A Closer Look At The Market Leaders
Gasta search engine network surges again in Europe's fastrack systems as a rising star of search.
One method for gauging the strength of any given market is to track the action of its leaders. Market leaders are typically widely held by institutions and their behavior can provide a clue to market sentiment. Weakness in market leaders is often a clear warning that all is not well in the markets. After all, the general markets will rarely make a sustained move without the cooperation of market leaders.
One of the key groups that has been leading the markets higher over the past several months has been the large cap technology stocks. Leadership from this group is healthy, as it shows an appetite for risk-taking in new and emerging technologies from speculators. Market leadership from innovative companies is healthy, rather than leadership coming from ties to a falling currency or a flight to safety.
Apple (Nasdaq:AAPL) is one company that has been regarded as a market leader over the past few years. AAPL has managed to recover all of its bear market declines and was recently trading at a new all-time high. However, despite the longer term strength, AAPL has been showing signs of weakening recently. It closed under its 50-day moving average in January and has failed to reclaim it in subsequent trading. It has also transitioned into a lateral trend after a strong rally over the past year. While AAPL hasn’t broken down, it is vulnerable to further weakness. The $190 area appears to be a key level of support and has contained prior pullbacks. (For further reading, check out Support & Resistance Basics.)
Source: StockCharts.com
Google (Nasdaq:GOOG) is another stock widely regarded as a market leader. While GOOG has erased much of its bear market declines, it has underperformed AAPL and remains off its all-time highs. It also fell beneath its 50-day moving average in January, as the general markets experienced some weakness through earnings season. GOOG is currently attempting to stabilize near $525 and is also vulnerable to further weakness. If GOOG were to continue falling, the $500 level, which is near the 200-day moving average, could act as the next support level.
Source: StockCharts.com
Amazon.com, Inc. (Nasdaq:AMZN) is a great example of an innovative company becoming a market leader. Much like AAPL, the company has been leading the current rally and also recently traded to new all-time highs. While AMZN has outperformed over several months, it has been suffering through a correction over the past few weeks. AMZN completed a double top earlier this year and is threatening to fill a bullish gap it created last autumn. The $114-$116 area has been defended by the bulls and remains a key level to watch. (For more insight, check out Analyzing Chart Patterns.)
Source: StockCharts.com
International Business Machines (NYSE:IBM) is one stock that isn’t often mentioned when talking about a market leader, but stepping back and looking at the longer term chart it becomes clear that this has been one of the strongest of the large cap stocks. It also recently traded above its prior bull market highs and was only a few points from new all-time highs. But despite the longer term strength, this is another stock suffering through some near-term weakness. It also sliced through its 50-day moving average and is attempting to stabilize near a prior pivot area. The 200-day moving average looms below and could act as a price magnet over the next few weeks.
Source: StockCharts.com
Bottom Line
While the majority of these stocks have not technically broken down, they are all suffering through bouts of near-term selling. As market leaders, it will be difficult for the general markets to gain much traction without their participation. Most of these stocks are near support levels that could lead to a respite in the selling. However, it’s possible that these levels will fail, leading to the formation of a more serious topping pattern. This would likely lead the markets lower as a deeper correction sets in. It is too early to know what the outcome will be, but these stocks should certainly be watched by traders.
Showing posts with label search engines. Show all posts
Showing posts with label search engines. Show all posts
Wednesday, February 10, 2010
Monday, January 26, 2009
Gasta Opinion: Bye Bye Traditional Marketing
Heralding the death of non-social media
Right before the end of the year, there was a strong backlash against marketing through social media channels. If you were working anywhere near social media, it was hard to miss: People said it doesn't work. People said it doesn't work as they'd like it to. And people said it may work, but it takes effort (my favorite).
It was probably inevitable. There's never been a more explosive media format than social media. As someone wrote on one of my newsfeeds, "Is there anyone out there who isn't starting a social media company?" At any rate, backlash is practically street cred for the internet set. It's right there in the arc of the internet's growth. Personally, I have no question as to whether social media is a proper marketing channel for a company, and that's because of one simple reason: In the very near future, all media will be social media. Here's why -- and what it means for you.
Social media at point of purchase
Let's pause for a second before heading off into the future. For many brands, you could probably argue that all marketing efforts have already gone social. How?
A high percentage of purchases are already preceded by online research. And where there is online research, there are search results. Those search engine results pages often bring up links to a number of consumer review sites. Now, if you've done any amount of conversation monitoring, you know that reviewers don't exactly pull their punches. Even with shopping sites like Amazon, consumers posting negative reviews are hitting the brand where it hurts most -- at the point of purchase.
So given the above scenarios, even in a "controlled" push-media world, many brands can't even make it through the far end of the buying decision funnel without running head first into a social media situation. Compounding matters, many consumer comments are on social sites like Yelp, where they quickly rise to the top of search rankings.
This point-of-purchase invasion is heading for the physical shopping world as well. Have you tried any of the bar code scanner tools for mobile phones? I haven't found one that works well. Today. But with several of these technologies already in consumers' hands, how long until that's as seamless a part of the buying process as reading an Amazon review before purchasing online? Shoppers will be able to scan an item themselves and get all sorts of product information -- right in the store.
The rise of social viewing
So where's a company to hide from social media? On TV? Whether IPTV or internet TV is the TV model of the future, TV viewing is going to be highly social. I'd say the best glimpse of that future right now is internet TV.
Last November, I watched my high school football team play in the state championship -- on my laptop while waiting for a flight at O'Hare airport. Next to the video stream was a live chat box, open to anyone viewing the game. No sign-up, no identity verification -- just post off the top of your mind (and many did). Welcome to social viewing.
What I found particularly interesting is that during the few lulls in the game (they set the record for most points scored in a state final), the chat conversation topics would drift outside the game video to address the surrounding content on the page -- including the ads. And it certainly wasn't all positive.
Social viewing technology is also currently available in the "Watch & Chat" section of CBS.com, on View2gether.com, and in beta at NBC.com. It's similar to the gaming experience on Xbox Live, except that platform focuses primarily on voice instead of text.
