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July 3, 2008

Google Ordered to Hand Over YouTube User Info, But Not Ad Records

A federal judge yesterday ordered Google to hand over to Viacom information about YouTube users' viewing habits.

U.S. District Judge Louis L. Stanton's order set off a firestorm among privacy advocates, including the Electronic Frontier Foundation. The group contends the disclosure of the information would violate a federal privacy law and could potentially expose private information about YouTube users.

"The Court's erroneous ruling is a set-back to privacy rights, and will allow Viacom to see what you are watching on YouTube," Kurt Opsahl, EFF senior staff attorney, wrote on the EFF blog.

Viacom filed suit against Google's YouTube in March 2007, claiming the online video sharing Web site had failed to sufficiently stop users from posting and watching copyrighted material. The judge's order came Wednesday in response to that lawsuit, according to published reports.

Google was ordered to release: a user's log-in ID, the video ID, and the IP address that locates computers on the Internet, though doesn't necessarily identify them by owner.

While Viacom also asked for records involving advertising transactions for Google's AdWords and AdSense programs, the judge rejected that request. Viacom reportedly had sought an electronic index that shows how data in a database are organized by listing the database’s fields and tables, though not its underlying data.

Viacom had contended this information would have shown that Google could or should have known that its advertising revenues were associated with the pirated videos.

Google also will not be required to disclose its computer source code for the YouTube.com search function and the Google.com search engine.

Google doesn't disclose how much revenue it generates from advertising or branded video on YouTube. But Forbes estimates it at $200 million this year and $350 million in 2009.

Posted by Anna Maria Virzi at 7:08 PM | Permalink | Comments (0) | TrackBack

June 24, 2008

How Will Google Ad Planner Promote Network Inventory?

In his presentation at the ARF Measurement conference yesterday, Wayne Lin, business product manager at Google, stuck mainly to what the company had already announced about Ad Planner, its new audience research and media planning product.

Things got a little more interesting during the Q&A, when someone in the audience asked him how Google would promote sites in its own network. It was the first time Google has addressed its conflict of interest with the free tool. Lin said he believed the right approach is to follow the formula it used for organic versus paid listings in search.

"If we do benefit sites in our network, we should clearly label that," he said.

It's interesting to note he said the company "should," not that it "would," disclose properties its peddling. Keep an eye on this aspect of Ad Planner.

Designed for media planners, Ad Planner alllows its users to save their media plans or export them as a DoubleClick MediaVisor file. It uses the same data sources as the company's new Google Trends for Websites measurement play -- which is to say it pulls from search data, Google Analytics data, panel data and third party market research. (In retrospect, it was obvious what Google had in mind when it recently began asking Analytics users to specify whether their site data could be shared anonymously with its other apps.)

Lin said Google is now weighing whether to pursue Media Ratings Council accreditation, which would validate its measurement approach. One audience member called it "regrettable" that some firms had sought to create reliable audience estimates by fusing together different databases willy-nilly.

Posted by Zachary Rodgers at 10:59 PM | Permalink | Comments (2) | TrackBack

June 23, 2008

Rumor: Google Android Development Stagnates

Last fall reports of a G-Phone were quelled with the announcement of Android, an open source operating system that would run across all carrier networks. Google established the Open Handset Alliance with the existence of Android, and set to work on the operating system, developers creating handsets, and applications with a goal of availability in the second half of this year.

Demos of Android, on compatible handsets, have been shown at conferences and events here and there, but that’s been few and far between. The Wall Street Journal by reports today the release will be Q4 or later. Carriers and developers are having problems developing for the system. And carriers, in particular, are have issue making it theirs, according to the Journal.

This morning I met with Marcus Colombano VP of marketing from LightPole, a geo-contextual content publishing and advertising platform for mobile that works with companies such as Yahoo Local, Mappy Hour, and Yelp. He who wasn’t surprised by the news. He said his first take last year was “that there was “that there wasn’t more meat” to the Android announcement. While LightPole intends to develop for Android, the next development platform for his company will be the iPhone. “As a small organization, it makes more sense to develop for platforms that exist,” he said.

Posted by Enid Burns at 4:05 PM | Permalink | Comments (1) | TrackBack

June 16, 2008

Yahoo-Google Confounds Digerati, Marketers Universally Miserable

One hundred hours later, opinion makers still can't agree on whether Yahoo's search ads deal with Google was a brilliant move long overdue or the beginning of the end.

For those in the latter camp, perhaps the most stinging indictment came from Joe Nocera, who wrote in the Times that Yahoo has "chosen to become a pawn of the most dominant company on the Internet." That's a strong remark, given the deal allows Yang & Co. to retain a control lever they can use to ratchet up monetization when flagging earnings seem to call for it.

The more they use that lever, the less pleased marketers will be. Many fear price hikes as Google boosts its control of search ad spending to 90 percent or more. Increases are probably not around the corner however, except insofar as advertisers give up on Panama and spend more on Google, thus bidding keywords higher. Under that scenario, Google will encounter less pressure to create competitive value for advertisers. That could manifest in higher campaign costs down the road.

As distasteful as Google's embrace is to Yahoo, it's nothing compared to what Microsoft's feeling -- especially given it lit the fuse on the bomb that just blew up in its face.

