StepForth Web Marketing Inc.
Your Weekly Step Forth into the World of Search Engines
Wednesday, August 3rd 2005

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Highlight of the Week
Yahoo Publisher Network to Compete with AdSense

Yahoo Publisher Network to Compete with AdSenseFor the past four years, Google has been the undisputed leader in search. Its rivals, Yahoo!, MSN and Ask Jeeves have spent the past few years working to narrow the vast technological and popularity gap between them and the great Google. It has been a long and hard fought series of skirmishes and battles but this week, two of the three, Yahoo! and Ask Jeeves, signaled they might be getting closer.

In June 2003, Google made one of the wildest moves in the history of the Internet by innovating on the paid-advertising idea originally conceived by Overture. Already the most popular tool among search engine users, Google gave website publishers a revenue generating gift that kept on giving. Google's great PPC innovation was to permit AdWords advertising to appear on private websites, splitting the click-through fees 50/50 with the private webmasters whose sites delivered traffic. By giving private webmasters the opportunity to generate incidental revenues by acting as billboards for AdWords, Google saw profits from AdWords skyrocket while Internet users became conditioned to accept the small and unobtrusive ads.

The paid-search advertising market is worth billions and is expected to be worth tens of billions in a few years time. Yahoo! is betting that market will support a growing network of small to medium sized online publishers who will in turn bring more revenues to Yahoo!. Google, which generates over 90% of its enormous revenues from the AdWords program, might face serious competition from Yahoo!, which currently receives about 60% of revenues from paid-advertising.

This week, Yahoo! released a beta-test version of a similar program known as the Yahoo! Publisher Network or YPN. Open to a limited number of testers, including StepForth News, the YPN is meant to compete directly with Google's AdWords program. The beta is open, for the most part to US based users only. StepForth is fortunate to be among the few non-US based beta testers.

Yahoo! has had two long years to study the AdSense model and appear to have adopted a unique publisher-focused philosophy offering small and medium sized publishers access to syndicated Yahoo! products and services in a bid to brand Yahoo! content as well as Yahoo! generated paid-advertising. In other words, Yahoo! is not only serving paid-ads to webmasters, it is also helping them bulk site content with Yahoo! products such as search, shopping, travel, RSS, user-option personalization featured, and eventually, Yahoo! syndicated music and video services.

"Yahoo! has developed many highly successful relationships with web publishers around the world, and is building on those experiences to bring new revenue sources and compelling content to even more high quality sites," said Bill Demas, senior vice president, Yahoo! Partner Solutions group. "By helping the broader publishing community maximize the value of their sites, we aim to create an even more rewarding Internet experience for publishers, advertisers and users."

Much like AdWords, YPN will be a revenue generator for webmasters by delivering advertisements that match the topic of the document they are placed on. The Content Match™ feature enables publishers to place Yahoo!'s contextually-relevant listings on their sites and receive a share of the revenue generated by them. For example, ads that might appear in future editions of the StepForth Newsletter would likely be about search engines, search marketing, blogs, and/or tools for SEOs and website designers. Contextually driven advertising is cool but, profitable as it is, PPC is not the full story behind the YPN.

The Internet is the backbone network of global communications. Currently facilitating shopping, travel bookings, entertainment and instant-research, the Internet has supplanted traditional tools such as television and radio because it can easily mimic both mediums while simultaneously performing a number of other functions. Users interface with the Internet via documents that are, for the most part, created and posted by small to medium sized publishers. Yahoo! has adopted a publisher focused outlook and is looking to place its brand on information and entertainment content offered (eventually) on tens of millions of websites.

As publishers from every medium understand, the key to success is in keeping a captivated audience. One of the more interesting features of the YPN will be access to Y!Q, a context-driven search tool which is also in beta-test. Y!Q is a Yahoo! search application that uses the topic of the document it is embedded in or a trigger-word set by the webmaster to present search results in a transparent overlay. The results shown in the overlay consist of images, two news stories, and the first three organic search listings. The logic is site users will stay on a document instead of opening another search window and traveling away from the site. Y!Q is an open-beta. Webmasters interested in using Y!Q on their sites should refer to the Y!Q for publishers page.

Other integrated features in the beta include, Add to My Yahoo and Yahoo Maps, showing an inclination towards local, mobile and personalized search results.

"Add to My Yahoo!" will help webmasters and publishers find their way onto user monitors and personalized search results via the Yahoo! branded RSS feed and subscription service. RSS stands for really simple syndication and is basically a XML feed that delivers fresh content to people who subscribe to it. As with Y!Q, Add to My Yahoo! is already available for webmasters and publishers.

The inclusion of Yahoo! Maps shows Yahoo!'s understanding that user or webmaster generated maps are extremely important for local and mobile search users. Yahoo! has recently introduced an API for Yahoo! maps allowing webmasters to place geographic information on Yahoo! generated maps.