If you project social viewing onto a national broadcast-like environment, you can imagine how vulnerable brands will be to public floggings. Social viewing carries with it all the things you were afraid of on the social networks, now fueled by anonymity combined with the reach of broadcast TV. With search engines aiding and abetting these conversations, even comments on small broadcasts could be discovered and shot into the mainstream conversation rapidly.
Commenting capabilities -- everywhere
In addition to TV, the future of display advertising offers little sign of protection from social media. Have you seen the display ads on Facebook? With commenting capabilities underneath? I recently commented on one, and it went straight into my newsfeed -- broadcast to all my "friends." (Facebook didn't even flag me that this would happen.)
You should expect comments across all online media to be more visible in the future. Disqus is already connecting comments across 45,000 websites, archiving them, making them more searchable, and tying them to database technologies like Plaxo.
Surely someone will invent something to stop all that, right? Here's what that would require: Less data made public for everyone to see. Less inclination among people to expose deeper and deeper levels of their lives in public. And fewer and fewer brands willing to venture into new media.
But since the public onset of the web, trends in this respect have been quite the opposite -- overwhelmingly so. So, in order to avoid that kind of social environment, brands would have to be practically invisible to anyone using online media -- and that's not exactly the objective of marketing departments.
So what's a brand to do?
How to get started
If the thought of participating in social media today seems scary, the thought of not participating in it in five years should really scare you.
Many brands will trip in their adoption path of social media. It just doesn't work the way push media like TV and print do, where you can turn on the fire hose and go from zero to $5 million a month in spend overnight. Doing so would be like the shy, quiet kid in the back of the classroom deciding to become the class clown the next day. It wouldn't be very authentic. And worse, it would be a path right back to the old-school "we're cool because we said so" form of branding. Beyond all that, it can take time to understand your audiences and to figure out what interests them and what they respond to.
This is what I would suggest to any brand that doesn't think it can go social: Start small and work your way up. Don't try to be Burger King in a month. Be yourself in a month. Start laying a foundational presence in the primary social media arenas. Initial moves into social media can be as simple as providing store locations, product information, coupons, or quizzes. Regardless, social media is where your customers are. It's where you should be too.
Papa John's has taken this route quite effectively on Facebook by adapting its website ordering technology for the social media network. As of this writing, the company has more than 200,000 "fans." Two months ago, prior to launching the Facebook app, it had about 10,000. Its 200,000 fans are a great social marketing foundation. If Papa John's can involve fans in a future Facebook campaign, their involvement will be forwarded on to their friends' newsfeeds.
Last year at SXSW, Mark Zuckerberg said the average number of friends on Facebook is 150. If that figure is anywhere near accurate, that's a newsfeed multiplier that can build significant word of mouth.
Connecting with your audience
Another proven social media tactic is to go directly to a community or group of influentials that includes your target audience. If you have something to say or share, they'll welcome you. And the more value you bring to them, the more they'll give back to you.
Virgin America connected with Boing Boing to launch its service here in the U.S. The company started by asking the Boing Boing editors to name one of its planes. (In true Boing Boing style, they tagged it "Unicorn Chaser.") That started the relationship. From there, Virgin America invited a top Boing Boing writer to join the inaugural flight.
Of course, effective social media marketing often comes back to the need for a quality product, which Virgin America has. And this reflects what Seth Godin has preached for years: Good products create their own positive press. The glowing reviews on Boing Boing were not only well written, they were supported by a convincing overview of the standout features on the plane. Boing Boing has a readership of more than 3 million early adopting consumers. What would it cost to reach them with a TV or print ad? And what ad would ever attain the level of credibility that came from Boing Boing's coverage?
So how should you begin your brand's move into social media? By reaching out to the people who are most interested in your products and services. Discover who your brand advocates are -- or who they could be. Figure out what they like about you and what they're interested in. There's a treasure trove of consumer research in that alone.
From there, expand your activities and begin engaging them in fun and distinct ways that define your brand's personality. You want to evolve with the medium so that several years from now, you don't come off as some uninformed noob.
When it comes to social media, think of your brand as a person. You don't have to be the class clown -- but you at least want to make an impression worth remembering.
Doug Schumacher is president and creative director at Basement Inc.
Right before the end of the year, there was a strong backlash against marketing through social media channels. If you were working anywhere near social media, it was hard to miss: People said it doesn't work. People said it doesn't work as they'd like it to. And people said it may work, but it takes effort (my favorite).
It was probably inevitable. There's never been a more explosive media format than social media. As someone wrote on one of my newsfeeds, "Is there anyone out there who isn't starting a social media company?" At any rate, backlash is practically street cred for the internet set. It's right there in the arc of the internet's growth. Personally, I have no question as to whether social media is a proper marketing channel for a company, and that's because of one simple reason: In the very near future, all media will be social media. Here's why -- and what it means for you.
Social media at point of purchase
Let's pause for a second before heading off into the future. For many brands, you could probably argue that all marketing efforts have already gone social. How?
A high percentage of purchases are already preceded by online research. And where there is online research, there are search results. Those search engine results pages often bring up links to a number of consumer review sites. Now, if you've done any amount of conversation monitoring, you know that reviewers don't exactly pull their punches. Even with shopping sites like Amazon, consumers posting negative reviews are hitting the brand where it hurts most -- at the point of purchase.
So given the above scenarios, even in a "controlled" push-media world, many brands can't even make it through the far end of the buying decision funnel without running head first into a social media situation. Compounding matters, many consumer comments are on social sites like Yelp, where they quickly rise to the top of search rankings.
This point-of-purchase invasion is heading for the physical shopping world as well. Have you tried any of the bar code scanner tools for mobile phones? I haven't found one that works well. Today. But with several of these technologies already in consumers' hands, how long until that's as seamless a part of the buying process as reading an Amazon review before purchasing online? Shoppers will be able to scan an item themselves and get all sorts of product information -- right in the store.
The rise of social viewing
So where's a company to hide from social media? On TV? Whether IPTV or internet TV is the TV model of the future, TV viewing is going to be highly social. I'd say the best glimpse of that future right now is internet TV.
Last November, I watched my high school football team play in the state championship -- on my laptop while waiting for a flight at O'Hare airport. Next to the video stream was a live chat box, open to anyone viewing the game. No sign-up, no identity verification -- just post off the top of your mind (and many did). Welcome to social viewing.