Indeed, if the six-month drama surrounding Yahoo's fate were a drawn-out Looney Tunes episode, the screen would now display a blackened Wile E. Coyote (Microsoft, a.k.a. Eatibus Anythingus) moments after an elaborately concealed explosive device detonates on top of him. The singed coyote can only look on in despair as Road Runner (Google, a.k.a. Hot-rodicus Supersonicus) casually polishes off the platter of bird seed laid as bait. The comparison breaks down a bit at this point, since Yahoo clearly has to be both the pile of Acme brand TNT and the bird seed.

Whatever. The big question now is, what's Wiley planning next? It was only a year ago that its loss of DoubleClick in a fierce bidding war with Google drove Microsoft to hotly pursue a purchase of much larger aQuantive. There is no acquisition target bigger than Yahoo, but many smaller snacks remain on the table -- for instance AOL, Facebook, ValueClick, AdBrite, Tribal Fusion, and Specific Media.

Finally, many believe an eventual acquisition of Yahoo is still very much in the company's plans, and that Yahoo's Google deal has merely bought it time. It's entirely possible regulators will block the relationship on anti-competitive grounds, in which case pressure will mount for Yahoo to return to the negotiating table.

Posted by Zachary Rodgers at 2:09 PM | Permalink | Comments (1) | TrackBack

June 15, 2008

iPhone Applications, Google, and PPC

Over the weekend, a Google search for "iPhone applications" turned up an assortment of sponsored links.

Google Mobile appeared as the top sponsored link in the right-hand column. (See right.) Visitors who clicked on that link were directed to applications, including maps and search, designed for the iPhone or BlackBerry.

And, AT&T was touting its "Media Mall," a site to download games , ringtones, and other applications for cell phones. AT&T is the exclusive provider of the Apple iPhone.

And Apple appeared in the sponsored links that appear across the top of the search engine results page, along with Zinio, which was promoting magazines for the iPhone.

For the words, "AT&T and iPhone," Google Mobile also turned up as the top sponsored link, followed by AT&T Internet, which was promoting DSL service for $19.95 a month.

The estimated average CPC for the keywords "phone application" was $2.24, while "cell phone application" was $2.74, according to Google AdWords. It did not show an estimate for "iPhone application."

Posted by Anna Maria Virzi at 2:08 PM | Permalink | Comments (0) | TrackBack

June 10, 2008

Google Accepts Atlas Tags

When Google announced its acceptance of third party ad tags (finally) last month, there was a gaping hole where one of the largest ad management platforms should have been. Atlas, owned by Microsoft's aQuantive, was missing from the lineup of firms whose tags were listed, including DoubleClick (duh), Valueclick's Mediaplex, Eyeblaster, Dynamic Logic and others.

Of course, jumping to conclusions on this one was the reaction many, including the folks here at ClickZ had. Certainly, despite the fact that Atlas has a huge chunk of the ad management market, it looked as though Google may have been snubbing Microsoft's platform. Hey, they're not exactly friendly.

But, today Google announced it will accept Atlas tags, in addition to tags from Tumri, an ad targeting system. Still, there are lots of technologies advertisers and agencies use everyday missing from the list.

Posted by Kate Kaye at 5:16 PM | Permalink | Comments (0) | TrackBack

May 30, 2008

'Sex and the City' and Search

The opening today of "Sex and the City," the movie, got search engine marketers into action, using paid search on Google and Yahoo to promote everything from bling (GiltyCouture and Ziamond), to ringtones, to an online video site (MyHubTV).

What, no Manolo Blahniks?

Yahoo paid search results, below.

Posted by Anna Maria Virzi at 8:53 AM | Permalink | Comments (0) | TrackBack

May 27, 2008

Quote of the Day: Tim O'Reilly

"So let's assume that Google has won at search, or close enough to make no difference. Is Microsoft better off trying to reimplement cat and ls [old UNIX utilities], or trying to figure out what's still missing from the Internet Operating System? While they are locked in penis envy, all the really cute girls are going out with startups."

-Tim O'Reilly, arguing Microsoft's search obsession has distracted it from important work it could be doing in service of Web users.

Posted by Zachary Rodgers at 12:59 PM | Permalink | Comments (1) | TrackBack

May 22, 2008

Disney Resorts Going 3-D on Google Earth

From the folks who brought the Hannah Montana concert tour to the movie screen in 3-D, next up: Disney Resorts in 3-D on Google Earth.

Walt Disney Parks and Resorts has been working with Google to develop a virtual tour of the Magic Kingdom, Epcot, and other properties, USA Today reports. Visitors will be able to see rides like Splash Mountain, hotels, and other attractions in 3-D.

While the interactive map was to go live May 20, it's apparently not ready yet. "Mickey and friends are working away to make it great, but it's currently still in development," reads a note from the Magic Kingdom.

