The Digital Lookout

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.

Google has launched via its webmaster central blog a best practice guide for SEO foundations.  This is an interesting move by Google and contradictory to its usual smoke and mirrors approach to giving away SEO tips and secrets.

It is a pretty basic guide though, listing basic website structure and meta implementation which should be the bread and butter of anyone claiming to know anything about search engine optimisation.  It will however be a useful tool for website and company owners who do not want or do not need expert SEO advice but just a reference point to ensure hey are doing the basics right for achieving decent listings.

It isn’t anything for SEO professionals to be worried about as it doesn’t give away any trade secrets or cover of specifics of “what happens if?” “what do I do when?” and so they wont be putting anyone out of business.  In fact it should make their lives easier, as if all websites arrived at your door having adhered to these Google tips, it would be a much easier process to get them ranking well, quickly, as there wouldn’t be the need for the site overall before the real work can begin.

This was first announced at the Google Above and Beyond Summit in Dublin last month but it appears it has reached the UK, at least in Beta format. (searchengineland article)

The plus box on PPC listings is one of Google’s latest developments in Universal Search and aims to provide more useful PPC listings and (much like the search within a search results) allow a user to select the most appropriate page or product within an advertisers site before leaving the Google SERP.

The plus box example given by Search Engine Land is the inclusion of product listings on the expansion of the plus box along with images, prices and descriptions.  This is one of the main uses for the plus box Google is looking to introduce and is linked to a Google Base account for the individual product information.

The other use for this technology that Google indicated was the ability to show branch locations on brand terms (and location specific keywords) so that a user could see and possibly click through to the appropriate web page or even website for their nearest branch.  This again is linked to Google Base and driven by the same technology as Google Maps.

Google is starting to join the dots with their different channels with integrations such as this and it is becoming more and more important for advertisers to consider the whole Google suit as part of their strategy.  Even if they aren’t going to get much significant volume directly from Google Product Search or Google Maps, it will have an overall benefit on both their PPC and SEO campaigns as Google introduces more and more initiatives such as this.

From Jan 1st 2009 the current Google Best Practice Funding programme will be no more.  The programme aimed at rewarding agencies who show growth of both clients and revenues by rewarding a % rebate on all spend with Google is being scrapped.  This move has been coming for a few years with Google gradually changing the programme and its conditions to slowly reduce the amount returned to agencies.  Originally set at the market rate of 15% for agency purchases Google has tweeked and changed their model to bring it down to a level where the bigger agencies are currently on receiving 6-8% commission on their sizeable Google budgets through the current Best Practice Funding Scheme.

This obviously as cause agencies to rethink their current commercial agreements with clients and could see some major shake-ups in the search marketing agency world as existing contracts become unmanageable without the commission in place.

What has become clear in the last couple of weeks however is what Google now plans to do with agency commission, they are going to use it to grow their non-search products.  It has been clear to see recently for those who deal with Google on a regular basis, that Google is desperate to expand their product mix outside of paid search.  They have launched media planning tools, display ad creation tools and have used every given opportunity to push the Google Placement Network.  Similarly with Youtube and their video advertising options, there has been national roadshows to agencies broadcasting the availability of their video advertising options.

And now this week Google has announced that they will be introducing agency commissions on all YouTube advertising (nma article here) and it is thought that the rebate amount is going to be back up to the 15% agencies enjoy on other media channels.  There are also rumours in the industry that a commission is set to be introduced on advertising across the Google Placement Network, although only for the largest players.

So it appears Google no longer feels it needs to compete in pay per click advertising due to its dominance, and that it is better placed rewarding advertisers in the areas it wishes to grow in.  You cant really fault them on that logic.  The removal of Best Practice Funding is unlikely to see agencies pulling spend from their Google Adwords campaigns, as it remains the best performing search engine around.  But by offering an incentive to broaden the products utilised they can begin to make headway in other areas.

Google announced yesterday that it was pulling out of the agreement with Yahoo which would have allowed them to display Google Adwords listings on Yahoo search results in the US.  The announcement comes in the face of a potentially lengthy and costly legal battles with competition regulators which Google has decided would “distract the from their core mission”.

In Yahoo’s response via email to it partners they reassured PPC advertisers that, whilst they were disappointed by the announcement, it would not prevent them becoming an “ever-stronger player in online advertising”.  and reaffirm their strength in certain sectors by quoted their positioning across selected news verticals.  A clear attempt to say “don’t give up on us yet!”

In a further twist, Yahoo! CEO Jerry Yang has come out and reverted on his original defiance on a sell out to Microsoft by claiming that he was open minded about a potential deal with Microsoft having been bitterly opposed to such a deal when originally proposed.  Its funny how he has changed his mind immediately prior to the Google announcement!

So its back to square one in the search engine battle for supremacy with no deals on the table and everyone working independently.  But for how long?  Yang’s announcement is bound to start the Microsoft-yahoo rumour mill off again and it is probably more likely to go ahead after yesterday but who knows?  I’m sure there will be more twists in the tail before the saga ends.