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Thursday, September 25, 2003

Say it ain't so Lycos, Say it ain't so...

Written by Jim Hedger and published at 9:31 AM

One of the oldest search tools on the web has recently introduced a sleazy marketing campaign targeting other search engine's clients. Lycos, owned by Madrid based TerraLycos, is using GATOR advertising to display advertisments for their free email system when users (who've either downloaded or been infected with GATOR software) go to competitor's sites.

Gator software is often installed by piggybacking other software such as file-trading clients. Often users don't even know it has been installed though when the signed the end-user-license for the software Gator has pibbybacked on, they agreed to the installation. When a web user goes to a site competing with a Gator client, a pop-up appears offering the competing service, often over the original site's content and media.

The use of Gator by Lycos is very disappointing and in the words of MSN UK Hotmail manager Will Collins, the campaign smacks of "desperation". "It sounds like it's trying to spam users. It's not something we'd do to promote Hotmail. It sounds too intrusive, an abuse of users." (New Media Age interview, 25 September 2003)

Say it ain't so Lycos...

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This SEO News was posted by Jim Hedger @ 9:31 AM.

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Wednesday, September 24, 2003

MSN Search Team Leaks Interesting Information

Written by Jim Hedger and published at 4:29 PM

A great deal of information is leaking out of Redmond Washington this week as Microsoft's spin-masters start the process of promoting the new search tool that will be incorporated in the new version of the Windows operating system currently code named, "Longhorn". The new OS will blur the division between a computer's hard-drive and the general Internet. The goal is to create the ultimate search tool, though with the number of features and tools being spoken of this week, it looks much like a Swiss-Army knife compared to the butter knife MSN currently provides.

Here is a couple of features announced this week:
When a user is looking for information on a specific subject, Longhorn will be able to search their drive, email files, digital images and other personal information as well as searching the general Internet for topic matches. In a bid to build a digital backup of a person's memories, MSN's new search tool will convert personal items such as bills, photos, music and documents into digital, searchable files. If you've seen it on your computer, it is basically up for grabs for the Longhorn version of MSN search. How this applies to documents stored on another computer remains to be seen but Microsoft will likely code in an opt-out feature allowing users to lock-down sections of their hard-drive from the search tool's spiders. According to MSN researcher Susan Dumais, the new search-function will help find material that users have seen at one time or another, regardless of whether it was an E-mail, an Office document or a web-site.

Geotargeting is another feature being rolled out with Longhorn and is also being tested by rivals Google and Yahoo. Geotargeting refers to the process of providing local listings for searches. If MSN, Google or Yahoo knows the searcher lives in a certain area (currently defined by US Zip-codes), it will return listings from businesses in that zip code that match the keyword phrases entered by the user. The easiest example is the local pizza company. When I want pizza, I want it now so a listing for a pizza parlor in Seattle, (no matter how yummy the pizza), is rather useless to me in Victoria. But if my search-query results in getting local pizza menus and phone numbers faster than a trip through the Yellow Pages, chances are I'm going to use this feature often. The same can be said for dentists, building contractors, veterinarians, horticulturists, bike shops, and most other service-based businesses. Chances are, these businesses will also be willing to spend at least as much as they spend on their annual Yellow Pages listings, (and as those of us running businesses know, that's a lot of pizza).

That Microsoft is making announcements and granting interviews about their new product tells us that the marketing hype is just beginning. Remember the roll-out marketing effort for the MSN7 that had a dude in a butterfly outfit placing butterfly stickers all over Manhattan last year? Don't worry if you fail to remember that campaign, if any trace of it is to be found on your computer, Longhorn will remember it for you.

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This SEO News was posted by Jim Hedger @ 4:29 PM.

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The Enemy of My Enemy is My Friend :: MSN and Yahoo vs. Google

Written by Jim Hedger and published at 4:24 PM

Last Monday I received an Email from the Wall St. Journal. Since this is something that doesn't happen every day, and, since the WSJ has already run the article with a quote from our correspondence, I thought it would be nice to share the email exchange with the world. :)

----
Dear Jim,
I saw your article on Internet Search Engine Database, and thought you'd be a good source to talk about paid search. I noticed last week that MSN search has begun incorporating more Overture results. Seems like a surprising strategy. What do you think of it?