What I found particularly interesting is that during the few lulls in the game (they set the record for most points scored in a state final), the chat conversation topics would drift outside the game video to address the surrounding content on the page -- including the ads. And it certainly wasn't all positive.
Social viewing technology is also currently available in the "Watch & Chat" section of CBS.com, on View2gether.com, and in beta at NBC.com. It's similar to the gaming experience on Xbox Live, except that platform focuses primarily on voice instead of text.
If you project social viewing onto a national broadcast-like environment, you can imagine how vulnerable brands will be to public floggings. Social viewing carries with it all the things you were afraid of on the social networks, now fueled by anonymity combined with the reach of broadcast TV. With search engines aiding and abetting these conversations, even comments on small broadcasts could be discovered and shot into the mainstream conversation rapidly.
Commenting capabilities -- everywhere
In addition to TV, the future of display advertising offers little sign of protection from social media. Have you seen the display ads on Facebook? With commenting capabilities underneath? I recently commented on one, and it went straight into my newsfeed -- broadcast to all my "friends." (Facebook didn't even flag me that this would happen.)
You should expect comments across all online media to be more visible in the future. Disqus is already connecting comments across 45,000 websites, archiving them, making them more searchable, and tying them to database technologies like Plaxo.
Surely someone will invent something to stop all that, right? Here's what that would require: Less data made public for everyone to see. Less inclination among people to expose deeper and deeper levels of their lives in public. And fewer and fewer brands willing to venture into new media.
But since the public onset of the web, trends in this respect have been quite the opposite -- overwhelmingly so. So, in order to avoid that kind of social environment, brands would have to be practically invisible to anyone using online media -- and that's not exactly the objective of marketing departments.
So what's a brand to do?
How to get started
If the thought of participating in social media today seems scary, the thought of not participating in it in five years should really scare you.
Many brands will trip in their adoption path of social media. It just doesn't work the way push media like TV and print do, where you can turn on the fire hose and go from zero to $5 million a month in spend overnight. Doing so would be like the shy, quiet kid in the back of the classroom deciding to become the class clown the next day. It wouldn't be very authentic. And worse, it would be a path right back to the old-school "we're cool because we said so" form of branding. Beyond all that, it can take time to understand your audiences and to figure out what interests them and what they respond to.
This is what I would suggest to any brand that doesn't think it can go social: Start small and work your way up. Don't try to be Burger King in a month. Be yourself in a month. Start laying a foundational presence in the primary social media arenas. Initial moves into social media can be as simple as providing store locations, product information, coupons, or quizzes. Regardless, social media is where your customers are. It's where you should be too.
Papa John's has taken this route quite effectively on Facebook by adapting its website ordering technology for the social media network. As of this writing, the company has more than 200,000 "fans." Two months ago, prior to launching the Facebook app, it had about 10,000. Its 200,000 fans are a great social marketing foundation. If Papa John's can involve fans in a future Facebook campaign, their involvement will be forwarded on to their friends' newsfeeds.
Last year at SXSW, Mark Zuckerberg said the average number of friends on Facebook is 150. If that figure is anywhere near accurate, that's a newsfeed multiplier that can build significant word of mouth.
Connecting with your audience
Another proven social media tactic is to go directly to a community or group of influentials that includes your target audience. If you have something to say or share, they'll welcome you. And the more value you bring to them, the more they'll give back to you.
Virgin America connected with Boing Boing to launch its service here in the U.S. The company started by asking the Boing Boing editors to name one of its planes. (In true Boing Boing style, they tagged it "Unicorn Chaser.") That started the relationship. From there, Virgin America invited a top Boing Boing writer to join the inaugural flight.
Of course, effective social media marketing often comes back to the need for a quality product, which Virgin America has. And this reflects what Seth Godin has preached for years: Good products create their own positive press. The glowing reviews on Boing Boing were not only well written, they were supported by a convincing overview of the standout features on the plane. Boing Boing has a readership of more than 3 million early adopting consumers. What would it cost to reach them with a TV or print ad? And what ad would ever attain the level of credibility that came from Boing Boing's coverage?
So how should you begin your brand's move into social media? By reaching out to the people who are most interested in your products and services. Discover who your brand advocates are -- or who they could be. Figure out what they like about you and what they're interested in. There's a treasure trove of consumer research in that alone.
From there, expand your activities and begin engaging them in fun and distinct ways that define your brand's personality. You want to evolve with the medium so that several years from now, you don't come off as some uninformed noob.
When it comes to social media, think of your brand as a person. You don't have to be the class clown -- but you at least want to make an impression worth remembering.
Doug Schumacher is president and creative director at Basement Inc.
Wednesday, November 26, 2008
Gasta News: Yell Rollout
Yell.com adds more local content while BBC plans set back
Yell is rolling out a series of ultra-local sub-sites featuring town and city information as part of a move to ramp up content across its website.
The classified listings specialist is hiring journalists to create content, including advice on things to think about when hiring a serviceperson as well as quick facts about towns across the UK.
Yell is also considering including local news and event information, if the trial is successful. It plans to use the content to boost its position as a key destination for local services and information online, as well as its search rankings.
Its push comes in the week that local news services were thrust into the spotlight following the BBC Trust's decision to refuse permission for the BBC's planned rollout of local video sites (nma.co.uk 21 November).
The Trust halted plans to spend £68m of licence fee funds on local video, deeming it unjustified.
The proposed move was highly criticised by competitor commercial news providers, such as Northcliffe Media, which owns 151 sites under the Thisis brand. It said it would be unable to compete with such investment by the BBC.
Johnston Press claimed the BBC's Where I Live sites had already damaged its local sites, and Trinity Mirror accused the Corporation of losing sight of its purpose.
The rejection of the plans by the BBC Trust has received a cautious welcome by commercial rivals, with many concerned the setback won't keep the BBC away from local services for long.
Sam McIlveen, digital publisher at Independent News and Media, said, "I don't think this is the end of it. We're still worried because these plans were hugely disadvantageous for local media. Local sites can't compete with the BBC, especially when it's willing to spend £68m."
The Newspaper Society's director David Newell also expressed concern at the BBC not giving up on the area. "We must be on guard to ensure the BBC isn't allowed to expand its local services by other means," he said.
