Google has announced that it will now be accepting 3^rd party ad serving tags for its placement targeting network in the US and has plans to roll this out in the UK in the near future.  This is a big step for them and no doubt is linked to the double click acquisition in some way.  The Google Image ads network has long been a no go area for media planners due in no small part to the fact they didn’t accept 3^rd party tags.  This announcement could mean a big growth spurt for the network as it should attract more advertisers which in turn should attract more publishers and also publishers of a higher quality.  I would argue that Google needs to clean up their network a little in order to improve quality but you cant dispute the fact they have a large number of sites on board in a large number of verticals which could be tempting for the niche advertisers trying to build an effective media plan.  There’s no doubt the ability to select individual sites, the flexible pricing and now the acceptance of 3^rd party tags makes Google a viable option for future media plans and one good media planners should investigate.

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!):

Microsoft have announced today that they will be launching a cash back system for purchases made using its Live search engine.  Utilising partnerships with ebay, paypal and jellyfish they will offer remuneration to users who find a product using live search and then make a purchase.  This is an amazing step from Microsoft into a market traditionally held by the affiliate world and heralded by the networks as the big growth area for affiliate marketing.  My own experiences of cash back sites are limited due to the way it opens the advertiser up for fraudulent enquiries/sales by incentivising the individual.  that doesn’t mean to say it cant work in the right situation and the entrance of Microsoft into this world not only says they have identified it as a growth area but also could have major implications for the cashback industry as a whole.  On the one hand it could bring the service to the mass market and mean the user base for such size grows exponentially over the next year or so.  On the other Microsoft may decide they want to dominate this industry and use it as a USP for Live search and decide to crush the independent sites in the way only they can.  Id certainly be getting a bit twitchy if I was a cashback publisher at the moment.  full article below

May 20, 2008

Microsoft to Launch “Live Search Cash Back” Tomorrow

The major Microsoft Live Search announcement scheduled for tomorrow will be the official launch of a new product: Microsoft Live Search Cash Back.

The program in partnership with eBay and its PayPal unit will offer cash back to consumers who search on Microsoft Live and make a purchase. The announcement will be made in conjunction with a taped message from eBay CEO John Donahoe. The technology is based on the acquisition of Jellyfish by Microsoft in September, 2007.

The announcement is expected to be made by Satya Nadella, SVP Search, portal & Advertising Platform Group, Microsoft, prior to Bill Gates’ presentation on “Connecting the Future.” The goal is to differentiate Microsoft’s vertical search experience for users while leveraging improvements in the core search algorithm.

Microsoft believes the Live Search Cash Back program will align the interests of consumers and the search engine, putting Microsoft “on the same side as the consumer.”

The job of Live Search will be to match the most relevant products with the most relevant consumers.

Microsoft will likely offer advertisers a CPA (Cost-Per-Acquisition) model rather than a traditional search engine Cost-Per-Click (CPC) auction.

Tony Hsieh, CEO of Zappos, said in a taped interview that the program would help overcome the barriers of first-time buyers of shoes online.

A Barnes & Noble executive stated that clickthrough rates and purchases had increased through the use of the Jellyfish pilot program.

The following message is posted on the Jellyfish.com Web site:

“As part of our pledge to save you money on the products you buy, our Cash Back rewards service is currently offline to perform necessary service upgrades and enhancements. Jellyfish Account holders will receive an e-mail notification when our Cash Back service is up and running again. Thanks for your patience.Using Jellyfish, consumers could compare prices of products from a number of online stores. Retailers paid Jellyfish fees to feature products. A portion of that fee was refunded to consumers who bought through the Jellyfish site.

Jellyfish also offered “Smack Auctions.” During each Smack show, Jellyfish would auction off new products in a unique price dropping format. Every second that ticks off the clock, Jellyfish would drop the price of the product, until the deal sold out.

Jellyfish founder Brian Wiegand is agroup manager at Microsoft. Last year, ye stated, Microsoft is “investing heavily in shopping and e-commerce.”

Microsoft closed the deal on Sept. 27, 2007 but didn’t announce it until Oct. 2, 2007.

This isn’t the first foray of Microsoft into the world of search engine incentives.

Microsoft Live Club is an ongoing experiment with incentivizing searchers but never on the Live Search Cash Back scale. For example, Microsoft Live Search Club lets users play games. A completed gives earns tickets toward prizes, such as Zune accessories, song downloads and ringtones.

Microsoft’s official statement on the announcement:

On Wednesday, we will be announcing a major new initiative that our search teams have been driving. We are getting better and better with our core algorithmic search, and at the same time, we are investing to differentiate in vertical experiences and to disrupt the current model. You’ll hear more about our plans Wednesday.

Strongbow are launching a mobile marketing campaign involving promoting a shortcode for users to text in to in order to receive a promotional text entitling them to a free pint in their local.  The offer will be promoting “Bowtime” which will run from 5pm-7pm on Tuesdays for a four week period.  This is imaginative use of mobile and I applaud strongbow for this.  Too many companies discount mobile as not fitting their industry or product but in coming up with this plan Strongbow have found a way of overcoming this.  They are obviously also attempting to try and generate a social/viral element by coming up with Bowtime in the hope people adopt this moving forward.  Also the chances of one pint becoming two, three, four are pretty high (I know from experience!) so they will still make their money on the resulting session.  The Strongbow statement claimed they were “seeking to engage with Strongbow customers in a relevant and long term way”.  I doubt this is the actual aim, I am guessing it is in response to the boom in the last two years of other cider brands (magners and bulmers in particular) as a way of reclaiming some ground.  I can also imagine the people texting in the shortcode will then be the target of further offers to keep promoting Bowtime and continue its impact beyond the four week period.  Ill certainly be tempted by a swift pint if I can get hold of the shortcode but am a little unconvinced Bowtime will become  a regular in my weekly calendar.  Full article here

So after all the hoopla about Google removing the trademark protection from its Adwords system (of which I only got chance to write about once as I was too busy doing something about it at work!) what was the outcome?  The removal happened on Monday (bank holiday, coincidence? I think not) while most of us were enjoying the good weather or a badly played round of golf in my case.  You can be damn sure there were no affiliates out on the golf course as they were all in-doors getting on as many brand terms as possible to make the most of the changes.

