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Google answers critics

By Glennys Faulds | Published on 09/23/2008 | 2008 Newsletters |

Google defends Yahoo ad deal

Pay Per Click Search Engines Update #69
___________________________________
23 September 2008

CONTENTS:

1. Google answers critics
2. GenieKnows its way around
3. Search Engine Rap



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1. Google answers critics
===============================================

There's a great deal of skepticism in the advertising community over the proposed Google-Yahoo deal.

Many critics believe that the agreement will raise ad prices.

For example, the World Association of Newspapers, a group
representing 18,000 publications worldwide says "with respect to
paid search ads, the deal can be perceived as an agreement to fix
prices."

According to the group, Google usually charges between 20 and 35
percent more than Yahoo on average. It cites a study which found
that "prices on Yahoo will increase by an average of 22 percent
under the deal."

Now Google's Tim Armstrong, President, Advertising and Commerce,
North America, has come out with his answers to critics.

Attempting to to allay anti-competition worries he said that the
Google/Yahoo agreement will not raise ad prices. According to
Armstrong neither Google nor Yahoo set ad prices, but they
are priced by an auction when an advertiser bids only on "what an
ad is worth to them."

"Ad price is only one part of the story," he said. "A more
important measure for advertisers large and small is the return
on investment of their advertising dollar. The Google-Yahoo
agreement will help advertisers convert more clicks into
customers by showing more relevant ads on Yahoo!, giving
advertisers a better return for every dollar they invest."

http://googlepublicpolicy.blogspot.com/2008/09/facts-about-our-yahoo-ad-deal-and-ad.html

Danny Sullivan points out that the auction argument is a bit
misplaced "given how heavily Google manipulates pricing anyway."
He's ambivalent about whether it's a good deal for the
advertisers or not. He states "There's an excellent chance that
the deal with Google might allow Yahoo the time it needs to
improve itself as a competitor to Google. I also have no doubt
that Google wants that to happen -- that in the Google mindset
that's strange to some, they do want competition (though they'd
rather it be Yahoo). Yahoo's certainly in a much stronger
position than Microsoft to fight Google on the search front."

What do you think? I'd love to hear your thoughts on the deal.
Will the final outcome result in a better choice for advertisers
or will Google simply continue to gain market share at the
expense of its competitors?

===============================================
2. GenieKnows its way around
===============================================

GenieKnows is a Halifax-based search engine that has cleverly
chosen to develop niche-specific portals tailored for distinct
searching communities. At present it provides three verticals,
serving the local search, gaming and health communities.

So far the strategy seems to be working well. Each vertical
provides clearly defined revenue and advertising opportunities to
explore.

GenieKnows continues to work hard to improve its offerings to
advertisers. This month saw the latest release of its local
search engine, GenieKnows Local Search. The newest release
includes an embedded mapping feature, an improved algorithm and
coverage for listings' related websites, as well as an updated
business index using data from Axciom, Localeze, and user
contributed sources.

The embedded mapping feature provided by GenieKnows Local gives
webmasters the ability to simply target and embed a map from any
GenieKnows Local business listing page.

"We wanted to make our maps as easy for webmasters to use as
possible," said Dr. Tony Abou-Assaleh, Director of Research and
Development at GenieKnows.

If you're looking for an innovative and cheaper alternative to
the major search engines it's definitely worth while checking out
what GenieKnows is offering.

You'll get a bonus $50 in advertising credits when you sign up.

http://www.PayPerClickSearchEngines.com/genieknows

===============================================
3. Search Engine Rap
===============================================

If you've got too much time on your hands check out this rap
battle, sent to me by Simon Chemin of ABCSearch.

http://searchenginerapbattle.com/


All the best,
Glennys Faulds

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