Yahoo! timed the release of the YPN beta to coincide with next week's Search Engine Strategies Conference in San Jose. As beta testers, we will be using some of these features in future editions.

by Jim Hedger, News Editor

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The Major Players

Ask JeevesAsk Jeeves introduces Paid-Placement AdNetwork

Ask Jeeves announced its long rumoured Sponsored Listing Program which will be officially introduced on August 15. Advertisers will be able to purchase paid-ad placement above paid-ads generated by Google AdWords. Using auction-for-placement format similar to Overture (now Yahoo! Search Marketing), bids are expected to start at 5-cents per click.

While the relationship with Google is not ending, Ask will provide premium placement to advertisers who bid directly through the Sponsored Listing Program. As the program populates itself with advertisers, it will choose placement of ads based on which is more profitable to Ask, leading to situations where a Google generated ad might appear higher than one generated through Ask.

At the same time, Ask today announced they are reducing the number of ads appearing beside organic search results in a bid to increase user numbers as an April 27th article at ClickZ noted, "Significant user experience improvements were tested over the past two quarters, and implemented in April. Most notable is a 31-percent reduction of paid ads "above the fold." This brings up more natural search results from Jeeves' Teoma technology, which the company has found to lead to stronger user retention and increased frequency of use. The company feels long-term gains in site visits will offset any impact on revenue-per-query resulting from the move."

On Monday, Ask Jeeves announced the integration of AJinteractive, with IAC Partner Marketing, the advertising division of Ask owner, InterActive Corporation, to form IAC Advertising Solutions. IAC Advertising Solutions will focus on search, media and performance marketing with the massive branded resources of IAC as the foundation for a massive advertising network.

For advertisers, benefits of the Sponsored Listing programs will include, premium placement on Ask Jeeves, Ask properties, and the IAC network, lower bid costs for prominent placement and an easy to use, self-serve system.

Ask Jeeves is the fourth most popular search engine in North America and one of the most popular in Europe. It has spent the last two years redefining itself and its search technology. When it was acquired by IAC earlier this summer, the pieces started to appear to fall into place. While the Sponsored Listing Program is not as sophisticated as Google's AdWords, it is a large step forward in closing the chasm between Ask Jeeves and its larger competitors.


Jupitermedia sells Search Engine Watch, SES and ClickZ Magazine

Search marketers were surprised yesterday by the announcement that three of the most influential publications in the search marketing sector had quietly been sold to new owners. Jupitermedia, publisher of Search Engine Watch and ClickZ Magazine, announced plans to sell its research, publishing and trade show divisions to UK-based publisher Incisive Media PLC for approximately $43million in cash. The timing of the announcement is interesting as it falls on the eve of the largest annual Search Engine Strategies conference, SES San Jose which opens next Monday (August 8th).

In 2004, Jupitermedia reported nearly $40million in revenues which translated into $23.6million in gross profits from its online media and search event divisions. It also reported revenues of $21.5million in the first half of this year.

Jupitermedia chair and CEO, Alan Meckler, who is interested in expanding the digital images and photography divisions of Jupiter, said the sale would help strengthen Jupitermedia's finances, making additional acquisitions possible. Currently, the digital image and photography market is dominated by Bill Gates' Corbis Images and Getty Images.

The sale is said to demonstrate the continued strength of the B2B publishing sector, at least as it relates to search marketing. Incisive Media says it will finance the purchase by releasing new shares to institutional investors and through increased debt facilities. It also says it wants to expand the number of SES tradeshows while expanding its reach in the North American search marketplace.

"The acquisition will allow Incisive Media to strengthen its footprint in the US and to roll-out the SES model across the territories in which the company currently operates," Incisive said in a media release.

Search Engine Watch is the home of search journalism pioneer, Danny Sullivan and his team of bloggers, journalists and SES organizers which includes Gary Price, Chris Sherman, and Elisabeth Osmeloski. In a post to the SEW forum, Danny expressed optimism over the sale stating that he and his team, "... are carrying on with our regular work as part of the deal. While the owners are changing, the quality content we aim to deliver to you is not. Overall, it's a good thing. Jupitermedia is concentrating on its images businesses, and the deal puts us with a new owner looking to expand the work we do."

Expansion of SEW's work seems to be in the works for Incisive as well. Incisive has announced it plans to organize a larger number of SES conferences in the future with a focus on the European and Asian markets as well as the North American market.

by Jim Hedger, News Editor
The Net Reality

A Brief History of Search

The SEO Consultants Directory is a useful resource for search marketers and potential clients of SEM firms. As a peer review network, SEO Consultants helps clients find reputable SEM firms. It also has a few surprises for its users, one of which I stumbled upon today while researching another story.

History buffs will be interested to see a simple but fairly detailed chart of the history of search engines dating back to the development of ARCHIE in 1990. The chart has only eight entries between 1990 and mid 1993, but things start to pick up in March of '93 when Bill Clinton sent the first email message.

According to the chart, Yahoo! was released days after the release of WebCrawler in April 1994. Two months later, Lycos began sorting the web. Within two years, another dozen search tools joined the original 3.

The chart provides a nostalgic look at the history of search engines. Anyone with an interest in how we found ourselves where we are today can find hours of self-directed infotainment.

by Jim Hedger, News Editor
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