The net affect from what I have seen is the obvious rise in brand ownerships CPCs (about 30-60p increase on average) which is a big deal if you are somebody who relies no their brand sales to bring down the overall cost of the medium.   Affiliates and clued up competitors are having a field day at the moment with not many people following Tesco’s moral stance of not bidding on competitors terms.  I personally think it will all begin to die down as people realise the inflated CPCs they are going to have to pay to bid on competitors terms due to their lack of quality score will see a lot of them decide it is not worth the bother.  But many companies are going to have to review their affiliate strategy and make sure they have clear guidelines on what is allowed and what isn’t otherwise they will end up paying out a small fortune to affiliates who are doing nothing more than brand bidding.

Is microsoft about to revive the rumours and constant wondering about Facebook buyouts?  After every billionaire tycoon and his dog were linked with buying the social media phenomenon it has all been quiet for a while.  Now apparently it has come out that Microsoft has put the feelers out about a purchase of the social network.  Full article from search engine watch below:

About Face(book): Microsoft Feels Out Social Network Acquisition

Though Bill Gates was out there telling people Microsoft is not interested in making non-Yahoo acquisitions right now (at least in the search/social world), word comes that Microsoft bankers have sent “feelers” to Facebook about a full acquisition.

Here’s why this is a solid move:

1. Microsoft already owns 1.6% stake in Facebook, worth $240 million
2. Microsoft formed a data portability partnership with Facebook and 4 other networks
3. At least two Google execs have jumped ship to Facebook in recent months

While Facebook has yet to “overtake” MySpace in the social media market, it is a viable competitor. And I’m sure Ballmer would love for Microsoft to own a social network that even Apple has used as a marketing ploy as of late. Recent commercials for the iPhone entice potential customers through the ability to access Facebook on the popular mobile device.

Additionally, internet users are turning to their social networks during their search process. Consumers want answers and reviews and social networks help them get opinions from trusted sources.

The Facebook move would likely be seen by many as a better fit than Yahoo. But expect just as many to see it as a negotiating ploy in their bid for Yahoo. Though Microsoft has officially withdrawn its bid for Yahoo, many analysts expect Ballmer and the team to return to the table for another stab at a grab for the search engine.

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?

So Google have finally done it.  Sacrificed their morals on trademark protection in the name of more revenue by opening up all brand terms, whether registered trademarks or not, to anybody who chooses to bid on them.  This has been their system in the US and Canada for a while now and their arguement is that it provides a better user experience by offering the searcher companies which provide the same product or service as the one whose trademark they have searched for.  The changes will come into play on May 5th and from this point any advertiser will be free to bid for any brand terms they choose.  Fittingly this is a bank holiday in the UK and so the mayhem which will undoubtedly unfold will do so when the majority of industry representatives are away from work!  If you remember what happened when Google made changes to their minimum bid system (and it all went t*ts up!) it makes you wonder whether this date has been set intentionally by the big G.

So cue brands bidding on other brands, hiking the prices out of spite and affiliates of a field day.  But will this be the case?  No doubt initially companies will begin to bid on their competitors terms thus raising the price the brand owner has to pay.  But how will the quality score deal with this? Well you would like to think the competition will have to pay hefty minimum CPCs to even list in the first place given that their websites will have no relevancy at all to the keyword.  But will the big boys care about this?  They will probably be more concerned with stealing their competitors traffic and be willing to pay the price. 

Theoretically they wont be able to include the trademarked term in their creative but that doesn’t account for DKI which, no matter what Google suggest, isn’t going to change any time soon to combat this.  Therefore a clever search engine marketeer will get round this quite easily.

What do I think will happen?  Brand CPC’s increase, affiliates have a field day, the overall cost of PPC increases, and then when it all dies down it is back to business as usual and people forget the day brand protection was in place.  The trick is for companies to have a plan of action for May 5th, to know how they are going to deal with their affiliates, to develop and stance on competitors terms and closely monitor the first couple of weeks after this change comes into place.  Then to reassess and get on with the business of generating leads from paid search, after all we are all at the mercy of Google anyway, so why bother trying to fight it!

In a recent report into “Online Solutions” aimed at imparting advice on how to develop an effective web presence American Express have advised companies not to “waste money” on search engin optimisation specialists.  Apparently suggetsing that this is a sure fire way to get your site banned from the listings.  This is a very strong statement and one which Im sure please their incumbent SEO agency, Greenlight!  Imagine being the agency for a company who makes a statement like that! Cant fill you with much confidence for your next contract renewal.  I wonder whether the phrase “expensive” and the warning about being penalised refer directly to Greenlight’s work or whether this is jus a coincidence!?!

The full article is here and I have copied the offending paragraph below:

—  optimize your search engines

Search engines, like Yahoo! and Google, are usually the first place people will look for you. Make it easier for them to find you. Yahoo! and Google offer tools to let them know the site map structure of your Web site. Also, using clean U.R.L.s such as yourdomain.com/store/widgets instead of yourdomain.com/store.php?id=42&categoryID=widgets will increase your chances of getting indexed in a search engine. Finally, don’t waste money on so-called Search Engine Optimization (S.E.O.) specialists. Search engines are very quick to penalize sites that try to trick their filtering techniques, and once your site has been put on Google’s blacklist, it will take forever to get off.