Posted by Anna Maria Virzi at 7:54 AM | Permalink | Comments (1) | TrackBack

May 20, 2008

Ads See Light of Day on Google Image Search

When a Google exec mentions in an interview the search giant is thinking about a new ad product, it's hard to say whether it will become available to advertisers tomorrow, next quarter, or be swept under the virtual rug. In early May Marissa Mayer said in a Bloomberg Radio interview that monetization of its Image Search was something Google was considering. It was hard to read from the interview, though many interpreted her response as a done deal, when we might see image ads with our image results. Depending on your search queries, that day may be today.

At Google's factory tour it was discussed that the ad format was being tested. A Google spokesperson provided further information for ClickZ. "As part of our ongoing commitment to innovation and to help users find new and better ways of getting the information they're looking for, we are currently conducting a small test to show ads on the results page for Google Image Search. The experiment is restricted to a limited number of U.S. advertisers."

A few random searches turned up no ads so far.

Posted by Enid Burns at 4:35 PM | Permalink | Comments (0) | TrackBack

May 9, 2008

Google's Mayer Talks Image Ads in Search

On Bloomberg Radio this week, Google Search exec Marissa Mayer was asked how Google justifies blowing off the $200 million per year the company claims it could make from text ads on its image search results. Her response, "Ads should match the results." She said if Google were to run ads in Image Search, they would likely be image ads. She also said attention would be paid to the relevance, user experience, and types of interaction with image search.

Based on those remarks, Bloomberg posted a follow-up story, "Google May Run Display Advertisements With Image-Search Results," that makes such advertising appear imminent. Then came the blogged headlines: "Google Will Put Display Ads Into Image Searches on Tom's Guide and the speculative "Will Image Ads Bring Google More Money?. Are these publications, and plenty others, jumping to conclusions? Yes.

Listen to the radio interview (I recommend using Explorer, it crashes Firefox) for yourself. Mayer is answering questions rather than offering information about upcoming advertising products.

That said, selling ads on image search results pages would contribute significant revenues to Google. There's interest from advertisers, too. "For advertisers to have a very visual product… could certainly be a great opportunity," said Kevin Lange, director of operations at SMG Search, a division of Starcom MediaVest.

The caveat for image search versus text search: "What is the mindset that goes to image search and searches for 'car,' as opposed to Google.com and searches for 'car.'"

Lange also said Image search is a relatively small user base. ComScore data reports 707 million searches in image search, compared to 8.3 billion searches on all Google sites combined in March. Google received 149.6 billion unique searchers in March, and Google Image Search received 43.7 million uniques.

Posted by Enid Burns at 4:44 PM | Permalink | Comments (0) | TrackBack

May 8, 2008

Myanmar: Relief Fundraising Kicks In

A Google search for "Myanmar," devastated by a cyclone, shows that nonprofits are turning to paid search to help raise funds to assist victims. Here's a partial list of the results:

Posted by Anna Maria Virzi at 12:39 PM | Permalink | Comments (0) | TrackBack

May 7, 2008

Google Joins Venture for High-Speed Mobile Net Access

Google has signed onto a venture, led by Sprint, to develop and deliver high-speed wireless Internet access for mobile devices, according to a published report.

Comcast, Time Warner, Intel, Clearwire, and others are set to announce they will invest $3.2 billion for the technology called WiMax, the WSJ.com reports.

The New York Times, quoting an unidentified source, said Google could provide the search engine for the wireless platform, enabling it to sell advertising there. Google is said to be contributing $500 million to the initiative.

Plans call for the wireless data-and-voice network to have the download speeds of cable broadband and the reach of a cellphone network.

Posted by Anna Maria Virzi at 6:24 AM | Permalink | Comments (0) | TrackBack

May 6, 2008

Calculate the Value of a Widget -- in a Widget

Thank DoubleClick for this nifty tool: a widget that calculates the value of a widget.

Google's Ari Paparo, previously DoubleClick's VP, advertiser products, brought it to marketers' attention yesterday at IAB's digital video leadership forum. He participated on the panel, "Format Wars No More."

When asked if brands will start tracking mentions on Twitter, Ning, and other social applications, Paparo pointed out that tracking is fairly easy to do.

But assigning value to that chatter is tough. Paparo likened it to attending a party, picking up business cards, and then trying to attach a dollar value to that experience.

Sounds like a good candidate for another widget calculator.

Posted by Anna Maria Virzi at 7:55 AM | Permalink | Comments (1) | TrackBack

May 3, 2008

Microsoft Withdraws Bid for Yahoo

Microsoft on Saturday withdrew its bid to acquire Yahoo, opting against raising its offer $5 billion more or pursuing a hostile takeover.

Microsoft CEO Steven Ballmer, in a letter to Yahoo CEO Jerry Yang, said he was concerned that Yahoo would take actions that would make the company undesirable to Microsoft. Of particular concern: Yahoo's decision to test Google's search ads on its own results pages, and the possibility that Yahoo would work more closely with Google on paid search going forward.

Such an arrangement, Ballmer wrote, "would fundamentally undermine Yahoo!’s own strategy and long-term viability by encouraging advertisers to use Google as opposed to your Panama paid search system."

He continued: "This would also effectively enable Google to set the prices for key search terms on both their and your search platforms and, in the process, raise prices charged to advertisers on Yahoo," Ballmer said.

