Google Adsense

Usage Data vs Relevancy Algorithms

Written on March 21, 2010 by admin

Filed Under: Advertising, book, marketing, seo

A few years ago Google’s chief economist Hal Varian explained that scale is over-rated:

We’re very skeptical about the scale argument, as you might expect. There’s a lot of aspects to this subject that are not very well understood.
…
So in all of this stuff, the scale arguments are pretty bogus in our view because it’s not the quantity or quality of the ingredients that make a difference, it’s the recipes. We think we’re where we are today because we’ve got better recipes and we have better recipes because we spent 10 years working on search improving the performance of the algorithm.

Wednesday Google’s chief scientist Peter Norvig shared his view:

We don’t have better algorithms than anyone else. We just have more data.

And this is why you see so many hucksters hyping trash, committing fraud, scamming users, cutting corners, and working legal loopholes at launch time to try to grow marketshare *at any cost*

Build the scale and you have the cashflow and feedback mechanisms in place to test viral marketing strategies, improve conversion rates, increase real (and perceived) relevancy, and lock in users.

“In a July 19, 2005 e-mail to YouTube co-founders Chad Hurley and Jawed Karim, YouTube co-founder Steve Chen wrote: ‘jawed, please stop putting stolen videos on the site. We’re going to have a tough time defending the fact that we’re not liable for the copyrighted material on the site because we didn’t put it up when one of the co-founders is blatantly stealing content from other sites and trying to get everyone to see it.’”
…
“Our dirty little secret… is that we actually just want to sell out quickly,” said Karim at one point. In an e-mail, Chen talked about “concentrat[ing] all of our efforts in building up our numbers as aggressively as we can through whatever tactics, however evil.” - Ars Technica

Welcome to the exciting world of innovation in online media!

Without brand you have nothing.

With brand even a wounded duck full of unauthorized scraped content like YouTube or Mahalo somehow manages flight, at least for a while. Then you only need to find someone dumb enough to buy the growth story and purchase the bag of smoke before the fire emerges.

Of course people don’t have to cut corners, lie, cheat, and steal to build a real business. Those are the strategies employed by people trying to sell value where none exists. You can do just fine by dominating a small niche THEN leveraging data to grow. It is not sexy. You probably can’t hype to the media. It might not lead to an 8 or 9 figure payday. But then you won’t have to describe your strategy as “whatever tactics, however evil.”

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Usage Data vs Relevancy Algorithms

Cup of Joe: Why Ads Are Devastating to the Users You Love

Written on March 20, 2010 by admin

Filed Under: Advertising, marketing

A few weeks ago Ken Fisher wrote a popular blog post about how ad blocking software can have devastating effects to the websites that you frequently visit. Mr. Fischer describes how ad blocking software is responsible for showing false page view data to ad networks. As a result each ad is priced at a lower rate because the number of impressions are significantly smaller. The number of page views is an extremely important metric for websites that sell advertising based on a CPM price model. So it’s only understandable that Mr. Fischer and other online publishers will hold a grudge against ad blocking software.

While I can understand Mr. Fischer’s frustration I cannot sympathize. To be completely honest I use ad blocking software every day. In fact on at least one occasion add blocking software has been responsible for a pretty embarrassing moment. So you’re probably asking yourself why does someone who feels so strongly about marketing block advertisements? It’s simple really, I hate ads.

What? You hate ads? How can you write for Marketing Pilgrim and hate ads? In my opinion marketing is fundamentally organizing people around information. Interrupting people with abrupt irrelevant commands isn’t how you organize people around information. Instead speaking to them on a unique and authentic level is more effective and genuine.

Putting philosophy aside, in my opinion ads are the worst way to monetize content. Generally speaking an increase in on-page advertisements contributes to a degraded user experience. Which can lead to lower user retention levels and decreased page views. Online advertisements are also ripe with fraud and manipulation. Historically click through rates have been at around 2% for most online advertisements. All of these factors and more contribute to the extremely low return on investment.

Online ads add to a decreasing user experience by taking attention away from the site’s primary content and placing it on the ads. This is not the actions of rogue spammers, this is the fundamental method to making any substantial revenue from ads. An excellent example of this in action, is taking a look at Google’s own recommendations for ad placement in the Adsense program. Here we see Google advises users to place ads on every available white-space on the page. This is a huge contradiction for a company that was so widely praised for starting with such a clean user interface.

Most ad platforms have large potential for fraud and manipulation. This is is an issue that not many professionals in IM discuss publicly because, quite honestly, whether they are participating in the fraud or not they still stand to profit off of ad manipulation. To a great extent Google and some of the other larger ad networks have gone to great lengths to minimize the impact of this type of fraud. However, any potential for fraud creates an uneasy market place where advertisers and publishers are continually left wondering if they are being taken advantage of. Google doesn’t help matters by keeping the exact specifics of their pricing model a secret from both advertisers and publishers. What’s even more devastating about these fraud schemes is that they can manipulate entire ad markets not just the individual ads they are targeting.