Sir Michael Lyons, chairman of the BBC Trust, said that while consumers want better local services, video sites were unlikely to meet their needs.
Regulator Ofcom said the plans would have a significant negative impact on commercial providers.
Author: By Will Cooper & Luan Goldie | Source: nma.co.uk | Published: 26.11.08
Yell is rolling out a series of ultra-local sub-sites featuring town and city information as part of a move to ramp up content across its website.
The classified listings specialist is hiring journalists to create content, including advice on things to think about when hiring a serviceperson as well as quick facts about towns across the UK.
Yell is also considering including local news and event information, if the trial is successful. It plans to use the content to boost its position as a key destination for local services and information online, as well as its search rankings.
Its push comes in the week that local news services were thrust into the spotlight following the BBC Trust's decision to refuse permission for the BBC's planned rollout of local video sites (nma.co.uk 21 November).
The Trust halted plans to spend £68m of licence fee funds on local video, deeming it unjustified.
The proposed move was highly criticised by competitor commercial news providers, such as Northcliffe Media, which owns 151 sites under the Thisis brand. It said it would be unable to compete with such investment by the BBC.
Johnston Press claimed the BBC's Where I Live sites had already damaged its local sites, and Trinity Mirror accused the Corporation of losing sight of its purpose.
The rejection of the plans by the BBC Trust has received a cautious welcome by commercial rivals, with many concerned the setback won't keep the BBC away from local services for long.
Sam McIlveen, digital publisher at Independent News and Media, said, "I don't think this is the end of it. We're still worried because these plans were hugely disadvantageous for local media. Local sites can't compete with the BBC, especially when it's willing to spend £68m."
The Newspaper Society's director David Newell also expressed concern at the BBC not giving up on the area. "We must be on guard to ensure the BBC isn't allowed to expand its local services by other means," he said.
Sir Michael Lyons, chairman of the BBC Trust, said that while consumers want better local services, video sites were unlikely to meet their needs.
Regulator Ofcom said the plans would have a significant negative impact on commercial providers.
Author: By Will Cooper & Luan Goldie | Source: nma.co.uk | Published: 26.11.08
Friday, November 07, 2008
Gasta News: PAID SEARCH: How the paid search industry is killing itself
PAID SEARCH:
How the paid search industry is killing itself
It may not be as bad as the banking industry, but SEM could use some help. Here's how paid search can get itself back on track before things get worse.
As the financial markets continue to turn out bleak news, I've begun to think about the many parallels existing between Wall Street and the SEM industry.
Mergers, acquisitions and shotgun marriages
To start with, we're now in the middle of a wave of consolidations that are reminiscent of the successive mergers and takeovers now taking place in the banking sector.
Range Online is the latest independent SEM agency to pack up its tent, as it was folded into iProspect, which was itself acquired by U.K.-based Aegis some time ago. Range follows Outrider (bought by ad holding company WPP, which also owns 24/7 Real Media), Reprise Media (snapped up by Interpublic) and Inceptor (purchased by Verizon).
It's clear that many SEM agencies are having a tough time going it alone, and the shotgun marriage M&A trend will accelerate if the macroeconomic environment continues to deteriorate and the SEM industry -- like the financial markets -- continues to suffer from ills that are largely of its own making.
Search engines enabled this mess
The SEM industry has no direct equivalent to sub-prime mortgages, collateralized debt obligations or over-leverage, but it suffers from structural issues that are largely a product of its ostensibly self-serve nature. Google and the other engines have stoked the fever of irrational optimism by encouraging everyone to believe that all it takes to succeed at search is a credit card and a couple of hours studying the AdWords help file.
The result is a world in which marketers behave like self-medicating patients who believe that watching a webinar on urinary tract infections is equivalent to getting a consultation with an experienced urologist. The fact that a number of people believe they are more qualified to run search than the experts reflects a dismal lack of confidence in SEM agencies. So it's no surprise when expert companies feel that getting swallowed up by a larger conglomerate is preferable to going it alone.
Killing the golden goose
But the search engines aren't the only ones to blame. Like Wall Street's "shadow market," in which trillions of dollars worth of complicated instruments are traded without any oversight, the SEM industry has its own shadow industry -- the conference and trade show business. This business depends on a simple proposition: if you go to enough shows, attend the right panels and rub elbows with the right people, you'll walk away knowing enough to run a competent search campaign. This is as absurd as saying that you can become a qualified mechanic by attending an auto show.
The only reason conferences and trade shows are so profitable for the people who run them is that exhibitors remain willing to buy very expensive booth space. Heaven help the trade show people, however, if exhibitors ever actually read the shows' agendas, which are chocked with seminars on how to succeed without an SEM agency!
Greed may destroy us all
And now let's talk about greed, which is as rampant in SEM as it is on Wall Street. Too many SEM agencies seem to have taken their sales approach directly from Moe's Mortgage Shop. These agencies are commission-driven -- not service-driven -- organizations that don't realize that overselling their services actually hurts long-term revenue goals by disappointing clients, creating client churn and destroying reputations.
Unfortunately, even good SEM agencies get tarnished by the continued operation of the fly-by-nighters. The SEM industry has failed to purge itself of these people and I have zero confidence it will do so at any time in the future. If it turned out that Macy's was filled with pickpockets, don't you think people would stop shopping there? So yes, the SEM industry needs to choose responsible conduct over unrivalled greed, or we're all headed over a cliff.
How to bail ourselves out
I don't think the SEM industry needs a billion-dollar bailout, but I do think it needs to clean up its act. Cancerous companies, much like toxic CDOs, need to be cleansed from the SEM books before confidence can be restored. Paid search practitioners need to be meaningfully accredited, not merely rubber-stamped, before they can run search campaigns. The search engines and the shadowy SEM conferencing business need to stop pushing the ridiculously destructive notion that neophytes can become as qualified as those with years of experience after only a few quick lessons.
Finally, SEM agencies should start thinking seriously about sharing risks with their clients. Hopefully the seasoned, expert agencies will launch programs to limit clients' downside risks and help stabilize the SEM industry once again. After all, the world has more than its share of uncertainty to navigate through on a day-to-day basis, and all the "black boxes" in our industry can be mind-boggling. The least we can do for our clients is present the clarity they deserve when we engage with them.
