Yahoo sent out an email last week to its partners announcing some changes to the way it will be mapping keywords from July 29th.  In the past Yahoo has mapped certain keywords to others within its paid search listings much in the same way as Google broad match works.  As a former pay per click campaign manager this often caused me head aches as their mapping, which was supposedly done to improve the quality of their search results, seemed to penalise the professionals willing to spend the time building high quality keyword lists.  Funnily enough, it also had the affect of reducing the keywords available in their market by mapping low cost keywords to higher cost ones, hence making them more money.  Strange that isn’t it.

The other issue with their system was that they just weren’t very good at accurately mapping keywords together.  One specific example I vividly remember is when they decided to map all the listings from the keyword “home loan” to the keyword “mortgage”On the face of it these may sound like pretty similar words, but in the finance market a home loan is another way of describing a loan secured against you existing property, not a mortgage to buy a property.  What this meant for advertisers (I was working on secured loans campaigns at the time) was that overnight, you started to receive a large amount of costly, irrelevant clicks and aso ended up displayed irrelevant ad text.  There was no warning with these changes and at the time went they were gong through this mapping process it was a case of keeping a very close eye on keyword level spending to understand when a change may have been made.

It seems that no Yahoo has seen the error of its ways and is unmapping an initial list of 772 keywords, although they havent disclosed how many this leaves still mapped.  This is good news for professional PPC managers as it makes the job more complex which brings more need for their services.  It is easy for an advertiser to manage a keyword list of maybe 100 keywords but if this keyword list becomes 1000 or even 10000, with targeted ad text needed for all, it becomes a lot harder. 

A fill list of the keywords to be unmapped can be found here

Slightly old news as it was announced 14 days ago but Ive been a little busy so am finally getting round to posting about it.

Yahoo! has purchased web analytics software solution Indextools for an undisclosed fee.  The tool which one commentator described as”one of the best kept secrets in the industry” has been bought as a direct response to Google Analytics, this is easily shown by the fact that the first thing Yahoo! have done, is make it free! (remind you of any other analytics package?).  Yahoo! has had its own tracking solution for a while but lets face it, it was pretty rubbish.  So this purchase and the immediate action of making it free of charge puts Yahoo! firmly in competition with Google in the combined search, analytics market it in my eyes, gives them an advantage.  I have used Indextools for a number of years and can honestly say it is 100x the package that Google analytics is.  This is a full on, analytics, campaign management, usability, all singing, all dancing tool, which when used correctly can do some pretty impressive things.  Realistically most people wont use all the best bits of Indextools but the savvy internet marketeer could actually get for free with Indextools, what would have cost them £500-£1000 a month in the past, bargain!

I am intrigued as to what Yahoo!’s plans are for Indextools as if they are to continue to offer it for free then are they going to remove some functionality to strip down the software functionality?  I hope not but it probably makes more business sense.  Maybe then offer the additional functionality at a cost, but does that go against what Yahoo! are trying to achieve?

In order to qualify for the package at no cost existing customers are required to sign a new Yahoo! agreement.  I haven’t seen this agreement yet but it will be an interesting read (if such documents can actually be interesting!) as one of the concerns around using Google analytics, and now Yahoo! owned Indextools is the data you are passing to the search engines about your campaigns.  Who owns this information and how can it be used is key in determining whether by selling out to Yahoo! Indextools is likely to lose all its clients.  It may seem a little big brotheresq but would you really want Yahoo! knowing the details of all your online activity?  not just search (and therefore Google) but also you display, affiliate and email campaigns?  because that is what Indextools is best at, compiling data into a logical dashboard enabling you to see all your data in one place.  If Yahoo! is then going to use this data to make competitive decisions then nobody is likely to want to use Indextools anymore.  I suppose we will just have to wait to see the contents of this agreement and its approach to data usage, but I just hope by buying one of the best, most usable tools on the market, Yahoo! hasn’t inadvertently killed it.

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?

It looks like Microsoft might be refusing to take no for an answer in their bid to buy out Yahoo! in a bid worth $40Bn.  After having their bid rejecting because the Yahoo! board believed it significantly undervalued their brand and investment in technology Microsoft are rumoured to be responding by attempting to ignite a proxy fight to take over the company.  Such a proxy fight would see Microsoft nominate a group of directors sympathetic to a deal for shareholders to vote on at Yahoo’s annual meeting.   According to Morningstar this is Microsoft using the carrot and the stick approach, just both at the same time! The carrot of the share price, 62% above trading price, and the stick which comes in the form of the threat of a proxy battle.  The drama continues and maybe Microsoft will get their way after all!

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.

Wow! Miva must have cut their own throats to get this deal!

Miva Beats Google, Yahoo to Land Conde Nast U.K. Account
30th March 2007

Online ad network Miva has won the pay-per-click account of Conde Nast Interactive U.K., besting Yahoo and incumbent Google, writes paidContent.
The agreement covers all 12 Conde Nast U.K. sites, including Vogue.com, GQ.com, Glamourmagazine.com, CNtraveller.co.uk, Vanityfair.co.uk and the newly launched, Stylefinder.com. The total volume of page impressions of these 12 sites exceeds 54 million per month.
Six Miva PPC ads will be displayed across every page of the 12 sites through ad units at the bottom of the page, according to Miva. The implementations will include advertisers’ logos, and the ads will be targeted using both the content of the page they appear on and the demographic of the site users. All implementations will be un-branded and designed to mirror the design style of the individual Conde Nast properties.
In addition to ads on Conde Nast’s U.K. websites, Miva’s ads will be embedded in 500,000 opt-in emails sent daily, weekly or every two weeks, depending on the newsletters’ publication schedule, to Conde Nast Interactive’s email subscribers.