We reported back in January that the average click through rate for Google Adwords is around 2%. This means that 2% of the site visitors are clicking through on the ads. Most businesses off the Internet wouldn’t be able to survive with a 2% conversion rate. The only way to make substantial revenue from ads on the Internet is to completely dominate the market and control the flow of information. *cough* Google *cough*.

Wow Joe what do you want me to do? Not make any money? Absolutely not! But I do think that more companies and content producers need to experiment with different business models that aren’t reliant on ad dollars. The mainstream media on the internet is already starting to experiment with pay walls and different premium membership options. While I generally agree with the old saying that information should be free, I do think there is substantial room to monetize parts of the web that are currently a free-for-all. For example there are many opportunities to monetize communities and forums that provide quality content and meaningful dialogue to its users. Another potential opportunity is product development. Content developers and publishers should work to create their own products aside from their content that they can offer to their regular subscribers for premium fee.

So next time you see a drop in your ad revenue don’t blame the users, blame the ads. They got you into this mess and they aren’t going to get you out!

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Cup of Joe: Why Ads Are Devastating to the Users You Love

Keyword Spy Review

Written on March 20, 2010 by admin

Filed Under: book, marketing, seo

Keyword Spy offers 3 different accounts.

• Research
• Tracking
• Professional

The countries available within a Keyword Spy account are:

No other competitor really comes close to the breadth of their country offerings.

Keyword Spy Research Account

Keyword Spy’s Research account gives you access to the following data

• PPC Ads (ad copy, the keyword, estimated search volume, estimated CPC, the position last seen of an ad and it’s average position, total days seen/days checked. You can also see the ad url and destination url of the ad in addition to other keywords being bid on for that particular ad, as well as an estimated ROI.
• PPC Keywords - showing individual keywords, ROI, search volume, CPC, total profitable ads, affiliate ads on that keyword, days seen, last/first seen
• Organic Keywords - showing individual keywords, position in the SERPS, total search results, estimated CPC, and the URL
• Competitors in PPC and Organic results.
• Sub-domains

The research portion does *not* include organic or PPC overlap coverage, which kind of stinks especially when you consider the price point they charge.

You get access to their Top 1000 sites and keyword reports which can be previewed here.

You can search by keyword as well. A Keyword search will show you:

• PPC Ad Copies with Keyword in them
• Up to 1000 related Keywords
• Misspelled Keywords
• PPC Competitors
• Organic Competitors

You can filter with these metrics but you can only apply 1 filter to the results at a time. Which can be bothersome if you are doing large scale research as they limit the exported data to 50,000 keywords.

Research Account Metrics

• ROI- they compute this as (Days Seen*Percentage Seen/Number of Days Seen since Last Seen). Below is a screen shot of their formula. Again, this is based on the assumption that the PPC advertiser is shrewd and on top of things. I don’t particularly care for this metric. ROI to person A can be much different than ROI to person B for a variety of reasons.



• First/Last Seen- Last seen is the last day KS saw the ad (they scan daily) and First Seen shows the first day KS saw the ad (I believe its back to August of 09 as of this writing).
• Profitable Ads - Ads that are profitable based on their internal metrics (like ROI and such) out of total number of ads.
• Affiliate Ads - Ads that are affiliate ads (based on destination url) out of total ads found.

Screen shot of PPC keyword tab showing the above mentioned metrics:

Keyword Spy’s Tracking Account

The Tracking account option gives you real time tracking in Google, Yahoo, and Bing for your PPC and Organic campaigns. This can be useful in checking out your coverage and competition across all three engines. You can also benchmark your data with the competition’s scraped data.

Of course, the question is do YOU want your campaigns being monitored by a spy tool that makes its money but showing advertisers their competition’s organic and PPC data??

You can read about more of their tracking/alert/coverage type options here, but outside of tracking and coverage you get:

• Landing Page Intelligence - shows current landing page, ad copy, and destination URL for a particular landing page.



• Organic and PPC overlap data (only between 2 sites) and quite frankly, this is much more research than tracking and should really be included in the research account IMO.
• Benchmarking in PPC/Organic Listings (below is a screen shot of the organic one, they are fairly similar)

So the tracking account is really more for tracking your campaigns across the 3 big PPC engines with some nifty benchmarking and gap analysis features but I don’t see it as being overly useful for smaller PPC advertisers, although the coverage options might be a good fit for those in competitive markets across Google, Yahoo, and Bing. In general, Spy Tools aren’t all that great at looking into smaller sites and markets simply because the resources required to be accurate with somewhat sparse data would be overkill and far to costly. This is why I do not really feel the tracking option is going to be a good fit outside of pretty big PPC advertisers.

