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Driving Up The Cost Of Adwords
"Welcome to Google Checkout — a new service that makes online shopping faster, more convenient and more secure" proclaims Googles' new payment system.
But what else will Google checkout do?
It will drive up the cost of Adwords, for one thing. Not necessarily for sellers using Google Checkout, because they will get a discount in the form of lower transaction costs, meaning, in theory, they can bid higher for their ads. The sellers who aren't using Google Checkout won't "qualify" for the "discount".
It will also give Google valuable sales tracking data. From the merchants. And from buyers.
It may also make Yahoo & MSNs offerings more attractive, because they won't have the same price pressure.
Google Checkout is not so much a PayPal killer. It's bigger than that. More of a vehicle to drive and control the sales process end-to-end.
Google Patents & Danny Sullivan
Well there's two big topics today that deserve mention:
- Google recent patent application, and
- Danny Sullivan leaving SEW
Google Recent Patent Application
On August 22 Google applied for a patent titled, "System and method for supporting editorial opinion in the ranking of search results". This patent is a move away from the typical Google-philosophy of "algorithms rule" to a more Yahoo!-esk approach to ranking website which required human intervention to determine the value of specific sites and then rank sites highly based on their associations with the sites given a favorable rank.
This application also alludes to individuals having the ability to play a role in the ranking of website but this will be far into the future as far as this SEO is concerned. Every time Google comes up with a new ranking factor it is quick to be gamed and one can only assume that they are learning from this and be very careful in how the allow human intervention in determining the trust (sound familiar?) of a site.
This seems to *coincidentally* tie into the hiring of Ori Allon and the purchasing of the rights to the Orion algorithm. Methinks Ori had just a little something to do with this.
While patents don't necessarily mean that the engines will be following through they do give a very solid glimpse at the direction they're heading in.
As a note: this patent application will likely make the list of things I make myself read on a monthly basis (yes, I have things I make myself read (and highlight) every month). You can find the application here.
Danny Sullivan Leaves Search Engine Watch
This is BIG news !!! While reading the SiteProNews blog it was brought to my attention by Jim Hedger (if you've been to this blog on even a semi-regular basis you've likely heard him mentioned repeatedly) that Danny Sullivan is leaving Search Engine Watch and will no longer be hosting the Search Engine Strategies Conferences.
While instinct is to say that this is a big blow to the SEO community in general as Danny has been a true voice for the industry as well as an exceptional source of insight into the search engines themselves I have no doubt that we will be hearing from him again down the road.
You can read about the reasons, etc. on Danny's personal blog at http://daggle.com/060829-112950.html.
Why Google Print Ads Didn’t Work… And Why Its Radio Ads Will!
I HAVE ONE WORD TO say about why auctions work. That word is "scarcity." Scarcity's the only reason anyone would enter an auction, and scarcity's the only thing that keeps people in auctions, even after bid prices keep moving up. And scarcity explains why Google Publication ads–its auction-based print ad network–hasn't worked; and why its entrée into radio advertising will be a hit. Auctions, after all, aren't always so fun. In non-auction place markets, sellers deliberate meticulously before the slightest price change; they also need to keep their pricing competitive–and so sellers provide a dual reason why truly runaway price growth is uncommon.
But sellers are behind the scenes in auctions. And so auction prices typically skyrocket in a very short time. That's never an enjoyable scenario for buyers; and so, if they can avoid it, rational shoppers choose not to play whenever they can. To enter into an auction, buyers need to have a real incentive. That incentive is scarcity. If there's something that people really want, and there's no other way to get it than through an auction, then they'll roll up their sleeves and bid. That's why Sotheby's–which has a monopoly or near-monopoly on everything it sells–is able to sell all of its merchandise via auction. It's also why eBay positions itself as a place to find hard-to-find items, or hard-to-find deals: if you could find what you're looking for just anywhere, you wouldn't be sitting through an auction for it on eBay. Based on the scarcity principle, it's surprising that Google didn't foresee the less-than-stellar performance of Google Publication Ads. Print ad space, after all, is quite plentiful; what's more, print pubs can always add pages to meet increased advertising demand. In other words, more advertisers means less scarcity, not more. And since there's no scarcity principle at play in the world of print, advertisers were bound to steer clear of print ad space auctions. (Based on the scarcity principle, Google could have created a highly successful auction marketplace for print, if it had stuck to auctioning off truly coveted real estate–like the inside back cover of magazines.) The fact that Google overlooked the scarcity principle is particularly surprising when you consider the fact that its search auctions–its flagship enterprise–drive increased yield (CPC and effective CPM's) because of the lack of supply. Searchers looking to buy the things people sell are highly valuable; and, since there's a limited number of them in any case, they're also scarce. Marketers understand this, and willingly pay high search-click costs to participate in Google's search auction. If they want the high-quality search traffic, there's no other choice. But