    • Partnerships Senior Coordinator
      Partnerships Senior Coordinator (Zappos.com, Inc.) - Las VegasZappos IP, Inc. is looking for a Partnerships Senior Coordinator! Why join us? Our...