Archive for May, 2007
Many UK advertisers have recently received correspondance from Yahoo regarding the launch of a new ranking model (of which Panama is a step away from the traditional bidding system used by Yahoo), which bases positions of adverts on a number of criteria other than merely cost per click
A rough outline of the new algorithm could be outlined as follow (with positioning based on a eCPM)
(Cost X CTR) * 1000 x (?) = eCPM
Other criteria obviously goes into this equation and this is in its simplest form, however it does provide a basis for the Panama algorithm (according to a recent rep I spoke to)
However back to the e-mail, which goes on to state
“Sponsored Search system will be rolled out in the UK soon, beginning with advertiser migration later this quarter.” There are several UK advertisers who have already been invited to Yahoo meetings to discuss and demonstrate the new features in Panama. The migration in the UK follows the launch of Panama in the U.S. in October 2006.
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May 30th, 2007
According to a recent report by Internet Retailer, internet retailer (e-tailers) are shifting more and more of the marketing budgets to online marketing, in particular search engine optimisation (SEO) and Pay Per Click (PPC). The report was a result of a recent survey by Internet Retailer into such trends.
The report went on to state
- 30% of merchants said at least 50% of sales came via search engine marketing
- 82% of respondants did not have any plans to reduce pay-per-click spending for 2007
- 75% said search was working better than any other form of marketing activity
- Only 12% said it was underperforming compared with other online marketing activity.
However, suprisingly the report went on to say that many internet retailers prefered keeping their search marketing activity in house - somewhat suprising considering the current dearth of high quality search engine marketing specialists , with 66% going on to say that they had no plans to outsource such activity to external third parties.
Other trends were also highlighted during the survey
- 39% placed priority on paid search activity rather than SEO
- 34% focussed on SEO activity only
As regards sales activity, the following trends were significant
- 46% found that Organic search had a better ROI
- 37% said that PPC had better results
- 16% said both were equally as effective
The report concluded:
“Eighty percent of e-tailers are making changes to their website text to match what people are searching for. For the most poart, those engaged in PPC efforts plan to trim the number of keywords they manage but increase spending on those that survive the cull. The intents is to improve ROI on the most effective keywords.”
With statistics such as this becoming the norm in many sectors, it is still suprising how many retailers are still cautious at embracing the Internet. Whilst, I am by no means saying that developing an online presence is a guaranteed route to success, it is however an important part in any marketing strategy. I would also go on to say that their is an educational factor with search marketing, which in many instances needs to be overcome, however as a ‘profession’ (which lets face it online marketing now is), this should be part of our remit.
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May 17th, 2007
Today is … Google Searchology day. What is Google Searchology day you may well ask. Google Searchology day is a day devoted for Google to discuss its future plans regarding search and search innovations. The main feature is an invitation only press conference which will be webcast at 9:30 PT (US Pacific Time).
The speaker list looks very impressive, with Marissa Mayer, VP of Search Products & User Experience; Udi Manber, VP of Engineering; and Craig Silverstein, Technology Director all presenting.
To read the full Google press release, click here
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May 16th, 2007
I have been interviewing a number of potential SEO executive candidates recently however I have to say I have been suprised by how difficult it is to get good Search Engine Marketeers in the current climate.
One of the candidates I spoke to, from a largish Manchester agency, spoke of his optimisation of a fantasy football website, with a circa £2K (A month!!!) link building budget… for a fantasy football site? Sure most SEO’s out there would be rubbing their hands gleefully at such a client. However my general gist during the interview was a feeling that whilst there was no doubting the research skills of the candidate, I didnt get the feeling he could think creatively, and out the box, in order to produce a rounded campaign for a client, not one sided in its origins, and ultimately likely to succeed long term.
This seems to have been a common theme throughout the interviews, clients ranging from technical wiz’s with no marketing acumen, to simple marketeers with no technical acumen.
Maybe thats what makes SEO so good, or maybe thats whats holding SEM in the UK back.
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May 11th, 2007
I am constantly impressed by the state of the Search Engine Marketing industry in the UK, in particular the amount of research and ‘noise’ provided by the industry itself. In particular I was impressed with a recent report by Dylan Thwaites (and probably Jon Myers had a lot to do with it - with reference to the whitepaper itself referencing the author Jon Myers). That aside, a very insightful and interesting read,
The whitepaper itself focussed on recent research by the IAB/PWC which stated that 2.5% of all advertising spend in the US is spent on Search, compared against 11.4% in the UK. Dylan went onto state that it was his opinion that the UK online marketing industry is ‘the most advanced in the world’.
“The US market has roughly four times the volume of searches as the UK market and in bid economics should command higher prices for highly competitive phrases. It does not and this indicates a less competitive and less developed market state”.
Not mincing his word you may agree !!!!
The report concluded:
1. The search engines pay commission in the UK and this has had a firestarter effect on search penetration
2. The US market has a much higher proportion of in house search marketers, who to be less innovative and do not operate search as effectively as search agencies, slowing the flow of funds from other media
3. Many US search agencies reacted slowly to the paid search opportunity due to organic inertia
4. The UK market is more mature and more competitive than the US market and hence more intensely innovative
5. Cost per click prices are marginally higher in the UK, but there is no evidence to show that the engines are abusing their market dominance
Whilst I don’t necessarily agree with all the point raised in the report, points 1-3 within the above conclusions would seem to be on the ball from recent research we have conducted, however point 4 is slightly more contentious. In my opinion there are only a handful of agencies in the UK that can handle the large scale projects for the larger organisations, BigMouthMedia, Latitude, a couple of the WPP organisations to name a few. Whilst I don’t argue with his analysis of the recent MSN trials in France vs UK, whether this is comparable to the US market is debatable IMO
However on the whole, the report is well worth a read, and can be accessed by clicking here
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May 4th, 2007
Not sure I would believe it if it werent for the source, but Microsoft are apparently after closest rivals Yahoo. Wall St journals suggest a value of $50bn for Yahoo.
To read the full article, click here
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May 4th, 2007