Yahoo Chairman Roy Bostock fired back a statement, reiterating that Microsoft's bid undervalued Yahoo. "We remain focused on maximizing shareholder value and pursuing strategic opportunities that position Yahoo! for success and leadership in its markets," Bostock said in a news release.

On Feb. 1, Microsoft offered to pay $44.6 billion or $31 a share for Yahoo. Since then, Microsoft said it agreed to raise its bid by $2 per share, but Yahoo wanted another $4.

Posted by Anna Maria Virzi at 9:39 PM | Permalink | Comments (0) | TrackBack

May 2, 2008

Art for iGoogle's Sake

Google lined up nearly 70 artists, fashion designers, and other creative types to contribute art work for iGoogle pages. The move appears to be just another sign that Google is working to make its site a destination.

Marissa Mayer, Google VP, search products, unveiled iGoogle Artist Themes at a reception Thursday night in Manhattan's Meatpacking District, a few blocks away from Google's NY headquarters. Notable contributors include artist Dale Chihuly, U.K. rock band Coldplay, designer Philippe Starck, and choreographer Mark Morris.

For the occasion, Google brought in some heavy hitters in the art and design world: artist Jeff Koons, architect Michael Graves, designer Marc Ecko, photographer Anne Geddes, and Robert Mankoff, cartoon editor of "The New Yorker."

Were the artists paid for their contributions? If they were, it wasn't in Google stock.

"I thought you gave us Google stock," joked Graves after the other artists explained what working with Google meant to them.

"It's almost as expensive as Jeff's art," shot back Ecko, referring to Koons. (Koons' "Hanging Heart," reportedly sold for $23.4 million last year.)

Posted by Anna Maria Virzi at 8:43 AM | Permalink | Comments (0) | TrackBack

May 1, 2008

Google Flips Switch on TV Ads, Spot Runner Gets Granular

As expected, Google has begun offering TV ad production and placement services to all AdWords advertisers. The public launch indicates the company has partially resolved the inventory problems that plagued the program in its early months, though it's still only pushing ads to customers of its DISH and Astound cable partners. Google's demo, viewable here, shows how advertisers can choose programs and networks, fix day parts, secure production services, and schedule campaigns.

With the launch, advertisers will be in a better position to analyze and compare the relative merits of Google's system with competing offerings, most notably Spot Runner. Spot Runner, which hired Joanne Bradford and Marc Rosenthal in recent months, is going after national advertisers whose budgets were too small for TV in the broadcast boom years. A client example the company shared last month is that of a purveyor of home power generators. "When we see a storm rolling in, we turn on their campaigns," CEO Nick Grouf said.

While Google is giving marketers the option of uploading spots or contracting jobs, Spot Runner has taken the tack of proactively packaging video ads for specific business types. You can see its library here, including an interesting set of political advertising templates I hadn't noticed before visiting today.

Posted by Zachary Rodgers at 4:13 PM | Permalink | Comments (1) | TrackBack

April 30, 2008

Google Artist Doodles

The MET in NY has a special exhibit right now Jeff Koons on the Roof, which possibly I can see a glimmer of from the roof of my building. Possibly that's why Google's doodle of the day is inspired by the work of the same artist.

Google has collaborated with almost 70 artists to create iGoogle art themes. Artists, designers, rock stars, pop stars, dancers, and athletes are involved: Jeff Koons, Dale Chihuly, Coldplay, Diane von Furstenberg, Dolce & Gabbana, Yann Arthus-Bertrand, Michael Graves, Philippe Starck, Robert Mankoff, Mark Morris, Oscar de la Renta, Anne Geddes and Tory Burch, to name a few.

Here's info on the doodles. And the full gallery of artist themes.

My Search Engine Watch colleague Kevin Heisler has a somewhat racier post about iGoogle's work with artists.

Posted by Enid Burns at 1:27 PM | Permalink | Comments (0) | TrackBack

April 28, 2008

Google, Champion of Small Biz on Capitol Hill

Please don't stifle online advertising! That was Google's plea during last week's House Committee on Small Business hearing on "The Role of Small Businesses in Stimulating the Economy." The company's VP Online Sales and Operations David Fischer spoke to lawmakers, stressing the benefits of Google AdSense to small Web site publishers, bloggers and educators.

Sure, most of them make very little off their AdSense ads. Rather than providing a range of incomes the more successful small businesses garner from AdSense ads, Google chose to focus on the obvious outlier. According to Fischer, Ohio-based AsktheBuilder.com collects an average of $42,000 each month from the ads.

He went on to say some 2,000 businesses based in the first district of Ohio earned $1.6 million in total last year through AdSense. It just so happens Republican Congressman Steve Chabot is a ranking member of the committee and represents that district.

Fischer ended his speech by petitioning members to think twice about proposing laws that could affect small businesspeople online. "As the committee continues its important work as a champion of small business I would encourage you to constantly consider how any new laws and regulations will affect these online entrepreneurs," he said.

Posted by Kate Kaye at 1:29 PM | Permalink | Comments (0) | TrackBack

April 17, 2008

Google Unshackles Website Optimizer

Google decided its Web site optimization tool will stand apart from its AdWords platform.

Previously, someone using Google Website Optimizer had to sign up for an AdWords account, although advertising on AdWords wasn't required.