Professional Account

The Pro account combines the Research and Tracking account features (up’s the overall trackable keywords, export limit, and query limit) plus gives you access to a couple new features:

• Affiliate Intelligence
• Affiliate Reports

Affiliate Intelligence

This tool gives you access to look at products and ads being used by 132 affiliate networks.

You can click through on any network and be shown their offers by URL with searchable affiliate ads for those products.

Affiliate Reports gives you access to big players in the affiliate marketing space such as CJ, LinkShare, Clickbank, ShareAsale, etc. Here you can access top affiliate products and top affiliates by product id and affiliate id respectively. You can also use affiliate product and affiliates id’s to search in the destination URL field to try and find additional products/ads they may be promoting.

Keyword Spy mentions something about “Anti-cloaking” technology but they do not elaborate on it. However, color me skeptical that these affiliate options are able to uncover properly cloaked links by top affiliates. So while this may be good for help in looking at potential affiliate products, as well as finding affiliates who do not cloak their links, I’m really not overly impressed with these features but they can be somewhat useful when first starting out.

In Closing

Keyword Spy is a feature rich membership and they have a deep database. For me, if I had to pick just one tool I would opt for either SemRush or SpyFu as both supply solid PPC/SEO competitive intel at a much more reasonable price. Although, if I were a serious PPC player their tracking account might be quite nice (still have reservations about giving a spy tool company my campaign data though.

Read more here:
Keyword Spy Review

Google: The Social Media Company

Written on March 19, 2010 by admin

Filed Under: book, marketing, seo

Over the last few years, the popularity of social channels – for professionals, teens, grandmas and everyone in between – has skyrocketed. Consider the recent numbers:

• Twitter experienced an annual growth in 2009 of 1,382%
• Facebook now boasts 400 million active users
• Every minute, 20 hours of video are uploaded to YouTube

Between blog posts, Facebook status updates, tweets, videos and every other piece of social content published, there’s a whole lot of information floating around out there.

Enter the latest social media player, Google.

Google’s latest activities, acquisitions and features all point to the fact that the search giant no longer has a close eye on web 2.0; it’s already there.

Here are 5 ways Google is now becoming a dominant social media player:

1. Google Social Search

Until now all of the social content in channels like Twitter, Facebook and LinkedIn, hasn’t been easy to find in a central place – including through Google search.  Until now, that is.

That’s where Google Social Search comes in. It’s still in the experimental stages, but this new feature combines users’ social connections with organic searches. For example, if you were to search for “New Zealand,” social search results would appear beneath the organic search results. The tool scans your social connections’ content (based on the social accounts included in your Google profile) to create these results.

2. Google Buzz

These days, it seems the social world is abuzz with talk of Google Buzz. This new product is built into Gmail and essentially turns users’ inboxes into social networks. A mobile version of Google Buzz is also available.

Here’s how it works: Google Buzz leverages current email contacts and connects you with their social profiles. Through Gmail, you can share status updates and photos, and start conversations, all through from your email.

What does this mean for your brand? You may want to consider adding Gmail to your social media marketing mix.

3. Twitter and Facebook Feeds in Search Results

Imagine the tweets highlighting your latest blog post or a new product launch getting found in organic searches. These days, that’s a reality.

At the end of February, Google happily announced on Twitter that public status updates from Facebook fan pages would now be included in real-time search. Facebook joins a long list of other social content appearing in search results including:

• Twitter tweets
• FriendFeed updates
• Google Buzz posts
• MySpace updates

Twitter and Facebook marketing efforts, then, take on new importance and new meaning. It’s now essential that all social content be optimized just as other online content is optimized.

4. Google’s Social Acquisitions

Still not convinced that Google’s sights are set on social? Just check out the list of its acquisitions over the last nine years, and count the social platforms.

In terms of sites owned by Google, the search giant has the gamut covered:

• Video Sharing: YouTube
• Blogging Tool: Blogger.com
• Wiki: Knol
• Social Networking: Orkut
• Image Sharing: Picasa
• Social Search: Aardvark

5. Google Wave

Essentially, Google Wave is 21^st century email. The tool enables real-time communication and collaboration – i.e., share images, post videos, discuss ideas. Within Google Wave, you can create a message, invite other users to take part in the discussion, and add files, images, videos, you name it.

The coolest part about the tool is conversations are live, but you can rewind the wave at any time to see a previous comment.

It’s only available in limited preview right now, and you need an invitation from Google to join. Unfortunately, I’m not one of the lucky ones. Google, if you’re out there, can you hear me?

There’s no doubt about it: Google’s gone social. What’s up in the air is where it will go next. What do you think will be the next Google social media tools or applications?