even Google's entitled to an occasional mistake, and Google's purchase of dMarc–one of the most venerated ad networks around–proves that they're still the top pros. Radio ad units, after all, are highly limited stuff: there are only so many radio channels; there are only so many hours in the day; and there are even fewer hours during which radios air ads (the rest of the time they're airing programming). Plus, the most valuable advertising times only happen twice daily–during morning and evening rush hour. Since radio advertising is rife with scarce, valuable opportunity, it's a great framework for auction media–making it the perfect next arena for Google. (That same argument, by the way, also applies to television–and it will be interesting to see how long it takes before Google enters that business.) And so with its new radio enterprise, Google's found its new source of scarcity. Which is why I predict big things for Google radio advertising. And, to put my firm's money where my mouth is, I've had Did-it set up its search auction management systems to manage radio ad auctions, as well. For the record, there are those in the industry who aren't so confident just yet. In an e-mail he sent me on the topic, Matt Spiegel, managing director of Resolution Media (an Omnicom Company) wrote: "Looking forward, I think this makes sense for Google and the industry. [But] my immediate question is whether the industry is really ready for this… almost all of Google's relationships are with online/interactive departments–and these are not the same people who are responsible for, or know anything about, buying radio." So depending on who you ask, it's a great idea that's before its time (Spiegel's take), or just a great idea (my approach). We'll have to wait and see who's right. In further columns within this space, I hope to share insights on how Google's radio advertising is going for us–to see if the industry is, or is not, in fact ready for this…
Google heads for the office
Google is making a concerted move beyond search and advertising into the business software market, starting with a set of web programs for email, scheduling and communications, it has said.
The online search leader said it has created a software platform to run basic business activities - based on programs it already offers separately. The move marks a stepped up challenge to rival Microsoft as the software giant prepares to upgrade its Windows and Office franchises.
The free set of web-based programs for small businesses, universities and nonprofit businesses goes by the mouthful Google Apps for Your Domain.
Later this year, Google said it will offer a "paid, premium" version with the option of being ad-free and more administrative control and compliance features to meet the demands of bigger corporations and government agencies. Pricing for this more advanced version is not yet available, it said.
Google will host the applications relieving companies of the need to maintain or install software on individual PCs - support tasks often more costly than software itself.
"If we do it right, we get the best of both worlds - very consumer-friendly software, but also low-cost business applications," said Dave Girouard, general manager of Google's enterprise division, which sells search software to companies.
Individual office workers can sign on to Google Apps - short for applications - through their Web browsers.
Initial apps are Gmail Web e-mail, the Google Talk instant message and web phone-calling service, group scheduling on Google Calendar, and Google Page Creator for web page design.
"It really is intended to be a platform," Girouard said.
"One of the fundamental benefits of the software as service approach is that you can just turn on new features over time." The Writely word processor and Google Spreadsheet are candidates for future inclusion in Google Apps, Girouard said.
SOFTWARE CHALLENGE
Google's main appeal is to consumers of its popular Web search and advertising systems. By packaging a set of software for businesses, Google is responding to demands by corporate network administrators who prefer to manage a standard set of software inside organizations. Many are cracking down on the spread of individual consumer programs within their networks.
Sue Feldman, an analyst with market research firm IDC, said Google Apps moves the company into open competition with Microsoft in the business software market.
Anticipating Google's moves, the world's biggest software maker has responded with Windows "Live" — Web-based software for small business and consumers. But Microsoft's unwillingness to deliver its software until it is "fully baked" gives Google an opening to win adherents to its approach, the analyst said.
"There is simplicity and there is s-i-m-p-l-i-c-i-t-y," Feldman said. "If you are used to using Microsoft Outlook, you may need many more features and you will want to use them whether you are connected to the Internet or offline."
Martin Pyykkonen, an analyst with Global Crown Capital of San Francisco, says Google's bid to host business software may give pause to companies mulling when to upgrade to new versions of Microsoft Windows, Office and Outlook due in the next year.
"For all the complexity of Microsoft software and how long Vista has taken, a lot of corporate executives are going to be wary: Do you update to the complexity of Vista or would you be better off just using something simple like Google Apps?" he said.
Vista, the first major upgrade of Windows in five years, is due out later this year or early next.
IBM, Oracle and SAP AG also are racing to offer their software as web-based services in order to make it easier to use and to cut costs, following the lead of pioneer Salesforce.com. Google's latest move makes them both competitors and potential partners.
Girouard underscored that the Google Apps platform is not designed to replace Microsoft's core software. Many businesses are likely to run Windows and Office programs alongside Google Apps on office workers' computers, he said.