The change, announced yesterday, appears to be intended to give the free tool its own identity and encourage Web designers and others to use it -- not just interactive advertisers or marketers.

Like before, the tool enables people to test two or more combinations of designs and content, including headlines and images, on a Web page. Through testing, marketing professionals and others should be able to identify what approach will better help them meet goals such as keeping visitors on a site longer or engage in transactions.

"You don't have to flip a coin" to figure out what Web site design and content is most effective, said Tom Leung, a Google business product manager. (Check out ClickZ columnist Bryan Eisenberg's interview last year with Leung about Google Analytics.)

In another announcement, Google's making its analytics tool available as a for-fee product when downloaded and installed on a company's server. Called Urchin, the tool was the basis of Google Analytics, an application that remains available for free on a hosted basis.

Posted by Anna Maria Virzi at 1:13 AM | Permalink | Comments (0) | TrackBack

April 15, 2008

Google TV Ads: General Release Confirmed for Next Few Weeks

Don't look now Ma, but your favorite soap's about to run its first ad for DogShoes.com.

Google has confirmed it will soon offer its TV Ads program, in trial mode since it launched a year ago, to all U.S. advertisers. In the next few weeks, AdWords customers large and small will be offered a shot at the broadcast glitz, complete with production referrals for those lacking TV-ready video assets.

The move indicates the company has resolved the volume issues that hobbled the program during its first months. As of late August 2007, just 50 clients had tested the system and the minimum spend was a modest (for TV) $10,000 a month, according to a source.

"Over the past months, our partnerships with DISH network and Astound Cable have scaled and we are pleased to expand our Google TV Ads program to more U.S. advertisers," the company said in a statement.

A story yesterday in Multichannel News had some additional details sourced to Keval Desai, Google product lead for the TV initiative. Desai told the pub advertisers including Lenovo and Priceline.com had placed ads through the system. “We serve millions of impressions daily," he reportedly added.

Desai was unavailable to comment today. Google would only add that it believes the wider advertiser launch "will ultimately lead to better, more relevant ads on television."

Posted by Zachary Rodgers at 4:34 PM | Permalink | Comments (0) | TrackBack

April 9, 2008

Microsoft/Yahoo Maneuvers: Curiouser and Curiouser

There's seemingly no end to the improbable machinations swirling around Microsoft's unsolicited bid for Yahoo. A flurry of late breaking rumors and announcements today conjured up a series of outlandish scenarios, including the combination of Yahoo and AOL's Internet operations, a possible joint bid for Yahoo by Microsoft and News Corp, and the (confirmed) outsourcing of a portion of Yahoo's search ads to Google.

The very latest developments, reported by WSJ this evening, are that (1) Yahoo and Time Warner's AOL are busy "closing in on a deal" to combine their businesses, yet another desperate maneuver to escape Microsoft's embrace; and (2) Microsoft is in "serious talks" with News Corp. about a plan to combine forces in a bid for Yahoo. No additional details were mentioned about this previously undiscussed scenario.

According to the report, Time Warner would contribute AOL along with a cash investment in exchange for a 20 percent stake in the company. The deal would be contingent on the approval of Yahoo's shareholders.

The latest rumors come at the end of a frenetic day for Yahoo, which this morning announced the planned acquisition of analytics platform IndexTools and this afternoon reluctantly stated it would conduct a test of Google's search ads on its own results pages.

Posted by Zachary Rodgers at 10:05 PM | Permalink | Comments (0) | TrackBack

April 2, 2008

DoubleClick Layoffs, Performics Sale Confirmed

The New York Times reports the DoubleClick layoffs are official, and imminent. They're also more widespread than expected, representing about 25 percent of DoubleClick's 1,200 U.S. employees.

Acquisitions breed layoffs, and these come as no surprise. Neither does the fact that Google will be selling off Performics, DoubleClick's SEM firm. Google owning an SEM firm would just plain look bad to clients worried about getting a clean deal from a search agency owned by the world's biggest search ad seller.

It would be like a large Web publisher owning an ad agency or something…. (Microsoft, anyone?)

Who might buy Performics? Valueclick has expressed an interest. At a conference in December, the company said it would want to be on the short list of suitors.

Posted by Kate Kaye at 5:39 PM | Permalink | Comments (0) | TrackBack

March 28, 2008

Spamming, the Google Docs Way

Hey, why build a Web site to hawk your penile enlargement kits or questionable pharmaceuticals? Get with the program - there's a new way to spam. The Google Docs way!

Talk about optimizing landing pages.

We just received a "suggesation for purchaseing Cheap Drugs Online" (sic) in our spam folder. The call-to-action caught our eye - an invitation to click on an unembedded URL clearly leading to a Google Docs page. It's not like we would've ever thought of it ourselves, but spammers wear a special breed of thinking cap.

On the one hand, the spammer behind this scam probably isn't getting great analytics. But spammers aren't interested in crazy notions such as purchase funnels. Only results count. And if this kind of scam results in a much more circuitous route to a whois lookup, so much the better for the spammer.

What will they think of next?