Mark Simon is vice president, industry relations, Didit.
How the paid search industry is killing itself
It may not be as bad as the banking industry, but SEM could use some help. Here's how paid search can get itself back on track before things get worse.
As the financial markets continue to turn out bleak news, I've begun to think about the many parallels existing between Wall Street and the SEM industry.
Mergers, acquisitions and shotgun marriages
To start with, we're now in the middle of a wave of consolidations that are reminiscent of the successive mergers and takeovers now taking place in the banking sector.
Range Online is the latest independent SEM agency to pack up its tent, as it was folded into iProspect, which was itself acquired by U.K.-based Aegis some time ago. Range follows Outrider (bought by ad holding company WPP, which also owns 24/7 Real Media), Reprise Media (snapped up by Interpublic) and Inceptor (purchased by Verizon).
It's clear that many SEM agencies are having a tough time going it alone, and the shotgun marriage M&A trend will accelerate if the macroeconomic environment continues to deteriorate and the SEM industry -- like the financial markets -- continues to suffer from ills that are largely of its own making.
Search engines enabled this mess
The SEM industry has no direct equivalent to sub-prime mortgages, collateralized debt obligations or over-leverage, but it suffers from structural issues that are largely a product of its ostensibly self-serve nature. Google and the other engines have stoked the fever of irrational optimism by encouraging everyone to believe that all it takes to succeed at search is a credit card and a couple of hours studying the AdWords help file.
The result is a world in which marketers behave like self-medicating patients who believe that watching a webinar on urinary tract infections is equivalent to getting a consultation with an experienced urologist. The fact that a number of people believe they are more qualified to run search than the experts reflects a dismal lack of confidence in SEM agencies. So it's no surprise when expert companies feel that getting swallowed up by a larger conglomerate is preferable to going it alone.
Killing the golden goose
But the search engines aren't the only ones to blame. Like Wall Street's "shadow market," in which trillions of dollars worth of complicated instruments are traded without any oversight, the SEM industry has its own shadow industry -- the conference and trade show business. This business depends on a simple proposition: if you go to enough shows, attend the right panels and rub elbows with the right people, you'll walk away knowing enough to run a competent search campaign. This is as absurd as saying that you can become a qualified mechanic by attending an auto show.
The only reason conferences and trade shows are so profitable for the people who run them is that exhibitors remain willing to buy very expensive booth space. Heaven help the trade show people, however, if exhibitors ever actually read the shows' agendas, which are chocked with seminars on how to succeed without an SEM agency!
Greed may destroy us all
And now let's talk about greed, which is as rampant in SEM as it is on Wall Street. Too many SEM agencies seem to have taken their sales approach directly from Moe's Mortgage Shop. These agencies are commission-driven -- not service-driven -- organizations that don't realize that overselling their services actually hurts long-term revenue goals by disappointing clients, creating client churn and destroying reputations.
Unfortunately, even good SEM agencies get tarnished by the continued operation of the fly-by-nighters. The SEM industry has failed to purge itself of these people and I have zero confidence it will do so at any time in the future. If it turned out that Macy's was filled with pickpockets, don't you think people would stop shopping there? So yes, the SEM industry needs to choose responsible conduct over unrivalled greed, or we're all headed over a cliff.
How to bail ourselves out
I don't think the SEM industry needs a billion-dollar bailout, but I do think it needs to clean up its act. Cancerous companies, much like toxic CDOs, need to be cleansed from the SEM books before confidence can be restored. Paid search practitioners need to be meaningfully accredited, not merely rubber-stamped, before they can run search campaigns. The search engines and the shadowy SEM conferencing business need to stop pushing the ridiculously destructive notion that neophytes can become as qualified as those with years of experience after only a few quick lessons.
Finally, SEM agencies should start thinking seriously about sharing risks with their clients. Hopefully the seasoned, expert agencies will launch programs to limit clients' downside risks and help stabilize the SEM industry once again. After all, the world has more than its share of uncertainty to navigate through on a day-to-day basis, and all the "black boxes" in our industry can be mind-boggling. The least we can do for our clients is present the clarity they deserve when we engage with them.
Mark Simon is vice president, industry relations, Didit.
Wednesday, October 29, 2008
Gasta News:Microsoft, Google and Yahoo
Microsoft, Google and Yahoo have signed a global code of conduct promising to offer better protection for online free speech and against official intrusion.
The Global Network Initiative follows criticism that companies were assisting governments in countries like China to censor the Internet.
The guidelines seek to limit what data should be shared with authorities, in cases where free speech is an issue.
"This is an important first step," said Mike Posner of Human Rights First.
He told the BBC "What this is is a recognition by all these tech companies, the human rights groups and social investors that there has to be a collective response to this growing problem.
"Companies need to step up to the plate and be more aggressive in challenging unwarranted government interference," he said.
The initiative states that privacy is "a human right and guarantor of human dignity," and the agreement commits the companies to try to resist overly broad demands for restrictions on freedom of speech and the privacy of users.
They will also assess the human rights climate in a country before concluding business deals and make sure their employees and partners follow suit.
"These principles are not going to be a silver bullet, but the most important point for me is to provide transparency," said Danny O'Brien of the Electronic Frontier Foundation.
"We have joined this initiative because we know that a wide range of groups working together can achieve much more than the company acting alone," said Andrew McLaughlin, Google's director of global public policy.
'Valuable roadmap'
The impetus for such an agreement follows years of criticism that a number of businesses, including Google, Yahoo and Microsoft have complicity built what has been dubbed the "Great Firewall of China".
Google has been accused of complying with Chinese government demands to filter internet searches to eliminate query results regarding topics such as democracy or Tiananmen Square.
Microsoft has come under attack for blocking the blog of a prominent Chinese Media researcher who posted articles critical of a management purge at the Beijing News Daily.
Canadian researchers uncovered that a Skype joint venture in China monitored users' communications.
And a Chinese reporter Shi Tao was jailed for 10 years after Yahoo China provided his personal information to the Chinese government.
Today Yahoo co-founder and CEO Jerry Yang welcomed the new code of conduct.
"These principles provide a valuable roadmap for companies like Yahoo operating in markets where freedom of expression and privacy are unfairly restricted.