Carl Bialik
Technology reporter, WSJ.com

-----

From: Jim Hedger [mailto:jim@stepforth.com]
Sent: Monday, September 15, 2003 9:06 PM
To: Bialik, Carl
Subject: RE: Overture - MSN

Hi Carl,

Interesting moves from MSN eh? The entire SERP (search engine returns page) has changed at MSN. Note the Google-style box of paid-ads on the right hand side of the SERP. Looks a lot like AdWords placements at Google.

At this point, anything I can say is only speculation so please take it as such. It's going to be a long answer to a short question but it is rather convoluted so...

2003 has been the year of consolidation, mergers and acquisitions, leaving only three really big players in the industry. They are, in order of size and importance: Google/Yahoo/MSN. Google rules the roost with over 75% of all search traffic going through their database in one way or another. The first thing on both Yahoo and MSN's agendas is to capture a bit of Google's action in one way or another.

Overture is going to be owned by Yahoo before the end of 2003 so we might as well refer to them as Yahoo/Overture. Overture, (soon to be a division of Yahoo) is trying to grow as quickly as possible, spending money like it's 1999. They are betting their growth on the advancement of the Contextual advertising market, expecting to see at least $1billion from this market within the next two years. That is why they are setting up the European offices in several commercial hubs. They already have Korea, USA, Japan and Canada well covered. I have little faith in the long-term run of contextual advertising but that stems from the past failure of banner advertising and current search engine user habits. (I have had nothing to do with banner advertising in the past so I don't have an axe to grind). Overture's only real rival in this market is Google's AdSense program. Please note: Yahoo bought Inktomi as well as Overture. Overture purchased AltaVista and AlltheWeb earlier this year, just before announcing the pending deal with Yahoo. Yahoo is out to displace Google and wants to fend off MSN when the time comes.

MSN is introducing its own search engine in the near future. Currently, MSN gets its listings from LookSmart and Inktomi. (LookSmart continues to be an independent but has its own problems - class action settlement announced today). Placing LookSmart aside for a second, let's remember that Inktomi is owned by MSN rival Yahoo. There is a couple of business relationships between MSN and Yahoo that make using Overture results a convenient option at this point. Again, note how similar the paid content at MSN looks compared to Google's AdWords program. MSN is going to do to Google what it did to Netscape by bulking search into their new general operating system currently codenamed "longhorn". It is very possible that MSN will be developing their own PPC engine in the future but they will need to have their own traditional (Google-like) search engine complete first. Until then, it is a marriage of convenience, a tactic that has worked for Microsoft in the past. Aside from Overture, all other PPC programs have tended to evolve from a stable traditional search engine.

The first object is to knock Google down a couple of pegs by coping their look, style and purpose. If MSN can use Overture and Overture can use MSN to accomplish hurting Google, it seems like the old saying: "the enemy of my enemy is my friend" applies here. I expect MSN to drop Overture in the future but, as long as Google holds onto prizes that MSN and Yahoo/Overture want, "co-operative competition" is a smart business strategy for MSN and Yahoo/Overture to follow. Today Google, tomorrow the world...

I hope that covers it. Again, most of this is speculation but it is based on watching these three companies very closely over the past few years. This is by far the most interesting non-violent business story I've ever seen. (This is better than Apple vs.. Microsoft was) I've been wondering when the WSJ or any other mainstream business daily was going to take notice. The outcome of this three-way war will change the way we use search functions on the Internet and might have a major impact on the availability and commercialization of what is now public information. The implications for society at large are enormous. The implications for Google's pending IPO are also huge. Google will need a massive war-chest to fight off MSN in 2004. That is another story altogether but MSN and Overture extending their fellowship will effect Google's financial future no doubt. Oddly, Yahoo continues to use results from the Google database. Funny ol' world wide web it is eh?

Yours,

Jim Hedger
SEO Manager,
StepForth Placement Inc.

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This SEO News was posted by Jim Hedger @ 4:24 PM.