"This platform isn't by any means an alternative to Windows," Girouard said. "We are not really out there to eliminate any applications. We are looking to introduce new ways to solve problems people have been having for years."
"There is a lot of open territory," he said.
Suing Google For Your Own Stupidity
It's an easy way to earn a quarter of a million dollars…if you can actually pull it off. At least that seems to be the thinking of D.C. resident Theresa B. Bradley who filed suit against Google earlier this month for "fraud and misrepresentation, including misrepresentation in commercial advertising, and of "willfull, wanton, fraudulent and malicious" conduct regarding its AdSense product." Oh yeah, she also threw in "misrepresentation in interstate commerce" for good measure.
So what makes this lawsuit worth writing about? Well, mostly the sheer stupidity of it all. You see there are several reasons that Ms. Bradley is suing Google and all of them…well…they're kind of amusing.
1.) She claims her staff spent 100 hours placing and reviewing the AdSense code.
2.) She asked Google to remove certain ads from her site.
3.) Google removed AdSense from her web site.
What's that? You don't think those three points are amusing? Well, let's break it down a little further…
First let's look at complain #1…the fact that her staff spent 100 hours placing and reviewing the code on her site. The site in question, BRAVA Corp. is not only the oddest mish-mash of services and information that I've ever seen, it also appears to consist of about 25-30 pages. Now, I'm not sure what her programmers were doing when they put the code in place, but anyone that has EVER implemented AdSense can tell you that it does not take 100 hours to place it on 25-30 pages. In fact, it doesn't take 10 hours to place it on 25-30 pages. So, something a little fishy is going on there.
Next let's consider point #2…the request to remove certain ads from her site. There's certainly nothing wrong with this request. Google AdSense is actually setup to allow you to block competitors from placing ads on your site. The problem is that Ms. Bradley decided to click on those ads in order to find out if the advertiser was selling a competing product. With that in mind, I'll simply quote the following from the Google AdSense TOS…
Prohibited Uses. You shall not, and shall not authorize or encourage any third party to: (i) directly or indirectly generate queries, Referral Events, or impressions of or clicks on any Ad, Link, Search Result, or Referral Button through any automated, deceptive, fraudulent or other invalid means.
and…
You acknowledge that any attempted participation or violation of any of the foregoing is a material breach of this Agreement and that we may pursue any and all applicable legal and equitable remedies against You, including an immediate suspension of Your account or termination of this Agreement, and the pursuit of all available civil or criminal remedies.
You got that? It's very simple. Don't click on your own ads or Google reserves the right to end their affiliation with you.
That brings us to point #3. Yes, Google AdSense ended their advertising agreement with her and removed the ads from her site. So what? They did this because she not only clicked on the ads on her site, she actually ADMITTED that she clicked on the ads. She's acknowledged that she willfully violated the terms of service that she agreed to when she signed up for the program, yet now she wants to sue for far more money than her site ever would have generated from the AdSense program.
Absolutely ludicrous.
Source: www.searchengineguide.com
Google Launches Enterprise Software Solution
Google launched a free packaged business solution for enterprises today including online chat, email, calendars, and hosting. Called "Gmail for Your Domain" (a ghastly name that is only slightly better referred to as "Google Apps" within the actual admin area) this application package will allow a business owner or administrator to create a separate account per employee. Each Google Apps account comes complete with the following Google applications: Gmail: Google’s email program is the central offering of this set of applications; it acts as the main portal where the Talk and Calendar functions are provided. Each user has 2 gigabytes of email storage complete with some robust email management tools that allow automatic email filtering, POP email access, SPAM management, and contact management. Required Setup Procedure: Requires that you shift all email protocol from your domain (i.e. http://www.stepforth.com/) to Google so that email can be sent and received using your domain (so that your email correctly displays it came from your domain). Google Calendar: Probably the most feature rich application within this entire package, Google Calendar provides users with the ability to share appointments or entire calendars. It also has a basic event management option that allows you to manage RSVP lists and invite associates to meetings. Check out the full Google Calendar feature list here. Google Talk: An instant messaging and voice chat application, Google Talk automatically allows access to the contact list within Gmail making connections to business associates and employees simpler. Here is the official description on Talk from Google: " a downloadable Windows application from Google that enables Gmail users to quickly and easily talk or IM with their friends for free. Google is focused on developing innovative technologies that enhance people's lives, and Google Talk encourages and simplifies instant communication across the web." Required Setup Procedure for Google Calendar and Google Talk: The only requirement is that you prove you are the legitimate owner of the domain you setup your account with. The activation process is simple; just upload a specific html file to your website for Google to verify and voila, both Calendar and Talk are enabled. Google Web Publishing: This is a free hosting and page creation system (Page Creator) that allows you to create and publish your enterprise site. The site is hosted on Google servers and can only be a maximum of 100 pages in size. Required Setup Procedure: You must add a CNAME to your