The finance comparison market has been a very lucrative and successful one over the past 5 years and it seems that Google has finally decided that it wants a piece of the pie! The screenshot below is taken from a Google UK search for secured loan (interestingly it only worked in IE and not in Firefox) and shows the Google Merchant Search function appearing above all PPC listings with drop down functionality allowing the user to select their desired loan amount before they even leave the SERP. Once an option is selected the user is taken to the Google Merchant page with their options shown based on the original selection, much like with all the other comparison sites in the market.

At the moment it appears this is just in Beta on the secured loan keyword but surely if successful this will be rolled out onto all other financial products. I couldn’t see where Google was getting these results from, and so I am not even sure if the providers know they are being compared (although I assume they are aware) and there is not indication of how a company would get its products listed, although this could just be a closed beta for now.

This could have massive implications for the comparison market, above and beyond the fact that there is another competitor in the market. In the first instance they have knocked moneysupermarket off the top PPC listing which will impact their volume, I am assuming they are not paying themselves a premium CPC for this position! They are also allowing themselves much more prominence on the page than a standard listing. 49 characters for a title and drop down functionality make it stand out on the page. Users could also see this as an easier option than clicking through a link and going through the whole process on a separate engine.

On top of this, if the beta is successful, what is to stop them adding in a variable to quality score which penalises other comparison sites? In one fell swoop generating themselves both more revenue from the sites willing to pay more and reducing the prominence of these sites and so driving more volume through their own tool. I may be a cynic but I can see it happening. Moneysupermarket spend a lot of money with Google but if they see a bigger opportunity in doing it themselves then they will surely pursue this avenue instead.

Is this the end of independent comparison sites? No, I doubt it, but if/when the beta is expanded it could be a big dent in their revenues and they will have to think of other ways to differentiate themselves. Some insurers (direct line to name one) are already boycotting the comparison sites and if Google is to offer this service for free, which they may well do in the name of stickiness and keeping people within the Google realm, more could follow suit.

It seems like Yahoo! may have finally given up trying to beat Google with the announcement that they are running a two week trial displaying Google AdSense listings alongside their search results in the US (more detail).  The initial trial will include the results displaying on no more than 3% of search queries submitted and will only be seen by Yahoo! US users.  Yahoo! claim the move is is part of an “exploration of strategic alternatives to maximise stockholder value”, i.e. make them more money.  Microsoft have already expressed their own concerns that should a future deal be struck this would take Google past the 90% market share mark and raise further competition concerns.

It concerns me what a future deal could mean for the search market as the it effectively means a consolidation of the market as opposed to the fragmentation we had seen coming over the past 2 years.  This simplifies the process and doesn’t necessarily bode too well for search marketing agencies.  From Yahoo’s perspective it may come down to purely monetary figures.  If they have decided that they are not going to get very far with challenging Google in the paid search market then displaying AdSense results would allow them to significantly reduce their staffing levels and technology costs.  Although it wont be nice for those people that end up getting the boot, the boardroom wont be concerned if the figures stack up.

It does make you wonder what sort of deal has been brokered for the trial and the possibilities beyond though.  A typical AdSense partner might be earning 40% of the click revenue generated but Yahoo! aren’t you standard partner! Could Google be willing to let Yahoo! keep all of the revenue for the sake of market share?

I spotted something on Google today which I hadn’t seen before and is a new development in universal search.  On a search for “times” I was presented with the standard search results you get for a brand term but then in addition to this there was a search box contained with the results! On entering a search phrase into this box I was presented with the site search results but still with the Google SERP.  This functionality is well known and nothing new but the inclusion of the search box in the results is not something I have seen before. 

It is obviously just another element of Universal Search in action but is alos a good tool for Google to make their results as accurate as possible and keep people within their pages.  By allowing them to search within Google for keywords contained within a site you are not only enhancing the user experience but promoting loyalty and boosting query numbers at the same time, win all round.  On top of this they are also able to produce additional Adwords results on the secondary search and potentially boosting revenues as well.

 

I have just come across the Yahoo! Buzzapplication which is currently in beta testing.  From what I can see this is very much like Digg and Sphinn in that users provide articles of interest which are then voted on by the users to push them up the listings. 

Stories are given a “buzz score” which is ”derived from search term popularity, the number of times a story is emailed from Buzz, and the number of votes a story receives.”  Which could add a slight element of mystery if it is more than simply a case of adding the sum of all these parts together.  If it is going to work much like the quality score system in PPC then it may change the game a little and avoid all the spamming which takes place in Digg.  There will apparently be a manual editorial team in place to prevent spamming from taking place but how many and how effective they will be remains to be seen.