Copyright ©2006-2012, The SEO News Blog, StepForth SEO Services
View this Article Only: The Enemy of My Enemy is My Friend :: MSN and Yahoo vs. Google

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IBM Enters the Fray

Written by Jim Hedger and published at 2:30 PM

There was just too much news for our little ol' newsletter this week. We really wanted to include this item but space was limited and the story is still in development. Here's a hint for next week though:

IBM announced last week that its enterprise search engine, WEBFOUNTAIN is almost ready. Webfountain will be used by by businesses to find and contextualize information from anywhere within a corporate or business intranet. The most advanced feature is the contextualization of information, (not to be confused with contextual advertising), that will provide a user with definitions of industry specific terms and phrases as well as finding documents on similar topics for extra research. For more information on Webfountain, please visit the IBM Almaden Research Center at www.almaden.ibm.com/WebFountain

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This SEO News was posted by Jim Hedger @ 2:30 PM.

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Friday, September 12, 2003

Johhny Cash Died Last Night

Written by Jim Hedger and published at 10:12 AM

While this news has little to do with the world of search it does strike a chord deep in my soul... The original man in black, Johnny Cash died last night. Cash, who was both a country legend and, oddly enough, a punk rock legend, was among the first to combine rockabilly and country and pioneered what has become known and loved as cow-punk. The world will be a bit quiter but a bit sadder at his passing.

Bye Johnny.

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This SEO News was posted by Jim Hedger @ 10:12 AM.

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Monday, September 08, 2003

Google Is Five Years Old Today!

Written by Jim Hedger and published at 11:03 AM

Happy Birthday to Google... Happy Birthday to Google... Happy Birthday Dear SearchEngineWePlacedOurTrustandFaithinandNowRulestheWorrrrrlllld....
Happy Birthday to Google.

Five years ago yesterday, Google founders Sergey Brin and Larry Page completed and filed the incorporation documents for a small, garage-based startup search engine known as Google. According to I.T. industry myth, the incorporation was completed in order to enable Brin and Page to cash a $100,000 cheque from Sun Microsystems founder, Andy Bechtolsheim.

Once established, the company grew rapidly to become the largest, freshest and most used information gathering resource the world has ever seen. At age five, Google is not the oldest or most experienced search tool on the block but it is the world's current favourite. Their sixth year will be a fairly challenging period for the staff and management at Google as the search engine war reaches a point of critical mass (likely in spring 2004). In the meantime, HAPPY BIRTHDAY to our friends at Google. Enjoy the day.

For a simple look at Google's history, please visit the Google Timeline.

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This SEO News was posted by Jim Hedger @ 11:03 AM.

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Thursday, September 04, 2003

Counter Googling Your Customers

Written by Jim Hedger and published at 1:59 PM

Two years ago Google became an essential tool for singles looking to check into the background of people they were potentially interested in. A quick Google-check of a new date could help differentiate between princes and psychopaths. Googling friends, co-workers and other acquaintances became a guilty pastime for several Internet users, just as Googling oneself can be an enormous ego boost. It simply stands to reason that savvy business people and salesfolk have taken the tool to another level and are using Google to check out the interests and needs of clients and customers. A hotel in Los Angeles runs every reservation through Google to try to anticipate their guest's needs before they arrive, placing early risers in east-facing rooms and vacationers in west-facing rooms.

Many marketers and salespeople compile a great deal of personal information on their sales-targets including family names, birthdays and personal successes in order to make complementary conversation. Google, which can provide information on just about anyone if used properly, can now be considered the world's largest source for personal information on customers and clients.

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This SEO News was posted by Jim Hedger @ 1:59 PM.

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Overture Gets Injunction Against Google's New Client

Written by Jim Hedger and published at 1:57 PM

The gloves have come off between Overture and Google, (allowing their respective lawyers enough agility to hold on to their pens). Three issues ago we wrote about Google's great fortune in gaining the search account for Europe's largest ISP, T-Online from Overture. It seems that T-Online's multi-year deal with Overture had a back out clause allowing them to dump Overture if Overture was ever bought by a competitor. T-Online considers Yahoo, (soon to be Overture's new owner) a competitor, and cancelled the deal. In reaction, Overture applied for and was granted an injunction against T-Online, preventing them from replacing Overture results with results from Google. Problem is, T-Online had already replaced Overture with Google on August 7th.