"Yahoo was founded on the belief that promoting access to information can enrich people's lives and the principles we unveiled today reflect our determination that our actions match our values around the world," said Mr Yang.
While China has been painted as the worst abuser, Colin Maclay of the Berkman Centre for Internet and Society at Harvard University said there are other countries and governments all over the world at fault.
"The number of states actively seeking to censor online content and access personal information is growing.
"And the means employed - technical, social, legal, political - are increasingly sophisticated, often placing internet and telecommunications companies in difficult positions."
'Business case'
The Global Network Initiative was drawn up by the internet companies along with human rights groups, academics and investors.
Adam Kanzer who is the managing director and general counsel at Domini Social Investments said as well as being the right thing to do, it also makes good business sense.
He told BBC News "When you see the industry being caught up in the tactics of various regimes around the world, the business case is very clear. Freedom of expression and privacy is core to their business.
"They depend on a wide open, freely accessible and secure internet. That's what they are about. If people don't trust the internet and believe they are secure, then that is counterproductive to their business."
The effort is already being seen by some as not going far enough.
"After two years of effort, they have ended up with so little," said Morton Sklar executive director for the World Organisation for Human Rights USA.
"It is very little more than a broad statement of support for a general principle without any concrete backup mechanism to ensure that the guidelines will be followed."
Mr Posner of Human Rights First disputes that and said this agreement has not been set up as a "gotcha system" but as a way "to work with companies to get them to improve what they are doing, credit them when they do it and call them out if they fail."
While it is hoped many more companies will sign up, two European telecommunications firms, France Telecom and Vodafone, are already said to be considering adding their names.
The Global Network Initiative follows criticism that companies were assisting governments in countries like China to censor the Internet.
The guidelines seek to limit what data should be shared with authorities, in cases where free speech is an issue.
"This is an important first step," said Mike Posner of Human Rights First.
He told the BBC "What this is is a recognition by all these tech companies, the human rights groups and social investors that there has to be a collective response to this growing problem.
"Companies need to step up to the plate and be more aggressive in challenging unwarranted government interference," he said.
The initiative states that privacy is "a human right and guarantor of human dignity," and the agreement commits the companies to try to resist overly broad demands for restrictions on freedom of speech and the privacy of users.
They will also assess the human rights climate in a country before concluding business deals and make sure their employees and partners follow suit.
"These principles are not going to be a silver bullet, but the most important point for me is to provide transparency," said Danny O'Brien of the Electronic Frontier Foundation.
"We have joined this initiative because we know that a wide range of groups working together can achieve much more than the company acting alone," said Andrew McLaughlin, Google's director of global public policy.
'Valuable roadmap'
The impetus for such an agreement follows years of criticism that a number of businesses, including Google, Yahoo and Microsoft have complicity built what has been dubbed the "Great Firewall of China".
Google has been accused of complying with Chinese government demands to filter internet searches to eliminate query results regarding topics such as democracy or Tiananmen Square.
Microsoft has come under attack for blocking the blog of a prominent Chinese Media researcher who posted articles critical of a management purge at the Beijing News Daily.
Canadian researchers uncovered that a Skype joint venture in China monitored users' communications.
And a Chinese reporter Shi Tao was jailed for 10 years after Yahoo China provided his personal information to the Chinese government.
Today Yahoo co-founder and CEO Jerry Yang welcomed the new code of conduct.
"These principles provide a valuable roadmap for companies like Yahoo operating in markets where freedom of expression and privacy are unfairly restricted.
"Yahoo was founded on the belief that promoting access to information can enrich people's lives and the principles we unveiled today reflect our determination that our actions match our values around the world," said Mr Yang.
While China has been painted as the worst abuser, Colin Maclay of the Berkman Centre for Internet and Society at Harvard University said there are other countries and governments all over the world at fault.
"The number of states actively seeking to censor online content and access personal information is growing.
"And the means employed - technical, social, legal, political - are increasingly sophisticated, often placing internet and telecommunications companies in difficult positions."
'Business case'
The Global Network Initiative was drawn up by the internet companies along with human rights groups, academics and investors.
Adam Kanzer who is the managing director and general counsel at Domini Social Investments said as well as being the right thing to do, it also makes good business sense.
He told BBC News "When you see the industry being caught up in the tactics of various regimes around the world, the business case is very clear. Freedom of expression and privacy is core to their business.
"They depend on a wide open, freely accessible and secure internet. That's what they are about. If people don't trust the internet and believe they are secure, then that is counterproductive to their business."
The effort is already being seen by some as not going far enough.
"After two years of effort, they have ended up with so little," said Morton Sklar executive director for the World Organisation for Human Rights USA.
"It is very little more than a broad statement of support for a general principle without any concrete backup mechanism to ensure that the guidelines will be followed."
Mr Posner of Human Rights First disputes that and said this agreement has not been set up as a "gotcha system" but as a way "to work with companies to get them to improve what they are doing, credit them when they do it and call them out if they fail."
While it is hoped many more companies will sign up, two European telecommunications firms, France Telecom and Vodafone, are already said to be considering adding their names.
Thursday, September 11, 2008
Gasta Paid search
Paid search is a proven winner, yet some marketers don't take advantage of its full potential. Here's why you need to put SEM at the heart of your marketing strategy.
Search engine marketing isn't a perfect marketing medium. But compared to every "innovative" marketing methodology that's come along in the past five years, search is a hands-down winner. This is why Google has become a multi-billion dollar powerhouse and why hundreds of marketers are reaping ROI, increased market share and branding benefits from being active participants in search.
The reasons SEM has taken off are both elementary and revolutionary. As a marketing channel, it offers the following strengths:
- Paid search campaigns happen in real-time, making it possible for marketers to obtain almost instantaneous marketing ROI. Search's real-time nature provides for the ongoing fine-tuning of all variables in the campaign in a continuous process of optimization, which means that marketers can learn and improve their campaigns over time.
- Paid search advertising is by its very nature the most unobtrusive way of getting the word out about one's product, service or brand. Instead of pushing a messages in the face of an uninterested and possibly unwilling audience, SEM is a low-key "pull medium," responsive to the user's intention to engage. Therefore, calls to action are more likely to be heeded because users perceive them to be relevant to their intent.
