Category > Internet

Weakened by Mobile, Desktop Search Advertising Is Declining

admin » 25 March 2014 » In Internet, Tech News » No Comments

In the latest example of mobile phones’ upending of the tech industry, desktop search advertising, perhaps the most lucrative online business, is shrinking.

Advertisers are following consumers to mobile phones, so mobile search advertising is climbing as desktop search advertising shrinks. Yet advertisers are still paying about a third of the price for mobile ads that they do for desktop ads, so the decline in desktop ad spending is a financial risk for search companies including Google, far and away the leader in search.

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Over all, desktop search ad spending will drop $1.4 billion this year, a decrease of 9.4 percent from last year, according to estimates from eMarketer. (It fell last year for the first time, but only 0.8 percent.) Mobile search ad spending, meanwhile, will more than make up the difference, increasing $4.07 billion, or 82.3 percent.

Google has taken pains to describe mobile search as additional search activity that is not poaching time from desktop search. Mobile searches spike, it says, during the lunch hour and evenings, when people are likely to be away from their desks.

Yet the numbers tell a different story — as anyone who has searched on a phone while a laptop sits inches away can attest. Either desktop search is losing popularity to mobile search, or advertisers believe it is.

At Google, desktop search ad revenue will decrease $770 million this year, while mobile search ad revenue will increase $1.76 billion, eMarketer said.

The gap has closed in an astonishingly short time, even for the fast-moving technology industry. This year, mobile search revenue at Google — which has 95 percent market share in mobile search, according to StatCounter — is on track to account for about one-third of Google’s total search revenue. That would have been unthinkable only a couple of years ago, when Google’s business was under threat from mobile.

Since then, the company has tried to rethink mobile advertising. For instance, Google combined its desktop and mobile ad departments into one and now sells the two types of ads as a single package to advertisers. It also introduced new tools for advertisers to begin to solve the problem of tracking the effectiveness of mobile advertising. One tracks consumers across devices and tells marketers whether a consumer makes a purchase on a computer after researching an item on a phone.

“The fundamental tenet is not to speak about mobile, mobile, mobile,” Nikesh Arora, Google’s chief business officer, said on a conference call with analysts in January.

“People aren’t distinguishing what they’re doing on different screens, so advertisers should be more agnostic about where they reach the user,” he said.

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Google AdWords: Introducing Enhanced Campaigns

admin » 11 February 2013 » In Google, Internet, Marketing, Tech News, Youtube » No Comments

Google AdWords: Introducing Enhanced Campaigns

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Bill Clinton at CES 2013: Don’t Take Tech for Granted

admin » 09 January 2013 » In Internet, Tech News » No Comments

Bill Clinton at CES 2013: Don’t Take Tech for Granted

LAS VEGAS — Former U.S. President Bill Clinton joined Samsung on stage at 2013 International CES in Las Vegas to discuss the power of the Internet and the need to grow its infrastructure in the U.S.

President Clinton — the brand ambassador for the Samsung Hope for Children program, which will provide education to 2.5 million children — told attendees “technology can help overcome challenges that are not even economic.”

“I’ve been backstage looking at all the new devices, and I was reminded that when I was president, the average cellphone weighed 5 pounds,” Clinton said. “The day I took the Oath of Office, a grand total of 50 sites were on the Internet. More have been added since I started talking.”

But he noted South Korea is now number one in the world for computer download speeds, and the U.S. has fallen to number 15.

“Our speeds are one-fourth of theirs, and we have fallen off the map,” Clinton said. “Think about all the basic things we are taking for granted. If the screen went dark or the microphone failed … if you get bored from my speech, you can get water — but I have spent time in part of the world where you can’t do that. Mobile technology is doing so much now to lift the poor.”

He said he is impressed by how much technology is affecting our lives, and how it can be used for the future. Although he said he no longer drives, someone recently told him to sit in his Ford car, and told its built-in infotainment system to provide directions to the nearest Chinese restaurant.

“I got a map about how to drive there, which I didn’t know before,” he said. “I keep thinking about this in terms of the future. If you look at what the Arab Spring did to use social networks … and how social media has been used among my wife’s leadership … there is a lot we can do to overcome challenges.”