Posted by Rebecca Lieb at 2:42 PM | Permalink | Comments (0) | TrackBack

March 27, 2008

Google Click Volume 'Troubles': Month Two

Here we go again. ComScore has released its second consecutive report showing year over year and sequential flatness in Google's paid click volume. I addressed the issue last month, noting the company's ongoing efforts to improve click quality by reducing the number of ads on its network.

Blogs and pubs that use this metric as a minute to minute barometer of Google's health are missing the point. You can't separate causation here: How much is the result of Google's ongoing click quality initiatives, which are meant to increase cost per click and conversions while reducing overall clicks (a good thing for advertisers, and in the long run investors)? How much is the result of declining consumer confidence and ad effectiveness? (A bad thing for all parties obviously)

ComScore itself has argued you just can't draw any major conclusions from its findings. So please hold your tongue until Q1 earnings.

Posted by Zachary Rodgers at 10:26 AM | Permalink | Comments (0) | TrackBack

Google Provides YouTube Creators with Viewership Stats

Google today launches YouTube Insight, an analytics tool designed to allow a YouTube account holder to see how often her video is viewed based on geography and how it compares to others in that market.

Google is promoting the new feature as a way to help advertisers. "Insight will help advertisers optimize their marketing efforts, determine how successful they were, and discover previously unknown marketing opportunities," the company wrote in a news release.

On a Google blog, Tracy Chan, product manager, YouTube, wrote that the tool helps account holders to determine things like how long it takes for a video to become popular.

In another development, ClickZ yesterday spotted and reported on how Google is testing video ads in its search results pages from advertisers such as Intel and AT&T.

Posted by Anna Maria Virzi at 7:50 AM | Permalink | Comments (0) | TrackBack

March 26, 2008

Spotted in the Wild: Video Ads in Google Search Results

We've known since mid-February of Google's plans to test video ads in its search results pages, but we haven't seen them in action. That is until now. The below "testimonial" video ad for Intel is running today against a search for the company's name. Google SERP video ads were spotted earlier by two blogs:Google Operating System caught the same Intel clip on a search for "laptop," and Digital Inspiration screen-grabbed a video spot for AT&T that was placed against the keyword "phone."

The first image here shows what looks like a typical search ad with the addition of a plus sign (+), indicating the ad can be expanded:

Clicking (+) opens and plays the video. The ad is 45 seconds long and centered completely on a film maker's love for his computer chip. "This is the thing that lets me make movies," he says.

Once the clip plays out, a link to Intel's site appears over the video frame. Clicking the link takes the viewer to a product page for Intel's Quad Core Xeon processors.

Posted by Zachary Rodgers at 3:05 PM | Permalink | Comments (0) | TrackBack

March 17, 2008

DoubleClick Acknowledges Widget Ads, Will Support Them

There used to be a running joke at DoubleClick that the company should hire a VP of widget technology. "It'd be a short-lived career," VP of Advertiser Products Ari Paparo told me in an interview last August. He uttered the somewhat mocking remark by way of acknowledging that ever more advertisers were asking for widget capabilities.

Six months later DoubleClick is giving them what they want. The Google-owned firm today announced support for widget (i.e. "embeddable") ads. The function will reside within DART for Advertisers, where agencies will be able to easily add "virality" to their rich media campaigns.

Gigya is supporting the ad sharing component through its Wildfire technology, which can process widget installs on 50 social media platforms, including social networks, blogs and bookmarking services.

The main value DoubleClick can bring to the widget advertising phenomenon is standardized reporting. DFA customers will be able to obtain metrics on the number of impressions, interactions, viral “grabs” for each of the social networks. That may eventually help marketers gauge the conversion impact of all that viral sharing.

Posted by Zachary Rodgers at 2:54 PM | Permalink | Comments (0) | TrackBack

March 7, 2008

E.U. Set to Clear DoubleGoo merger?

The Financial Times published a report this week claiming that European regulators are preparing to give the go ahead for Google's proposed $3.1 billion acquisition of DoubleClick.

The story attributes the information to 'a person familiar with the situation,' and states that a formal clearance of the deal could be granted by Tuesday. The commission itself has set a deadline for a decision by early April.

Posted by Jack Marshall at 12:17 PM | Permalink | Comments (0) | TrackBack

February 29, 2008

ComScore Weighs in on Google Click Volume Debacle Sparked by Its Data

Earlier this week, when comScore set off a GOOG selling frenzy on Wall Steet with data showing click rate growth had flattened, I called the research firm for comment but to no avail. Amazing what 48 hours can bring. After a continued outcry, comScore has now issued a lengthy statement with additional data and charts (previously unavailable to non-clients) arguing, basically, that everyone should just calm down. Here's the money quote:

While we do not claim that these concerns are unwarranted, we believe a careful analysis of our search data does not lend them direct support. More specifically, the evidence suggests that the softness in Google’s paid click metrics is primarily a result of Google’s own quality initiatives that result in a reduction in the number of paid listings and, therefore, the opportunity for paid clicks to occur.

ComScore also shared the following chart, which demonstrates that click rates declined for much of last year, long before economic fears began bleeding into the nation's collective consciousness. It also shows how ad coverage, defined as the percentage of queries that display at least one ad, has declined roughly in parallel to click volume growth.