- The data generated by paid search campaigns can have enormous value to marketers, in terms of providing business intelligence, extending CRM efforts and scouting out audience segments that may have been neglected by existing marketing plans. Given that search behavior is highly responsive to non-search marketing efforts (both on- and offline), such data can provide a reliable indication of the effectiveness of all other marketing efforts.
- Paid search is still a relatively inexpensive medium and search campaigns can be dynamically scaled up or down to accommodate varying needs. Applying targeting and segmentation technologies can dramatically reduce (although not completely eliminate) the problem of non-converting clicks.
Unfortunately, each one of these strengths comes with major caveats. The fact that search happens in real-time provides both opportunity and risk. Minor campaign errors can quickly result in significant financial losses unless they are quickly corrected, so the onus is on the marketer to continually monitor search campaigns to ensure peak performance.
The mere fact that search provides the ability to systematically test campaign elements doesn't ensure that such steps will be taken. Nor do many marketers actually use the rich data from search to inform their non-search marketing efforts. Teams can be overloaded with data, and many function in departmental isolation where they are insulated from high-level marketing strategy conversations.
Finally, while paid search is inexpensive relative to other media, media management costs are proportionally higher. Unlike other channels where the media is expensive (such as television) but media management costs are low (because the media is easy to buy), search presents the exact converse. The media (keywords) are cheap but the costs of managing campaigns may be significant -- especially for sophisticated search campaigns.
Given these difficult issues, many marketers choose to simply outsource some or all of the search campaign process to an outside agency, either one that already handles their online media buying or a specialized search shop that does nothing else but search. In my view, there are definite risks with going the big agency route, because big agencies rarely have access to the sophisticated technology required to deliver top-performing search campaigns. Nor does their economic model (which depends on marking up media bought in big chunks such as radio/TV buys) favor intensive work on search. You can't really blame big agencies for regarding search this way, because it's only natural for agencies to focus their efforts on media buying opportunities where the profit potential is greatest.
Specialized SEM agencies provide an alternative to the big agency route, but once again, marketers need to exercise care before committing their search budgets to such organizations. Many SEM agencies are new and don't have more than a few years of operating experience behind them. While many promise to deliver unparalleled campaign results using "proprietary" technology, the fact is that many of them license the same off-the-shelf campaign management tools used by the big agencies, limiting their ability to provide truly customized solutions.
As there are no industry benchmarks for evaluating such agencies, a good selection rule is to look at the agency's client list, seek out positive, unbiased testimonials from those who have used them in the past and, perhaps most importantly, examine how much their existing clients have grown since the agency took over their accounts.
However the work gets done, marketers need to understand that search isn't just another marketing channel, but a fundamental organizing method by which users and marketers can find each other in the terabytes of data constituting the digital world. While it's attractive to think that search can just be bolted onto existing media plans, it is far better to regard search as an integral element at the heart of the marketing strategy, because the demand that you drive through your media efforts is all harvested in the search process.
David Pasternack is president of Didit,Tuesday, August 26, 2008
Gasta to team up with Russian Search Engine Yandex
Yandex operate Russia’s largest internet search engine and are a leading Russian internet and technology company. Our goal is to provide easy access to the wealth of information available online to answer any questions our Russian-speaking users may have. We rely on our in-depth understanding of the Russian language, culture and internet market to provide our users with sophisticated web search and information retrieval services. We also offer them a portal providing a range of other free services and extensive local, national and international information, including user-generated content, which we aggregate and structure in a neutral and user-friendly manner. We believe that putting the needs of our users first is the foundation for the success of our business.
Russian education has historically focused on science and technology, valuing strong applied mathematics and data analysis skills. From our start, we have benefited from this focus, drawing upon the considerable pool of technically proficient, local talent in Russia to create a leading technology company. For more than 15 years, our team has been developing and optimizing our web search and other technologies, earning the trust of our users and making Yandex one of the best known internet brands in Russia.
During the first quarter of 2008, our flagship internet search engine accounted for approximately 54% of all search traffic in Russia, according to Liveinternet.ru, and was one of the top 10 search engines in the world during that period, according to comScore. Over that same time period, our portal generated a monthly average of approximately 3.2 billion page views, including 900 million search results pages.
History of Yandex
The history of Yandex dates back to 1990, when Arcadia Inc., which later became CompTek, initially developed two informational search systems: the International Classifier of Inventions and the Goods and Services Classifier. These systems provided the foundation for Yandex’s technology.
In 1993, the founders of CompTek created Yandex as a search mechanism for the Russian language. Some of our portal’s users have speculated on the etymological origins of the word. One of the more imaginative theories suggested a correlation of “Yan” to the white and “sunny” half of the Yin-Yang symbol. To put the rumors to rest on the meaning of the name, the two founders, Arkady Volozh and Ilya Segalovich, coined the term “Yandex” as an acronym for the phrase “Yet Another Indexer.”
From 1993 to 1994, Yandex’s developers collaborated with the Russian Academy of Sciences to enhance the system’s linguistic capabilities, tailoring it to the Russian language. As an “inflective” language, Russian uses numerous word variations to reflect grammatical purpose and meaning. A key technological advantage of Yandex is that it automatically searches all possible forms of a given word, making each search more accurate.
Another important feature of Yandex’s search technology is morphology hypotheses building, that takes into account the distance between the searched words within sentences and paragraphs. Furthermore, Yandex.ru indexes and searches documents in the major Cyrillic languages — Russian, Ukrainian and Belorussian — as well as in English, French, and German that might be of interest to the Russian-speaking audience
Thursday, July 03, 2008
Gasta News: Brand Piggybacking
It's time to stop complaining about people piggy-backing on your search terms. Use it as an opportunity to hit back, be smarter, more nimble and win, just like Gasta.
Why the hell is someone able to advertise on Google using my brand name? Don't I own my brand name, and my product names? The simple answer is no, you don't, especially when it comes to using them in search. For the delusional lawyers that think they do, can I please laugh at you? It's gone. Shattered. You can have your brand terms copyrighted, trademarked and employ a whole team of leaders for their defense, but owning? That control state exists only in lawyers' minds. Yes, you may OWN them, but the reality is you just can't sue everybody, not anymore. Like copyrighted material that makes it onto video sites, it's a losing battle.