The other major twist in the tale is the statement from the site “stories with the highest Buzz Scores may be published on the Yahoo! home page.”  this would make the reach of top performing articles massive and the potential of this new application greater than that of Digg and Sphinn as it goes beyond the user base of the programme itself.  Apparently the same editorial team which will monitor the spam will also be responsible for deciding which stories are worthy of the Yahoo homepage exposure.  It will be interested to see what prominence these articles are given as they are free content and so Yahoo! would potentially be losing out on revenue if they replaced any of the paid placements.

It will be interesting to see how this progresses and whether the exposure on the Yahoo! homepage can make it a bigger property than the more established players in social bookmarking.

Yahoo! are taking Universal Search mobile through their beta application Yahoo! One Search.  The mobile search application which must be downloaded to a compatible handset “practically reads your mind!” according to the pages on the Yahoo! mobile site.  Providing results from all Yahoo! properties including, answers, Yahoo Finance, Flickr along with Wikipedia and various news sources the application brings Universal Search to your mobile for the first time.  The categories are grouped and presented in a manageable format to make them easy to use.  I cant help but think that maybe they should concentrate on getting Universal Search right on the mainstream Internet before attempting it with mobile but I suppose maybe the simpler platform makes it easier to pull off and also the less sophisticated search terms being used means that the technology deciding what should be displayed also needs to be less intelligent.  in its present form with the need for download its usage will be limited, but I suppose it is still in beta anyway.  The main take up will come as Yahoo! starts to do deals with the networks to provide handsets with the application already built in which I’m sure will be their plan once it is out of beta and they are confident of its stability.

Yahoo!’s board have unanimously voted to reject Microsoft’s astronomical bid of $44.6bn (£22.4bn) claiming the offer significantly underalued the company! Rich considering the offer was 61% up on their closing share price from the previous day.  Yahoo!’s explanation is that the bid undervalued the strength of the Yahoo! brand, user base and recenty investment in advertising technology.  My take is that they arent too keen on becoming a Microsoft company and having a consolidated position in the market as they already have a larger share of the lucrative search marketplace and a comparitive stance in other areas of online as well.  I wonder whether this will open the door for a bid from Google as had been rumoured last week or whether Yahoo! would rather continue the fight on their own against the big G.  This probably wont be the last we hear about alliances and a consolidating market but Im not sure any future deals will be on the same scale.

NMA article here

Ive finally gotten round to having a little think about the big news story of the week, Microsoft tabling a bid of $44.6 Billion in cash and stock to buy its rival Yahoo.  There has been no official comment from Yahoo on the reports but I thought Id document my thoughts on the impace this could have.

The portal market

Yahoo and MSN are the two big players in the portal market, the one stop shop for all you web needs, search engine, web mail, news feed, weather reports, all in one place.  This is where Microsoft will gain a massive advantage and pretty much gain complete dominance.  Aside from the ISP sites, which gain their visitors through having a default homepage setting in the ISP setup process, Microsoft will have a dominance in this field comparable to Google’s in the search market (more of that in a minute!).  So what does this mean to MSN? Well instantly they will take on board the lions share of the portal advertising revenues around the world.  Yahoo has built an advertising model which is highly lucrative and brings in a huge amount of revenue each year, utilising the latest behavioural targeting technology to keep online advertising moving forward.  MSN obviously has its own advertising model and ideas on how the market is going to advance but they will automatically boost their ad revenues with the purchase.  It also sets them up well for the predicted rise in online ad spend over the next few years, from $40 billion to $80 billion if you believe the predictions, dominance in a market this size is a mouth watering prospect.

The search market

This is where it gets really interesting.  Microsft has struggled to gain a foothold in the search market since it launched its own PPC model in 2006 and I forecasted in a previous post (Microsoft sets its sights on 40% market share) that a purchase may be on the cards if they were to achieve their targets.  The purchase of Yahoo Search Marketing (YSM), if part of the deal, would possibly take their market share into the double figures in the paid search arena.  Their system is good at present, the quality of their traffic is good, its just the volume they have been missing.  YSM would help boost this and make them a legitimate number 2 in this arena and they undoubtedly have the fire power to make dents in Google’s dominance (see their response here).  It does raise the question, what does this mean to search agencies?  the market which was due to fragment with the launch of wikia search, AOL breaking out in the US, Ask hinting at the same, is now significantly consolidated if this deal does actually go through.  Does this make SEM simpler? Not really but it could be perceived that way, a post for another time I think.

How do they manage it?

This will be interesting, does Yahoo become Microsoft branded?  or is it just another property of the technology giant?  Does it become Microhoo? Yasoft? Mahoo? or does it become Yahoo - a Microsoft company? and more importantly for internet marketers do they keep the two infrastructures separate, the advertising interfaces, the search algorithms, the display advertising models.  This is what will be the key determinant of what this means to the industry and what it means to digital agencies.