So you see, comScore says, Google is pumping fewer ads to its users and receiving fewer clicks in return. ComScore theorizes that reduction will be counterbalanced by an increase in revenue per query under the click quality initiative

On a separate but related note, agency heavy SearchIgnite has said it's seen none of the click volume declines described by comScore data, nor revenue shortfalls either. The agency, which claims to represent $200 million in search spending, said ad impressions for the first six weeks of 2008 were up 79.5 percent year over year, while paid clicks were up 47.2 percent. Additionally, ad spending on Google grew by 40.1 percent among the same group of clients (In other words the data doesn't include new business).

SearchIgnite's research should not be considered representative of the search industry at large, as it's just one agency with a defined group of clients who all share one thing in common: they follow SearchIgnite's advice. But then, can comScore's data be treated as really representative of consumers' click behaviors? After all, the company was seriously challenged by the IAB last year, and publishers of all stripes love to take potshots at its audience and traffic estimates.

My take continues to be that while the click rate fall-off is not necessarily the result of a lack of consumer confidence, a lack of confidence is bound to result in a reduction in click volume. More succinctly: No, Google's not insulated from a recession and no, comScore's findings are not (necessarily) a bad sign.

Posted by Zachary Rodgers at 12:52 PM | Permalink | Comments (0) | TrackBack

February 27, 2008

Google's Declining Click Volume: Theories

So you've probably already read about the comScore data published yesterday suggesting Google's paid clicks are no longer growing as fast as they once were.

The measurement firm believes paid clicks in October were up 37 percent over the year ago period, a distinguished growth rate, but that they fell precipitously from there. It estimates they grew 27 percent in November, 12 percent in December, and were flat in January. Further, its said the volume of clicks actually declined sequentially last month, from December to January. Sequential data is less valid than year-over-year, especially between Q4 and Q1, but this is still worth noting since we're talking about the heretofore-invincible Big G.

Still, the finding shouldn't come as a shock. Google said itself, during its Jan. 31 earnings call, that clicks are no longer growing as fast as they once did. The company's explanations for the anemic growth center on an ongoing effort to improve click quality by reducing the number of ads on its sites and its network. Example: On AdSense for Content, Google has shrunk the clickable area around ads to reduce accidental clicks. It also seems to have further restricted search keyword bidding on generic and low-converting terms, for instance "baseball." (Ably explained by Greg Yardley here.)

Investors aren't buying it however and have pummeled the company's stock since close of business yesterday. Further, many news and blog reports seem to be assuming macro-economic conditions are the principle force behind the click declines.

There are two main recession arguments. The first is that small to mid-sized advertisers are scaling back their search spend. The Wall Street Journal today quoted a Majestic Research analyst to this effect. The analyst said the SMB fall-off had been happening for the past four to five months. If so, that's a huge development but I honestly don't buy it. During the Q4 earnings call, CEO Schmidt said rather vehemently the company has picked up no hints of a macro-economic slowdown in its advertisers' spending activity; and a decline in small businesses would certainly qualify as such a hint -- a hairy, ugly one at that. "I'm happy to say that we have not yet seen any negative impact from the rumors of future recessions," he told investors. "We'll see what happens."

The second, more convincing economic explanation is that consumers are holing up for the coming (perceived) recession and conducting fewer shopping related searches as a result. Fewer people in the purchase funnel equal fewer ad clicks, plain and simple. What categories get hit? Travel, new car buying, consumer electronics. Entertainment and CPG, maybe not so much.

While I buy that argument, I’m not sure it's happening yet. Hitwise offered a dissenting data point to comScore's report, finding Google's downstream traffic to retail sites in January increased year over year, the opposite of what you'd expect based on comScore's numbers.

A further point that must be mentioned is that comScore's data is not infallible. Anyone shorting the company's stock based on the findings of one measurement firm -- a firm frequently contested by major publishers, I might add -- would likely be making a mistake.

Posted by Zachary Rodgers at 4:51 PM | Permalink | Comments (0) | TrackBack

February 15, 2008

Video Ads on Google Results Pages: How and Why

Beginning next week, Google plans to test video insertions on its famously QWERTY search results pages. The invite-only experiment will place small "plus sign" icons next to regular text ads, of the sort you sometimes see on Google Maps. When clicked, the symbols will expand to reveal a video ad that can be played manually by the searcher.

I spoke this afternoon with Google spokesperson Brandon McCormick, who said advertisers will pay by the click, whether that click starts the video or takes the viewer to a landing page. Bidding on keywords will take place through the AdWords interface, and video advertisers will compete with text links for placement. "The ad with the video would still have to be the best ad to appear" according to Google's quality scoring algorithms, he said.

He said Google was motivated to add richer ads to its SERPs because people are now used to seeing video and even expect it.

"As video gets more and more common on the Web, people are used to experiencing that level of engagement," he said. "We think, using the plus box video ad, we can maintain a positive user experience on Google.com and [provide a] richer experience."

I should be able to update this post with a screen grab by early next week, since McCormick said Google is eager to show these are non-intrusive placements.

