I was reading Marketing’s fourth annual survey into the top loved and hated brands and noticed the fickle nature of the public in their views on brands, and undoubtedly linked, their advertising campaigns.  What struck me from the survey, more than the strange appearance of AOL at number 2 in the top 50 hated brands even though their UK profile doesn’t warrant such a high profile spot, was the number of brands named highly in both the most hated, and most loved lists.  In the main list you actually only have two brands appearing in the top 20 of both, these are The Sun and Nokia (via ngage in the most hated), but if you get down into the different tables for the individual markets it is much more apparent.  I suppose you could just argue that the more you drill down by market, the less brands their are and so the more chance of a brand appearing in both lists but if you take such a broad market as “fashion” you would imagine there are enough brands out there to limit duplication.  But yet in this particular category 3 brands appear in the top 5 for both hated and loved!  Topshop is number one hated and number 5 loved, Levi’s is number two loved and number 4 hated, and Next is number one loved and number 3 hated.  How can brands be perceived in such a different way?  Is it simply that such well known and high profile brands are more likely to stir an extreme emotion in users where as slightly lesser brands stay under the radar a little more?  Your guess is as good as mine.  I have listed some of the other occurences of this below, focussing on the digital areas of the survey (as that is the topic of the blog after all!):

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.

Exciting news in the world of search engine marketing, more thoughts and comments to come when I have the time!

Microsoft offers to buy Yahoo

By Franklin Paul and Tiffany Wu - Reuters

February 01 2008

NEW YORK (Reuters) - Microsoft Corp said on Friday it has offered to buy Yahoo Inc, the popular Web portal, for $44.6 billion in cash and stock, seeking to join forces against Google Inc in what would be the biggest Internet deal since the Time Warner-AOL merger.Microsoft offered to buy Yahoo for $31 per share, a 62 percent premium over Yahoo’s closing stock price on Nasdaq Thursday. Yahoo shares jumped to $30.75 in premarket trading.

Yahoo said the online advertising market is growing rapidly and expected to reach nearly $80 billion by 2010 from over $40 billion in 2007. Yahoo added it is “increasingly dominated by one player,” referring to Web search leader Google.

“We have great respect for Yahoo, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market,” Microsoft Chief Executive Steve Ballmer said in a statement.

Yahoo was not immediately available for comment.

The company has been losing market share to Google and warned earlier this week that it faced “headwinds” in 2008, forecasting revenue below Wall Street estimates.

On Thursday, Yahoo disclosed that nonexecutive Chairman Terry Semel was leaving the board, ending its formal ties with the former chief executive, who is credited with reviving the company and then losing touch.

Semel, replaced as CEO last June, had faced heavy criticism for failing to move faster to meet both rival Google’s challenge in Web search and advertising and, more recently, the rise of social networking sites such as MySpace and Facebook.

U.S. stock futures jumped on the Microsoft news, which offset a disappointing earnings report from Google late Thursday.

Paul Mendelsohn, chief investment strategist at Windham Financial Services, said a deal made sense.

“Yahoo is having a really tough time competing against Google. Whether it’s a good price, I can’t see anybody else who is going to outbid Microsoft,” Mendelsohn said.

Microsoft said it had identified four areas that would generate at least $1 billion in annual synergies for the combined entity.

Tim Smalls, head of U.S. stock trading at brokerage firm Execution LLC, was less enthusiastic about the benefits of a tie-up.

“Shocking! To me, the premium seems exorbitant, for what is a dwindling business. I personally don’t see how the synergies of Microsoft-Yahoo is going to take on Google,” Smalls said.

(Reporting by Franklin Paul and Tiffany Wu; Editing by Lisa Von Ahn/Jeffrey Benkoe)

Copyright 2008 Reuters

Although this is an interesting articale about the differences in the approach taken to PPC and SEO I feel that it is a little naive to treat the two as seperate entities. They have obvious similarities and by treating them as one channel (search) there is a lot that can be gained. Cross over of learnings is significant and by managing them closely together with a holistic approach brings the best out of each.