While the deal between Yahoo and Overture has not been fully completed, it is expected to be closed sometime in the last quarter of this year. T-Online, on the other hand, claims to have not received the official injunction yet and will not necessarily comply. According to an IDG News article by Gillian Law, a spokesperson for T-Online said, "We have not received any injunction so far. Once an injunction reaches us, it will be given to our legal department for thorough examination."

The #1 spot for the keyword "injunction" costs just $0.16 per click through on Overture though one can be sure the real thing has cost them quite a bit more in the European theatre.

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This SEO News was posted by Jim Hedger @ 1:57 PM.

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Contextual Advertising Shows Poorer Results than Expected

Written by Jim Hedger and published at 1:56 PM

Search engine marketing firms have reported much lower than expected results from contextual advertising campaigns, comparing click-throughs and actual purchases to the numbers shown by banner advertising. For the accountants and business planners at Google and Overture the news couldn't come at a worse time. Both Google and Overture are depending on Contextual Advertising programs as significant revenue sources this year. If the bottom drops out of this emerging market, as it has from the once popular banner advertising market, both search firms could take a pretty large financial hit.

Contextual Advertising is the process of placing ads on websites based on the keywords found on specific pages within the site or based on the keywords entered by the site-user. Probably the most well known example is Google's AdWords/AdSence program that allows advertisers to pay for their ads to appear when certain keywords are entered, and pays website owners for the right to place ads on their websites. Contextual advertising is a relativity new concept and still presents some rather funny results for advertisers. For example, a search for OJ Simpson Jeep Chase brought two context ads, one from a company named "Bulls Balls.Com" which sells the Ultimate Jeep Accessories, and the other from "Stop-Sign.Com", an anti-virus firm. Neither ad has very much to do with a low-speed police chase, an event that was broadcast live to millions of viewers around the world.

Contextual Advertising might still prove to be a winning concept with advertisers and Internet users but several factors need to be improved before the model can be considered successful.

First of all, ads must be relevant to the interests of the Internet user. Like television viewers, most people don't use the medium for the chance to see the commercials but most of us realize that advertising is a necessary cost-covering component for most website owners. Unlike TV viewers however, we don't need to wait for the commercials to change the channel or go to the bathroom.

Next, advertising rates need to come down to meet realistic expectations. StepForth is not recommending contextual advertising opportunities to the majority of our clients as we don't believe this form of marketing will bring a strong enough return to justify the cost and effort. The costs are still absurdly high and, for the most part, the click-throughs are absurdly low.

Lastly, search engines and websites presenting advertising to Internet users need to consider the reason people visit websites, they are looking for information on specific topics. An advertisement for Jeep Accessories is not likely going to be clicked on by someone looking for an account of O. J.'s infamous LA adventure. Given that, a marketing professional is not likely going to spend his or her client's money for an ad that isn't getting the attention it deserves.

The bottom line is that people didn't trust banner ads and don't seem to be showing a great deal of faith in contextual advertising. The truest time for testing is just beginning and Christmas will be a deciding factor.

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This SEO News was posted by Jim Hedger @ 1:56 PM.

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FindWhat.Com purchases MIVA

Written by Jim Hedger and published at 12:06 PM

More interesting developments in the world of SE business...

MIVA, the popular shopping basket system has been purchased by PPC search tool FindWhat.Com. While being a fine PPC search tool, FindWhat.Com has never been a major player on the search engine scene however they are a notable entity. Why would they purchase MIVA?

StepForth staff have two guesses.
-> The first is FindWhat.Com wants to challenge Google's new E-Commerce search tool, Froogle with their own E-Com tool.
-> The second guess has FindWhat.Com bulking itself up to make a more attractive acquisition target for a larger player such as MSN or, even Google itself.

The one thing we are pretty sure of is that this round of mergers and acquisitions is going to continue into 2004.

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This SEO News was posted by Jim Hedger @ 12:06 PM.