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Facebook Doubles Release Speed, Will Roll New Code Twice A Day

admin » 03 August 2012 » In Internet, Marketing, Social Media » No Comments

Facebook Doubles Release Speed

Facebook announced in a blog post today that they are doubling the site’s release speed, rolling Facebook onto new code twice per day.

“Last week, in conjunction with the opening of our engineering office in London, we decided to double the release speed of facebook.com and indeed “ship often,” release engineering manager Chuck Rossi writes.

First, there will be a push driven by Facebook’s New York office, followed by the social network’s regular daily push from the California team. Rossi says the developers are producing six times the amount of code per week as Facebook was in 2008, when he joined.

“It’s exciting and I think it crushes what anyone else of our size and impact is doing. Ship early and ship twice as often,” Rossi writes to close the post, firing a shot at Facebook’s competitors.

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Google’s Schmidt: The Future Is Mobile, Local, Social

admin » 12 March 2012 » In Google, Internet, Marketing, Tech News » No Comments

Google’s Schmidt: The Future Is Mobile, Local, Social

Google Executive Chairman and former CEO Eric Schmidt said technology is at a crossroads and the next game changing shift will comprise mobile, local and social technologies and will create an environment that unfolds in true real-time.

In an interview keynote session at Dreamforce 2011, Salesforce Chairman and CEO Marc Benioff asked Schmidt to detail the industry’s past, where it is now, and where it will be in the future, and according to Schmidt, one thing is clear: Standing still just won’t cut it.

Schmidt recalled his days at Sun when nearly two decades ago young innovators were developing systems that would now be called cloud computing.

“We were right 15 years ago, we just had to wait for the technology to catch up,” he said, reflecting back on the network computer of yesteryear.

Now light, less complicated systems are creating environments where enterprises no longer have to spend millions of dollars and wait several years of development cycles for innovation to take hold. New cloud and mobile technologies, he said, have “wiped out” that idea.

Schmidt said technology evolved in four phases. First was basic connectivity, followed by connection and publishing. Later, the application phase took hold, and now the industry is entrenched in the social and personal phase of technology.

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Facebook Denies Looking At Your Text Messages

admin » 27 February 2012 » In Internet, Social Media, Tech News » No Comments

Facebook Denies Looking At Your Text Messages

Facebook denied a report Monday from the Sunday Times in London that the company is reading text messages sent by users that have installed its popular app on their mobile phones.

“The Sunday Times has done some creative conspiracy theorizing but the suggestion that we’re secretly reading people’s texts is ridiculous,” said Iian Mackenzie, Facebook’s head of European communications in a post entitled “Today’s Bad Journalism.”

An earlier report in the Sunday Times suggested that Facebook was ogling users’ private texts based on the Facebook for Android app’s permissions. Those permissions seem to allow the Facebook app to view text messages stored on the installer’s phone.

However, Facebook has now strongly denied that it reads users’ text messages. Instead, Facebook says, the text-reading permission was put into place in anticipation of a text-integration feature currently being tested by the company.

“. . . the permission is clearly disclosed on the app page in the Android marketplace and is in anticipation of new features that enable users to integrate Facebook features with their texts,” said Mackenzie. “However, other than some very limited testing, we haven’t launched anything so we’re not using the permission. If we do, it will be obvious to users what’s happening. We’ll keep you posted on our progress.”

Mackenzie suggested that concerned users run a test to see exactly what data is being exchanged between a phone running the Facebook app and the company’s servers. He also made sure to tell readers that his post shouldn’t be interpreted as an announcement of a new messenger service.

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State of Internet Marketing: 16 Predictions for 2012 by Bruce Clay

admin » 27 January 2012 » In Internet, Social Media, Tech News » No Comments

State of Internet Marketing: 16 Predictions for 2012 by Bruce Clay

Another whirlwind year in Web marketing is behind us, and the one ahead seems just as exciting. The big news of 2011 emerged as Google worked to make results even more relevant and useful to users, which eventually led to the Panda algorithm update that targeted low-quality sites in the results pages. Then of course, big strides were made by major search engines like Bing and Google to make social search more of the norm leading to perhaps the biggest news in social and personalized search, just announced this month by Google with its Search plus Your World feature.