domain management configuration (usually by asking your hosting provider) which will setup a subdomain (i.e. http://site.yoursite.com) that you can upload and administer through Google Apps. Account Administration The account administrator using a central online Dashboard can administer all Google accounts. Within the Dashboard, the administrator can do the following: * setup domain aliases, * setup email catch-all addresses, * create internal email lists (i.e. staff@yoursite.com would go to… list all in-house recipients) * make minor cosmetic (color) customizations to the company sign in page, * customize your Google Apps system with your company logo, * enable or disable contact sharing; which when enabled provides a central contact list that all users will have access to., * create and update multiple user accounts at once by uploading a spreadsheet with username and password information, * centrally configure individual user privileges, alternate email addresses and passwords, * view access, and email quota statistics for each user. My Take on Google Apps I setup an account to see how this new offering works and I think it has some real potential as long as the needs of an organization are basic. I say this because the majority of companies that I know of would not be comfortable switching their vital communication and scheduling systems to an online model that is not under their control. After all, I do not expect there will be anyone to bark at if Google Apps experiences problems; one of the significant minuses of using a free system (never mind one in beta). Additionally, a couple of the applications are definitely in their infancy. For example, Google Calendar doe not offer any synchronization capabilities for handhelds or PC’s, so if you make the switch there is no way (currently) to update your handheld with your Google Calendar schedule. This chink alone is enough to keep me from making the switch. Oh and I must not forget Google Page Creator and the free hosting service; it is, well, pointless in its current state. After all, there is no way to upload a website other than using Page Creator, which is a website-publishing tool in its extreme infancy. I can only assume that the web-publishing facet of Google Apps was included as a frill. Will Websites Hosted on Google Have an Advantage? Perhaps but the advantage is minimal; Google states in the Google Apps help area that new sites within their system can expect to be indexed within "a few hours of publication"; an impressive turnaround. Hosting on Google will also likely lead to faster indexing of updated content. After all, faster updating would be a considerable tease if (make that ‘when’) Google wants to make a bolder step into the web hosting industry and provide more advanced hosting packages. It is truly a brilliant plan, I mean, how could other search engines compete with a rival search engine that merely has to look to its own network to index a sizable portion of the Internet. At any rate, this basic hosted solution has been around for a while so I don’t want to waste your time with information you may already know (here is more info on Page Creator). How Long Will Google Apps Be Free? If you signup during the Beta test of this program you will get use of Google Apps for free indefinitely according to the Google Apps Terms & Conditions but after the Beta Period you "may not" get the benefit of newly added technologies without paying. The following is relevant snippet from the T&C: No Fees . Provided that Google continues to offer the Google Hosted Services to Customer, Google will provide a version of the Google Hosted Services (with substantially the same services as those provided as of the Effective Date) free of charge to Customer indefinitely; provided that such commitment (i) applies only to End User Accounts created during the period when the Google Hosted Services are considered a beta service (the "Beta Period") by Google (such Beta Period determination at Google's sole discretion) and (ii) may not apply to new opt-in services added by Google to the Google Hosted Services in the future. Will There Be a More Advanced Version of Google Apps Soon? "For sake of clarity, Google reserves the right to offer a premium version of the Google Hosted Services for a fee." (Excerpt from Google Apps Terms & Conditions) . In fact, the answer appears to be a resounding yes since Google wants you to notify them if you are interested in a premium version so that they can let you know when it comes available. What Else May Be Coming to Google Apps? I fully expect that following apps will be included in the near future, just click on them to see their formal description at Google: * Google Notepad (more info) Share important notes with your staff and allow them to search notes company-wide. * Personalized Home Page Okay, I cheated here, Google has already posted that this will be coming and they even have a help menu setup for this already. Essentially this option will allow you to customize the home search page for your employees to a limited degree locking certain areas of their Google start page. * Google Reader (more info) This is a free RSS viewer that allows you to subscribe to and label RSS feeds such as The SEO Blog. I believe this application will be added to Google Apps, or at least should, so that Administrators can keep their employees up to date on their own company’s blog as well as their competitors’. In addition, RSS feeds are a great venue for continued education for anyone in a company; I constantly use them to keep up to date on the latest website analytics tutorials and upcoming web technologies. Ultimately, it would be great to enforce the viewing of certain RSS feeds for employees; much like locking areas of their personalized Google home page. * Google Spreadsheets (more info) Create your spreadsheets online and share them across your enterprise. * Google's Writely (more info) Create documents online, share them and publish them to your website. So You Have More Questions About Google Apps? Well! I tried to cover a lot in this article but I likely missed something so here is a direct link to Google’s help/FAQ area for this new service. Source: searchenginenews.com
