Search Befriends Social Networks
- Mark DiOrio
Search engines are quickly learning that the search function embedded in social networking sites is becoming increasingly popular. Last month Hitwise conducted a showing that MySpace edged out MSN Search in the amount of traffic sent to sites. While Google and Yahoo maintained the top two positions, this is a significant finding and reinforces to marketers the influence of these emerging social networks. Those who have been successful in search will be paying closer attention to these networks and their relationships with major search engines.
MySpace and Google have recently inked a making Google the sole provider for search on MySpace and many of the other Fox owned sites. This is a major move for Google who unbeknownst to many also owns the social networking site Orkut which is extremely popular in South America. The times have certainly changed as just a short while ago people were skeptical of the business model behind the social networking sites.
MySpace also has a tight grasp on the online video segment as it accounted for a significant portion (between 60 and 70%) of traffic to wildly popular video sharing site Youtube and now has its own video capabilities. As online video becomes more popular many companies are experimenting with messaging on Youtube and similar sites. Some applications include product demos, event coverage, TV spots, etc. Marketers will come to realize that consumers watching their message are originating at the social network sites.
Meanwhile, MSN is clearly taking huge strides to stay up with the other major engines and avoid being eclipsed by the social networks. MSN has recently launched re-branded , as well as a new social network called Windows Live Spaces. There has also been controversy over the new Vista operating system coming with a built in search bar that automatically sends users to MSN search. Google has expressed concern as to weather this is an unfair grab at search traffic and its precious advertising dollars. While this small box may not seem worth fighting over, Google estimates that somewhere between 30-50% of searches are initiated here.
It will be interesting to watch as other social networking sites pop up catering to different niches and new partnerships emerge. The competition in this sector is fierce and the stakes are extremely high.
Back to top
$1,000,000,000 from Fraud
- Scott Kaufmann
One of the power players on the NASDAQ stock exchange for the last two years has been a massive company whose stock has risen to over 4 times its 2004 valuation. This company had a total net income of over 1.5 billion on total revenue of over 6 billion last year, and is projected to be even higher this year. Rapid appreciation in stock price, tons of free cash, excellent earnings - sounds like a stockholders dream. What if I told you that an estimated 10 to 40 percent of this company's total revenue was a direct result of fraudulent activity? Chills down your spine?
This shareholder darling is known to you and I as Google. The overwhelming majority of in revenue comes from its Ad delivery platform. When an advertiser places an ad on the Google network, that ad is shown in response to a keyword search or on a targeted site on Google's massive partner site network. When a user clicks on one of these ads, the advertiser pays for the click, known as pay-per-click (PPC) advertising. That revenue is split between Google and the site that displays the ad. It's a phenomenal system that has literally revolutionized the world of online advertising (Google didn't invent it, just had the largest network to make it the most profitable) since it displays ads that are relevant to a user's interest at a particular moment. Pay-per-click search advertising is like opening a magazine looking for a picture of a Ferarri, and not only flipping directly to a page with a picture of the Ferarri on it, but on the sides of the page are ads for Ferarri magazines and Ferarri products. Perfect ad targeting. And to make it even more cost effective, an advertiser only pays when someone clicks on their ad. This is both brilliant and blindly exploitable. There are two ways this system is currently being utilized in a fraudulent manner, below I illustrate both:
Example 1: Let's say you are an advertiser with a five thousand dollar monthly budget. Your competitor has a ten thousand dollar monthly budget. You are both bidding on the same keyword "Italian sportscar". Your competitor can afford to pay $.50 per click, which you can only afford to pay $.25 per click. Google and Yahoo will give your competitor the top spot over your ad, because your competitor can pay more. Because of this, your ad is shown lower on the page and you receive less traffic from that ad. What can you do? Simple - you can click on your competitor's advertisement (or run software to do it for you), charging your competitor a fee every time you click on their ad. Suddenly their budget is depleted and your ad is now shown on top and you receive all of the clicks for half of the price your competitor paid.
Example 2: You are a website owner. You sign up with Google and place a block of ad's on your site to make a little extra revenue. When one of your site visitors clicks on one of those ads, the advertiser's account is charged and both Google and you get paid. How can you make more revenue? Just click on those ads yourself. Or create a program to do it for you. You win, Google wins, but the advertiser spends money on advertising that won't bring any new legitimate customers. In both cases, Google wins and the advertiser loses.
It's not just theory. Many advertisers have filed lawsuits against Google and Yahoo claiming due to this fraudulent activity. Industry estimates claim that 10% to 40% of Google's total revenue is likely derived from this type of fraud. Eric Schmidt, Google's CEO, alludes that this type of fraud and is a self-correcting system, as advertisers will only pay for profitable ads. Yet, at the same time, Google has acknowledged the problem enough to allocate resources to create a that will charge advertisers only when a transaction has taken place. While this would thwart the motive for fraudulent clicks, it could become a massive administrative nightmare for Google, who will suddenly find itself a partner with Karaoke Star wondering why Karaoke machine sales are down.
Either way, when more than a billion dollars of advertising revenue is fraudulently finding its way to Google's pocket, you can be certain there will be some unrest in advertising land. I suggest keeping a close eye on your campaigns and then just sitting back to watch the show. Between this and the Net Neutrality bill, there are challenging times ahead for Google and company.
Until next time...give your dog plenty of exercise, a healthy diet and plenty of water. If he's not as happy as you think he could be, maybe he would prefer a life of true freedom on .
Back to top
SEO Detergent
- Leslie Jackson
I've been reading through an emotional soap opera of tales of how the Google machine has wronged the world. It reminds me of some poignant words of SEO experts worldwide.
Ultimately, those being harmed by Google's algorithm changes, infrastructure changes etc... those chasing the algorithm are those who aren't pointed forward. Google isn't trying to prevent the individual from being successful; it is trying to make the search results relevant to the end user - by eliminating duplicate results, by showing sites rich with informative content and relevant information to the end searcher. Giving searchers a reason to come back and search again…
One can't always blame the search engines for the lack of understanding of basic search practices. I suggest evaluation of the following elements:
- Web design - is your site user friendly, search friendly, conversion friendly?
- Keyword phrase selection - the most important element is knowing HOW your targeted consumer searches for your product and implementing highly relevant and targeted keywords within your Web site titles, description and content where applicable. Business name doesn't count.
- Link popularity (not reciprocal) - if your site is useful, informative and provides value - other sites will want to link to you as a resource. Develop tools throughout your site that lead to the resource side vs. sales side. Up your PR efforts, post press and news releases, newsletters and tips, blogs... a variety of ways to add value and increase your links without purchasing or trading.
- Public Relations/Branding - see above - optimized press release links are GOLD.
- Keyword description - as with PPC make this sucker a well written relevant AD about your Web page...
The key is USEFUL RELEVANT INFORMATION. However, don't over optimize and sacrifice conversion - if you aren't getting people to buy anything from your site once they search... doesn't matter if you are #1 now, does it?
Finally - Natural Search is an imperative part of the online marketing mix. PPC is no longer a cost effective as it used to be and the average searcher won't rely on the "paid" ads for the most relevant info. You need a mix of both to win the hearts of the fickle searcher.
I descend from my soap box. Enjoy.
Back to top