SEO Vs. PPC: The Heavyweight Battle Of Internet Marketing

SO, YOU’RE ASKING yourself the question online marketers are asking themselves today. Where should I spend most of my time, money, and efforts — SEO or PPC? The battle has begun.
The conflict begins with too many choices. It’s easy to feel lost when new forms of online advertising are constantly emerging. So, where do you start? You hear about social media networks, pay-per-call, blogs and innumerable others as they develop into bigger markets, but do any of these choices make sense? Here’s the reality - no matter how many other avenues pop up, the engines still maintain the largest market share of all searches online. It is there that you’d be wisest to invest your money.
Round 1 – Time. When considering which form of Internet marketing to choose, your biggest determinants should be time and efficiency. Depending on how time-sensitive your objective is, it is important to know that the quickest way to drive traffic is through PPC (pay-per-click). You build your campaign, and with the click of a button, you’re getting traffic. Changes are immediate, and you have control. SEO (search engine optimization) is quite the opposite, although certainly worth the effort. A couple of things to keep in mind — it is very important to be patient. Due to the dynamic nature of the engines, time projections are difficult to make. You make a change, and it often takes months to see results. Also, you need to keep in mind that optimizing your Web site is an ongoing effort. As the nature of search engine algorithms, your site might need “adjustments.” But the end result — the possibility of increasing your site’s natural rankings and getting a high volume of free traffic — is well worth the time spent
Round 2 – Money. You often hear people saying that “SEO is so expensive!” But is it really? Let’s compare it to PPC. Granted, SEO often requires a considerable upfront investment, but consider the payoff. An optimization professional recommends (and often makes) changes that are intended to increase a site’s natural rankings — which translates into free traffic. Although you can control your site’s rankings via PPC, you will always have to pay for them, which most often ends up being many times more expensive than the SEO investment. Anyone can start a PPC campaign, but the challenge is getting your site ranked in the first pages of the engines. Having the first spot or even the 5th or 6th in Google for your keywords is like having a huge billboard in the middle of Times Square. The traffic is intense and the exposure is priceless! We can say the same about a great ranking on a PPC campaign, but remember one thing — you will always have to pay for it. Free clicks in sponsored search? Never.
Round 3 – Effort We know SEO takes more time and effort than creating and maintaining a PPC campaign. Yet, it’s important to recognize that a considerable effort is required with both. Optimizing a Web site is like trying to climb to the top of a mountain. Once you start, you can’t stop until you reach the top. You work for hours at a time on optimization, with your goal in sight, and then rest while the engine crawlers find and assess your improvements. You see the results of those changes via movement of your site’s natural rankings, and then start up the mountain, again. The creation of a PPC campaign takes only a few steps — but to make it successful, consistent maintenance is required. Rather than investing hours of work at once with down time in between, PPC requires almost daily attention and maintenance. It may look simple from the outside, but there are so many small things can make a huge difference in the success of a campaign. This is the rivalry of the Internet marketing world and getting more and more intense. Who’s watching? We all are.
Each tactic, whether it is SEO or PPC, has its positives and negatives. Consider the following:
1 - Business Growth. SEO and PPC have opened the doors to small business and fueled fast- growing enterprises. A company can make a name for itself in no time if it pays enough per keyword to be in Google’s top ranked positions or has a better optimized Web site than its competitors. For e-commerce clients, this has been an incredible way to market and sell their products. Think about how much renting a locale can cost a business per month and how much traffic will actually go into your store. Now, think about the traffic that exists online, in which you can target either by city, state, region, or country, and how much more affordable it can be!
2 - Brand Awareness. When launching an Internet marketing campaign, you’re not only marketing your product or service but acting on a form of public relations. Many PR firms are reaching out to Internet marketing firms to help their client’s efforts. When deciding whether or not PPC is viable, consider both the cost per click, and the number of people who will see your ad (whether or not they clicked). It’s free exposure, and what’s better?
3 – Traffic. Traffic will make or break your online business. If you’re not generating traffic, you’re not generating sales. The engines can deliver the highest volume of traffic if positioned in the top rankings. You already know this! Now, the important factor is driving qualified traffic to your Web site. This all comes down to the SEO and PPC determinants, such as choosing the right keywords, ads and other elements that are driving the traffic you want to ensure your online efforts are successful. One major factor of failing campaigns is insufficient research. Research is crucial to creating a winning campaign to compete in a growing market.
It’s time to start considering which type of marketing will best suit the needs of your business. If you’re still debating whether it’s the right time to get serious about marketing online, consider that your competition is most likely making their presence felt there already.