The Digital Lookout

TradeDoubler Acquires The Search Works - The Uk’s Largest Search Engine Marketing Company - And Sister Company The Technology Works
• TradeDoubler has acquired all shares in The IMW Group, which includes The Search Works and those companies trading as The Technology Works• The newly combined entity will confirm TradeDoubler as one of the largest online marketing companies in Europe• The acquisition expands TradeDoubler’s performance-based product portfolio into the search market and provides opportunities for further geographic expansion
TradeDoubler AB (publ) today announced its acquisition on July 25th of all the issued shares in Interactive Marketing Works Ltd and its subsidiaries (‘The IMW Group’). The purchase price amounts to £56 million.
The IMW Group consists of two trading entities, ‘The Search Works’, a well established search engine marketing agency and ‘The Technology Works’, a technology provider for search engine marketing, whose products include ‘BidBuddy®’ - a search management technology.
The IMW Group is a profitable and well managed company which has built up a significant client base, including such brand names as Asda, Comet, EasyJet, First Choice, Interflora and The Carphone Warehouse. The Group has a strong reputation within the industry for professionalism and driving return on investment for its clients. The Group was founded in 1999 and currently employs 108 staff. Turnover for the rolling twelve months preceding June 2007 amounted to £69 million and gross profit for the same period was £7.8 million. The acquisition complements and expands TradeDoubler’s existing performance-based product portfolio which includes affiliate marketing, online advertising campaigns, pay-per-call and an online tracking and ad-serving technology. The newly combined offering has great synergies for both TradeDoubler’s and The IMW Group’s client bases. Search engine marketing and affiliate marketing are the largest direct response online marketing channels, with significant growth forecasted in both areas. The Search Works is active in the UK, while The Technology Works has additional presence in Europe and in Asia. TradeDoubler has an extensive presence throughout Europe which spans 18 countries.
“Product expansion and further internationalisation are key components in TradeDoubler’s growth strategy. The acquisition addresses both these areas by rolling out The Search Works and The Technology Works throughout Europe and by utilising The Technology Works’ Asian foothold to assess the roll out of TradeDoubler’s product offerings into Asian markets.” says William Cooper, CEO, TradeDoubler.
Nick Hynes, CEO, The IMW Group adds, “There is a natural affinity between TradeDoubler’s products and services and the search management technology that we offer. We also believe there is a strong cultural fit between our two organisations. Together we will be able to offer unprecedented online marketing services and tools to a range of clients across Europe and beyond.”
TradeDoubler also released its second quarter financial results today and reported strengthened gross profit margins and solid revenue and gross profit performance. Revenues for the period from April to June 2007 increased by 27.9%, compared to the same period in 2006, to reach SEK 512.6 million (approx €56m) and gross profit was up 25.4% to SEK 143 million (approx €15.5)
About TradeDoublerTradeDoubler is a Pan-European digital marketing company offering a range of performance-based marketing solutions. TradeDoubler’s products and services provide companies with the tools and expertise to drive results online whether they are looking to generate sales or drive brand awareness. Headquartered in Sweden, the company boasts a unique European reach with local offices in 16 countries across Europe and a presence in a further two countries. With a breadth of expertise across multiple industry sectors and a network of more than 118,000 website publishers TradeDoubler helps deliver online results for over 1,200 advertisers across Europe including a mix of local and international companies such as Apple Store, Dell, Telia Sonera, eBay and Kelkoo.

As the evolution of the search engine results page (SERP) pick up speed advertisers need to begin asking the question, what does it all mean to me?

The advent of Google’s universal search and the inevitable following suit of the other search engines will signify a new dawn in search engine marketing. I have listed below a few things which I think will be impacted and that must be considered when optimising for the future of search:

PPC: Logic suggests that with the introduction of more information onto the SERP that the number of paid links will be reduced. But then they are the main income source of the page, so will they? I think the likely hood is that the number will be reduced to 6-8 listings per page (as with the new ask.com pages), enough to free up some inventory but not significantly reduce earnings. In fact, this sort of reduction could drive up the price of first page exposure as everyone clambers for prime position so there may be no reduction in revenues at all. This could mean advertisers see a drop off in traffic as the page the are appearing on begins to drop, and a rise in costs as they fight to achieve exposure.

Dependant on the positioning of the paid listings in the page there could also be changes in click through rate. If you are adding in additional elements into the does this mean the clicks are diluted between them? I would suggest this is down how the information is arranged and the prominence each is given.

SEO: Again there could be a drop in the number of natural listings which appear in the SERP as additional inventory is introduced. This makes the importance of front page exposure even more valuable and harder to come by!

There may also be a reduction in the text which is displayed for each result in order to fit in more listings. If this is the case it would become extremely important to ensure that title tags are not only targeted to the keyword but are enticing to the user.

Additional Products: With the addition of “other” results into the SERP it will become increasingly important to take a holistic approach and incorporate all of them into an effective search campaign. Image search, maps, product feeds, book listings, will all become important sources of traffic as their prominence and exposure increases.

There is a big win to be had for the advertiser which embraces the changing face of search and optimises for all elements of the page. Rather than a threat to each individual element this should be seen as an opportunity for front page exposure on numerous fronts. The companies/advertisers which adapt with the SERP will prosper, those that don’t will be left wondering where all the traffic went!

So what is the driving force behind the adoption of mobile internet usage? Accessible website? Faster mobile download? More functional handsets? Nope…its toilet breaks and office rules!

According to a study by cellular news a large number of Britains are using their mobiles in the office toilets to access the internet in a bid to bypass company rules on internet usage. The study goes on to say that more than 25% of the UK’s workforce is deprived of web access in some way and are turning to mobile handsets to get past the legislation.

Maybe this could be the catalyst for the mobile internet revolution!!!

It has become more and more apparent recently that google has become over reliant on inbound links for determining its natural search engine listings. Analysing the websites which appear in the top positions for some of the most competitive keywords around (notably car insurance) will see that the one thing they have in common is an abundance of inbound links.

Through working with a companies trying to break into this elite it has pretty much become a case of, if you cant beat them join them. After trying every which way to do it through effective on page work it has become obvious this isnt enough. Without spending a small fortune on inbound links it just isnt going to be achieved.

Surely this cannot be the best way for a search engine to provide the most relevant results for a user query? Obviously within this the sites will be ordered by the traditional on page factors, but by placing so much emphasis on the links google is creating tiers within the search results:

Tier 1: those with a substantial link building programme (and large budgets)
Tier 2: those with less budget but well optimised sites
Tier 3: the remainder

Without a change in strategy or finances a company will find it extremely difficult, if not impossible to break into the top tier.