Whether the deal goes through remains to be seen, when it goes through is another question yet to be answered. What is undeniable is that it is going to influence the online advertising market significantly, in what way, remains to be seen.

The adwords blog has announced the launch of a demographic bidding beta test and is offering the chance for advertisers in the UK and the US to sign up for the trial.  Reading into the release the targeting is only going to be available on the content network placement network and is dependent on the publisher site having the capability to provide the information on the users.  If the site has this information, more often than not through a sign in system, then it will be shared anonymously to Google and the appropriate ads.

From the detail in this article the benefits of this system over MSN’s own demographic targeting system is that the system will allow you to up weight your bids by a higher percentage (MSN’s limit is 150%) and that you will also be able to choose not to show your ads to certain audiences.  This is certainly an advance on MSN but the impact of it will be limited by the reliance on the publisher site and the fact that the targeting wont apply to the main Google search results, where it could have most benefit.  This is obviously due to the fact that you dont need to be signed in to Google to use it although they could have implemented it for those people who have a Google account and perform searches whilst signed in.  Maybe that will be in the next release, I suppose we’ll have to wait and see.

Search engine land reported today the release of some new functional by ask which allows a user to upload their own personal background image for the search engine.  The functionality to add a skin to the background has been available since last year but this was only for predetermined images and wasn’t customisable.  I like the idea of customising the results page and this is a much simpler solution than Google’s which involves xml information rather than a simple image upload.  It is also much more flexible and interesting than msn and yahoo’s offerings which only allow the selection of different colour palletes for the page.

This functionality is just another stage in the battle for search engine supremacy but also for loyalty within internet users through added value.  Yahoo had this a long time ago through positioning itself as an information portal and one stop shop for your internet needs (email, news, sport, search…) a similar position taken by MSN.  Then Google smashed this with its simplicity and accuracy of results.  But even the big G has recognised the need to give people more and through iGoogle struck a balance between information on the page and usability by allowing the user to choose which information feeds they received.  The issue at the bottom of all of this is keeping people using your page/engine, setting it as their homepage, and a base for all their online activities.  If they can use your site for everything they need online whey would they go elsewhere?  The longer a user in on your site, the more searches they do, the more ads they view, the more ads they click, the more money you make! Simple.  Expect a lot more releases like in this in the next 12 months as the battle continues.

It’ll take a lot more functionality for Yahoo, Ask or MSN to catch Google but I do know people who now use the Yahoo homepage as they prefer it to Google so there is some movement going on.   You can check out the Ask function on the US site here, it is not yet available in the UK.

I had my first look at the Wikia Search alpha today and I have to say the results are absolute pants!  To be fair to them the people at Wikia do say the results won’t be great at the moment as the basis of their engine is that of user reviews and not so much algorithmic search, hence results will improve rapidly over time as listings begin to get scored by users.  I have to admit that I like the idea of a user ranked search engine, after all, how many websites do you come across which have absolutely no relevance to your search phrase? (my blog ranks rather highly for “search pornsex” for example!) But not only that, a user can make more judgements on things like usability and site layout than a search engine spider which should further help the best websites rise to the top.  The process appears relatively simple, hover over a result and a five star scale will appear allowing you to score the result, this will then be used along with the algorithmic properties to determine a websites position.  This will be wholly reliant obviously on users picking up on and participating in this ranking process so I will be watching with a lot of interest how the results improve over the coming weeks.Aside from the standard results there is also going to be a section at the top of results reserved for “mini articles” on each subject.  According to Wikia “These will vary in purpose according to the circumstance, but the primary uses will be:

• Short definitions
• Disambiguations
• Photos
• See also “

Generated by the users these will obviously take the same form of the Wikipedia pages and will undoubtedly include some Wikipedia content for sections yet to be populated by the new system.  Wikia Search undoubtedly has the potential to become the most relevant search engine but the worry, as has been the problem with tagging sites such as digg in recent times, is that people begin to play the system, creating alias accounts to boost their own contents ratings and therefore rank, totally devaluing the whole platform.  If Wikia Search really does become the next number one contender to the big G then the temptation to find a “quick win” within its system will grow stronger in line with its visitor stats.  At present I believe Wikia plans to get around the duplicate account problem by basing its user on IP address but that doesn’t sound like to much of a robust system to me and I cant imaging it will be long before the spammers have an easy way of beating it.

I may have sounded negative in this post but I honestly hope Wikia Search succeeds, I hate the dominance Google has on the search market.  I also love the thought of users producing the search results rather than a piece of software.  On this initial offering I think there is a long way to go with the next big pretender.