Posted by Zachary Rodgers at 7:59 PM | Permalink | Comments (0) | TrackBack

Less Wind for Domain Kiting

Domain tasting (define) and kiting (define), where Web wrongdoers register domains for the five-day trial period to run ads or other quick moneymaking schemes then let the trial period lapse only to register again with another domain registry, has been in somewhat of a decline. Google took a step closer to stomping out any complicity of AdSense with a domain kiting detection system. "If we determine that a domain is being kited, we will not allow Google ads to appear on the site. We believe that this policy will have a positive impact for users and domain purchasers across the Web," said a Google spokesperson statement. It is not clear what the domain kiting detection system is, but some sources, including a blog post dating back to late January suggests Google will not accept domains less than five days old on the network, meaning under the tasting period.

Typo squatting won't be as easily squashed entirely. Just this morning Search Engine Journal posted not only an example, but a first hand experience coming across a typo squatting site.

Posted by Enid Burns at 1:14 PM | Permalink | Comments (0) | TrackBack

February 7, 2008

Web Analytics and Your Tax Dollars

You'd think cash-strapped government agencies that operate Web sites would jump at the availability of free and very robust tools such as Google Analytics.

Think again.

Earlier this week, I was on a fascinating call with the people who run many of the major federal government Web sites. The group included one woman who does the same for a state agency. We mostly talked metrics, and what measurements to consider when gauging the performance of sites that are non-commercial in nature -- like theirs.

Given the budgetary constraints these sites operate under, we spent a good deal of time discussing free (and very low cost), Web-based measurement tools, such as Alexa.com, Compete.com, and Quantcast. And, of course, Google Analytics.

That's when the woman from the state agency spoke up. Because her site represents a state government, and because hers is not the state of California, she cannot use Google Analytics on the site she operates. Why? Google's TOS, which specify "This Agreement shall be governed by and construed under the laws of the state of California..."

That's why at least one state agency is paying for (an admittedly more robust) commercial analytics package.

OK, so it's not $3.1 trillion in defense spending. But still.

Posted by Rebecca Lieb at 2:01 PM | Permalink | Comments (0) | TrackBack

February 5, 2008

Google Beta on AdSense for Games Coming

This week at Casual Connect, the casual games conference, in Amsterdam, we expect a handful of announcements on Web-based games. One such announcement, unconfirmed by Google, is the launch of Google AdSense for Games in beta. A source we spoke to confirmed it will participate in the beta for its Web-based games. We didn't get too many details, but were told initial placements would be video units.

Posted by Enid Burns at 7:14 PM | Permalink | Comments (0) | TrackBack

February 3, 2008

Google Weighs In On Microhoo: It May Be Evil

David Drummond, Google SVP corporate development and chief legal officer, issued the company's official response to Microsoft's proposed acquisition of Yahoo this afternoon. Essentially, Google's position is combining its two main competitors could be bad for the Internet...even border on evil.

Drummond says in the official Google statement:

"It's about preserving the underlying principles of the Internet: openness and innovation.

"Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies -- and then leverage its dominance into new, adjacent markets.

"Could the acquisition of Yahoo! allow Microsoft -- despite its legacy of serious legal and regulatory offenses -- to extend unfair practices from browsers and operating systems to the Internet? In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services? Policymakers around the world need to ask these questions -- and consumers deserve satisfying answers.

"This hostile bid was announced on Friday so there is plenty of time for these questions to be thoroughly addressed. We take Internet openness, choice and innovation seriously. They are the core of our culture. We believe that the interests of Internet users come first -- and should come first -- as the merits of this proposed acquisition are examined and alternatives explored."

Posted by Rebecca Lieb at 5:25 PM | Permalink | Comments (0) | TrackBack

February 1, 2008

Google Earnings Tidbit: Big Clients Dig Cost Per Acquisition Pricing

One interesting detail from Google's Q4 earnings call that we didn't cover in our write-up yesterday: Google's very happy so far with the uptake in cost per acquisition pricing, which lets marketers name what a conversion's worth to them rather than what click's worth.

"That’s really gotten strong adoption, particularly among our larger clients, and we’re really excited about that," said Larry Page.

It’s healthy and necessary for Google to diversify its ad formats and pricing models, especially in light of shakiness in its overall click volume and massive consolidation of display ad inventory (to the tune of 59 percent of all display ads) that could happen under a combined Yahoo/Microsoft. Google's share of display ads meanwhile barely registers by comparison at one percent of the overall pie, Nielsen says.

Posted by Zachary Rodgers at 4:29 PM | Permalink | Comments (0) | TrackBack

January 28, 2008

The Googling of an Icon

Google doodles appear to denote holidays and other special days, artists and people of note, and sometimes things a little closer to the commercialized world. To mark the 50th birthday of the LEGO, Google bricked up its logo. What's missing from the Google doodle treatment is that the LEGO'd logo doesn't link to a page of related search results.

LEGO claims a history with the search giant. In the early days of Google's 10-year history it used LEGOs to create a casing around 10 4-GigaByte hard disks (image) supporting the development of the search engine. Google is also said to have the bricks around the campus offices to encourage creativity, and reportedly to test new recruits.

Posted by Enid Burns at 11:01 AM | Permalink | Comments (0) | TrackBack