In keeping with our annual tradition here at Bruce Clay, Inc., I’d like to share with you my forecast of the search climate in 2012:

1. Budgets will be larger than expected, although not crazy, and spending will be rapid. I expect that spending will ramp quickly early in 2012, then flatten during the middle of the year, then grow in the fourth quarter for a yearly growth of 13.73194 percent. Top firms will be busy and by mid-year many will stop accepting clients. There will be significant early excitement as online leads grow significantly.

2. Internet marketing optimization (IMO, the umbrella for SEO, PPC, analytics, social, conversion and information architecture) is finally recognized as the new online marketing battleground. Specialists such as SEOs are forced to learn about all other disciplines as projects require participants to know more about more about the other IMO disciplines.

3. Conferences see massive popularity as companies fight to learn the Internet marketing optimization disciplines. As the IMO disciplines become more competitive, training will become a significant factor in businesses wanting a slice of the online pie. Training demand grows rapidly, and the best online and classroom courses will be exceptionally popular. Training classes at conferences will fill early and will often be the justification for the conference.

4. Google+ will collect data that assists Google search in providing unique and exceptionally targeted results. Personalization of search results (ads, organic and local) is essentially accomplished.

5. The cost of AdWords ads doubles, but the ROI resulting from personalization targeting justifies it. Personalization makes it work. Google releases a new version of AdWords management tools combining demographic targeting to compete with that found in Facebook.

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Welcome To The Future Of Media – Online Growing

admin » 13 January 2012 » In Internet, Social Media, Tech News » No Comments

Welcome To The Future Of Media – Online Growing

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Welcome To The Future Of Media – “Distribution” is bigger…

admin » 04 January 2012 » In Internet, Marketing, Social Media, Tech News, Uncategorized » No Comments

Welcome To The Future Of Media – “Distribution” is bigger…

Welcome To The Future Of Media - Distribution is bigger...

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Facebook VS Google

admin » 31 December 2011 » In Google, Internet, Search Engines, Social Media, Tech News » No Comments

Facebook VS Google

facebook vs google

For the past couple of years, one meme has grown ever louder:

Facebook is killing Google.

Facebook is taking over the Internet, this story goes. Facebook now has ~800 million global users, half of whom log in every day. Facebook now accounts for something like a third of all pageviews in the U.S. Google is miles behind in social, despite the huge numbers for Google +. Facebook consumes an astonishing percentage of time spent online.

And so on.

And most importantly for the Facebook-is-killing-Google meme:

Facebook (and Twitter) are now the means by which many people share content online.

And all of that is true.

But none of it means that Facebook is killing Google.

To get a quick reality check on whether Facebook is killing Google, all you need to do is glance at these two numbers:

$40 Billion
$4 Billion

What are those two numbers?

Those are the approximate revenue numbers for 2011 for Google and Facebook respectively.

Google’s 2011 revenue will be about $40 billion, Facebook’s will be about $4 billion. Google, in other words, is 10-times Facebook’s size.

But, but, but, you say…

Google is still 10-times Facebook’s size because Facebook is just in the early stages of generating revenue. When Facebook gets its revenue engines really cranking, it will blow past Google in no time.

No, it won’t. Not unless it figures out a way to insert itself between consumers who want to buy specific products and companies that make and sell those specific products, the way Google has.

If Facebook builds a products and services search engine, for example, and somehow captures a huge amount of Google’s global search share then, yes, Facebook will in fact be “killing” Google.

Until then, all the “time spent” and “pageviews” and “users” metrics are pretty much irrelevant.

Why?

Because as the current revenue levels for both companies are demonstrating, search is a vastly better advertising product than social networking.

Vastly better.

So much better, in fact, that, when it comes to head-to-head business competition, the two companies aren’t yet even in the same league.

And why is search such a better business than social networking?

Because search is the best advertising product in the history of the world.

Social networking, meanwhile, is a relatively lousy advertising product (relatively).

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