So, what you really need to do is look at this as an opportunity, not an obstacle.
The way that Google works, and I'm sure as hell going to get flack if I get this wrong, is that if the name is in the competitive set and it is relevant to the purchase, category, product or topic, you can buy it.
Now, what you cannot do, or are not supposed to do as a competitor to the brand, is use that brand name in the copy of that ad. You can use it in the title due to dynamic replacement, but you are not supposed to -- or it is greatly frowned upon if you do -- use it in the copy of the ad. But the reality? Eh, a lot more murky. There are just way too many advertisers buying terms, and it's that democratization that is fueling a lot of the growth.
Look, if a company is buying your product name, or your brand name, then you are doing something right. Are they riding the coattails of your brand equity? You bet your lazy corporate lemming butt they are. And they will ride it and ride it until you wise-up on how to defend it.
There are a number of companies that insist on not buying their brand names with the belief that "I am already ranked at the top of the organic results, so I don't need to." And that is true for many clients. But not buying your brand name in addition is ludicrous.
Here are three main reasons why you want to do this:
1. Combination punching
Enough research out there has shown us that the combination of having an organic link and a paid listing increases response by somewhere around 25 percent. Now, you could argue that the organic link is free and that paying for an additional 25 percent is not worth it. Wrong! Your competitors are unlikely to be over in the section of organic listings. They are hitting you in the ad space. Occupy that space so they don't own you. 2. The message
It's the one real way that you can exert control -- your message. The copy that is picked up thorough organic listings is much less easily controlled. It is the crawlers that determine it, and your homepage has to be specifically designed for that purpose to make it better. It is also relatively static and does not change over time. That would require new copy on the homepage, new tweaking and a whole new crawl by Google. When will that happen? Who knows. But you can control exactly what copy appears in a paid listing and about your brand. Adapt that copy to what is going on in your company right now. What is relevant today? Do you want everyone to end up on the one page that gets the highest organic listings? Are you sure? Have you just been hit with some bad PR? Thwart it right there and then lead the user directly to your response. Have: "Rumors untrue, company not being acquired" in the search copy.
There are a hell of a lot more people who search on terms than click on ads. Just because they didn't click doesn't mean you can't seed that meme. Press releases are a thing of the past -- a top-down linear cascade that no longer has relevance to today's consumer. Your brand names are your first line of defense in the PR war, so use them wisely.
3. Navigation
Search is not as much about searching and finding anymore as it is about navigation. People use search engines as "navigation engines" to get to where they are going. You look at the most popular queries in search engines -- the real top searches, not the ones that are edited. They are littered with URLs and brand names. It has just become easier to use search engines to type in URLs and company names than worry you'll end up at some domain park by typing one wrong letter. Spellcheck means you'll almost always get to where you want in the next click.
One of my most amusing ad buys at Ask.com was buying the word Yahoo for purchase on Google that led to Ask.com -- a wonderful triad. When running marketing at Ask, we had some significant challenges. It was never about beating Google. We were Google's largest distributor of ad listings in the world. It was a very symbiotic relationship. Frienemies, if you will. It was about getting people to think of us when they think of "search." Just by being there, we spur top-of-mind awareness for our brand. We were just not in people's consideration set. Look, the reason why Google seems lax is because competition in our business moves our whole industry forward, not just those companies that have been sitting on their brand equity like luddites. It was easy in offline -- just throw a bunch of lawyers at them. But online doesn't just mean those companies in your immediate competitive set, it means thousands of smaller shops that can now afford to advertise.
It's time you stopped complaining about people piggy-backing on your terms and started to look at it as an opportunity to hit back. "But they're driving up my costs for those words, and it's unfair!" Since when is life or business fair? Like sucker fish on sharks, start to look at that relationship as symbiotic. Use them and what they say to your advantage. Stop sticking your heads in the sand, get out there, think of how you can leverage and thwart those efforts -- and attack. Be smarter, more nimble.... and win. Or you can just throw lawyers at the problem, stick your head in the sand and watch them rip business away from you.
By Sean Cummings (nod to Imedia)Friday, June 27, 2008
Gasta Seo: Reputation Management
If your website or products suffer from bad reviews or negative feedback, Sometimes disguised as “constructive criticism” do not sit and hope that it will go away; this is a set of circumstances that you can and must change and influence. Everyone would much rather receive a pat on the back, but how do you stop this negativity from getting in the way of your clients? It’s called reputation management, sometimes clients marketing can conflict with the reputation of an area or a ‘ghettoisation’ as happened with West Belfast during the prolonged troubles, However when local communities started to respond to this negative portrayal in a positive way by starting community festivals instead of traditional ‘bonfires’ and demonstrating and discussing all the positive aspects of the West Belfast community such as low crime, lively social networks, strong community support groups, and neighbourliness. What happened was a complete turnaround of the perception of West Belfast as a ‘ghetto’ into one of a vibrant community that has become a Mecca for conflict resolution.
Gasta SEO Services explains that reputation management and SEO go hand-in-hand because it’s all about getting the positive results above the negative ones. They also suggest participating in and leveraging social media sites such as Twitter, Facebook, LinkedIn, etc. and building up the positive picture of your website to downgrade and diminish the negative comments and to help gain positive momentum.
Gasta SEO Services explains that reputation management and SEO go hand-in-hand because it’s all about getting the positive results above the negative ones. They also suggest participating in and leveraging social media sites such as Twitter, Facebook, LinkedIn, etc. and building up the positive picture of your website to downgrade and diminish the negative comments and to help gain positive momentum.
Friday, February 01, 2008
Gasta search convergence
The Register reports that
The software giant said it would pay 19 Norwegian kroner a share for the Oslo-based firm, which represents a 42 per cent premium to the closing share price on 4 January, the day before
Fast's board of directors and nearly half of its shareholders have already voted in favour of the buy-out and urged its remaining shareholders to accept
In recent months
The Fast deal, which should be completed in the second quarter of 2008 subject to the usual regulatory approvals, will give the firm tailored internet search functions for corporate customers that include the likes of United Parcel Services and Deutsche Telekom AG.
Publicly-listed Fast said it welcomed the arrival of the Bill Gates jamboree, perhaps unsurprising given that in its last set of results the firm reported a third-quarter loss of $100m.
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