The Digital Lookout

Google has entered into the festive spirit today by including images and icons on christmas based search results.  A search on Google today for the keyword christmas presents, christmas trees or christmas gift ideas brought back the usual search results but with a festive icon running down the page to the left of the PPC listings.  I’ve spotted listings using candy canes and holly, have you seen any I havent found?  Im guessing there are more out there if you have the time to spend searching on Christmas keywords.

Interflora this week launched legal action against Marks & Spencer and Flowers Direct in a case which could set a precedent in pay per click marketing.  They are claiming both companies are infringing their trademark by appearing in the sponsored results for searches on “interflora” and various mispellings.  This, of course, does not break any of Google’s brand bidding guidelines since they were changed earlier this year as they now only prevent advertisers using a trademark in their ad text.  But many large companies still believe that bidders are infringing on their trademark and the brand they have worked hard to build.

Up until now their only option has been to send the obligatory cease and desist letter and hope it scares people away.  But this case could set a serious precedent and if successful pave the way for numerous other cases, and who knows, perhaps a reversal of Google’s policy?

Google has launched a service which will challenge Skype’s dominance in the voice over IP communication project. The product comes in the form of Gmail chat which allows Gmail users to text chat with over internet connections but now also use voice chat and even see each other via video connections. (reported on bbc blogs)

This is a serious challenge to Skype and even more-so given the fact that Skype has struggled to monetise its service since its buyout by eBay.Google should have no such problems, even if it is only through Adsense text ads, it will be monetising this new solution. Also, if the only thing that this new Google initiative does, is to encourage more people to use Gmail, then Google also wins. As it is able to monetise these users through Adsense and CPM advertising.

Ok, so I’m a little behind in reporting this one but Ive been a little busy lately!

After entering the world of social media with the launch of lively.com only 4 months ago (google launches lively.com) Google has performed a huge u turn and pulled the plug on the virtual world which will be binned completely at the end of the year.

According to the google blog this is to allow it to focus it efforts on its core, “search, ads and apps business” but it is surely and indication that things weren’t going so well for lively.com and that the global credit crisis may even have reached as high as the big G, forcing them to cut unnecessary out goings and focus on core business units.

Now 4 months doesn’t seem like a fair amount of time to allow before deciding something is a no go, but lets face it, lively.com never appeared to have much going for it in the first place.  A virtual world which would sit in websites through applications and allow users to interact with the need for a central portal.  The format of the avatars was more sims than second life which would attract the youth audience, but how many teenagers have their own website? myspace and facebook page maybe but nothing which is stand alone.

Proof that even the strongest are susceptible to making mistakes and making knee jerk investments in the latest craze.  The difference?  Google was man enough to admit its error and is also rich enough to make 100 more in the hope that one of them is the next big thing!

Google has announced it is pausing its foray into the world of the financial comparison market to make some necessary amends to the programme.  The Google merchant programme was first spotted by the digital lookout in June of this year and caused a stir in the financial markets by replacing the top 3 sponsored listings with the merchant tool, annoying some of Google’s higher spending clients.

But it has now decided it needs to go back to the drawing board with the programme and has put it on hold while it makes some changes.  These changes are thought to be around the way in which applicant information is provided to advertisers and moving from a situation where Google held the information to one where it is sent directly to the service provider.  It is also believed there will be some slight tweeks to the commission structure and on what basis Google receives remuneration for leads.

So moneysupermarket, go compare and confused dont have anything to worry about for now.  But by the sounds of it Google will be back, and once they get their model worked out and decide to occupy top spot on key results consistently, there probably isnt much which can stop them.